
Trusting a Firm Under Pressure
Cash strapped businesses fighting for survival, professionals reducing headcount for lack of work. Potential for a clash of wills or a loss of trust? The Greatest American Lawyer asks the question in its appropriately entitled (if a little long-winded) article, "Why Would Any Client Continue to Trust Their Law Firm Once They Realize that Firm is Under Severe Financial Stress?" We all know how it works. Law firms start to see workloads lighten, and they start generating a bunch of …
Cash strapped businesses fighting for survival, professionals reducing headcount for lack of work. Potential for a clash of wills or a loss of trust? The Greatest American Lawyer asks the question in its appropriately entitled (if a little long-winded) article, "Why Would Any Client Continue to Trust Their Law Firm Once They Realize that Firm is Under Severe Financial Stress?"
We all know how it works. Law firms start to see workloads lighten, and they start generating a bunch of "make-work" for their partners and associates. The work that is generated has little or no value to the client. It is designed exclusively to generate revenue for the law firm.
We’re not sure firms necessarily need to see workloads lightening for this, with associate targets often stratospheric, bill padding is not unheard of even in the good times.
What I don’t understand is this. Why would these clients, knowing their large law firms are under severe enough financial stress that they are having to lay off large numbers of lawyers, trust those law firms to avoid "make-work" billing. One of the many challenges posed by hourly billing is that it requires a high degree of trust between the law firm/attorneys and their clients. In a growing economy, a client might believe that the law firm has more than enough work to keep it busy and will only allocate hours to things that are meaningful. If I were a client of any of the law firms on the layoff list, I would actively be seeking other alternatives in the market from firms which are financially stable or growing. There is no way I would trust that my law firm was going to put my interest ahead of their own instincts for survival.










March 17, 2009
firms pad bills all the time
March 17, 2009
course they do
March 17, 2009
Time recording is generally a pretty arbitrary exercise. Bills are bound to be padded when associates have to hit their targets when they are unrealistic – this is especially true in the downturn.
March 17, 2009
maybe but how do you chose who to trust; there is no correlation between layoffs and bill padding. finding a good lawyer is about seeking individuals not firms hence the reason a lot of businesses move with particular partners