Law firms: A less gilded future -- The Economist Forum

[scammedhard]

An interesting article about big law, the recession, and globalization.

http://www.economist.com/node/18651114? ... 4&fsrc=rss

[handlesthetruth]

Honestly I was of the "the market is cyclical, it'll all bounce back" mindset until this article.

[whymeohgodno]

Honestly I was of the "the market is cyclical, it'll all bounce back" mindset until this article.

It doesn't have to bounce back to pre ITE levels. I'll be happy if it starts noticeably improving...

[AntipodeanPhil]

Interesting. I couldn't help reading it like an RC passage.

The main point: shitlaw is in big trouble - thanks to computers and outsourcing.

Secondary points: (1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

Inferences: (1) don't go in to shitlaw; (2) avoid law schools that are likely to leave you with few options besides shitlaw.

[dissonance1848]

I love how none of the commenters on the article at the Economist website mention that investment banking is a cartel with no competition, and simply bash law.

[ahduth]

I highly approve of all the developments mentioned in this article.

[glitched]

iiiiiiiiiiiiiiiiiiiiiiiiii want to be a partner!

[FantasticMrFox]

(1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

[rocon7383]

woof

[shoeshine]

(1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

This was my take away as well.

[rose711]

(1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

This was my take away as well.

How are we judging elite? Where was Howrey on the elite/non-elite firm scale? Maybe they were never elite. So, V10 is elite?

[FiveSermon]

If only v10 firms = fine, and everyone else should be worried...that's even worse news than expected.

[jpSartre]

wait so the legal industry isnt that good?

[shoeshine]

(1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

This was my take away as well.

How are we judging elite? Where was Howrey on the elite/non-elite firm scale? Maybe they were never elite. So, V10 is elite?

Howrey = exception not rule. The economy had to claim at least one major victim and (like banks) once people begin to lose faith in a big law firm it is pretty much over. Clients and partners fled because of uncertainty more than anything else. The article eludes to outsourcing for doc review and other remedial tasks that law firms charge big billable hours for. I think what everyone on here is referring to is that elite firms will not feel the brunt of this "cost reduction" as much as smaller or less prestigious firms that handle the less desirable jobs and clients. As long as M and A transactions start to pick up again then the biggest and most prestigious law firms will be fine.

And M and A is definitely back (especially for big firms):
http://online.wsj.com/article/SB1000142 ... lenews_wsj

[Verity]

I love how none of the commenters on the article at the Economist website mention that investment banking is a cartel with no competition, and simply bash law.

Yeah, no competition in investment banking.

Right.

[keg411]

If only v10 firms = fine, and everyone else should be worried...that's even worse news than expected.

I don't think that's what the article was saying.

[TheFactor]

I love how none of the commenters on the article at the Economist website mention that investment banking is a cartel with no competition, and simply bash law.

lol wut?

[AreJay711]

I have to imagine that even before the recession people had to realize that the legal market couldn't do what it was doing forever. If we get in another long, fast period of growth I bet it will return to the way it was in many ways though some are changed forever.

[lawscholar20]

Take note of the third to last paragraph.....kind of promoting a JD/MBA or schools like Northwestern an
Penn where business studies can be incorporated into your JD studies.

[ahduth]

Take note of the third to last paragraph.....kind of promoting a JD/MBA or schools like Northwestern an
Penn where business studies can be incorporated into your JD studies.

Or lawyers with actual work experience.

[uwb09]

Interesting. I couldn't help reading it like an RC passage.

The main point: shitlaw is in big trouble - thanks to computers and outsourcing.

Secondary points: (1) many non-elite law firms are experiencing pressure to cut costs; (2) elite law firms will be fine.

Inferences: (1) don't go in to shitlaw; (2) avoid law schools that are likely to leave you with few options besides shitlaw.

just for reference purposes, what do you include in "shitlaw"

[arvcondor]

Take note of the third to last paragraph.....kind of promoting a JD/MBA or schools like Northwestern an
Penn next to a business school where business studies can be incorporated into your JD studies.

FTFY

I did also find that paragraph interesting, though. Makes me wonder if I should in fact go after a JD/MBA.

Also:

Inferences: (1) don't go in to shitlaw; (2) avoid law schools that are likely to leave you with few options besides shitlaw.

I got the sense that the article cast uncertainty on firms well above the shitlaw threshold, unless you are simply counting all non-V100 firms as "shitlaw."

[FantasticMrFox]

Take note of the third to last paragraph.....kind of promoting a JD/MBA or schools like Northwestern an
Penn where business studies can be incorporated into your JD studies.

or all those other universities offering JD/MBA a lot of them are all starting to offer the joint degree programs; if this is in any way correct: http://www.top-law-schools.com/forums/v ... f=2&t=8262 then at least 40 universities.

But this is me speculating but wouldn't JD MBA be counter productive? I thought that firm died due to partners fleeing from uncertainty so law firms=want certainty but the joint program doesn't add to that certainty with that extra "escape-route" written over it. But the article advocates a more rounded lawyers for survival. Meh, why wasn't I born a few years earlier?

[tipler4213]

tag

[lawscholar20]

Take note of the third to last paragraph.....kind of promoting a JD/MBA or schools like Northwestern an
Penn where business studies can be incorporated into your JD studies.

or all those other universities offering JD/MBA a lot of them are all starting to offer the joint degree programs; if this is in any way correct: http://www.top-law-schools.com/forums/v ... f=2&t=8262 then at least 40 universities.

But this is me speculating but wouldn't JD MBA be counter productive? I thought that firm died due to partners fleeing from uncertainty so law firms=want certainty but the joint program doesn't add to that certainty with that extra "escape-route" written over it. But the article advocates a more rounded lawyers for survival. Meh, why wasn't I born a few years earlier?

I was specifically pointing out Penn and Northwestern where you can get a nice "business" background without the price and extra year of a JD/MBA

Your reasoning that a JD/MBA may scare away a firm from hiring adds to the advantages of attending a school like Penn and getting a business background via a certificate from Whartons without the whole MBA part.