Health & Fitness
Is the business of law becoming more efficient?
The legal industry has been criticized for inefficiency on numerous occasions. However, a trend seems to be emerging, at least in large firms, to run their practices more efficiently.
By: Lori T. Williams, Owner/Managing Attorney of Your Legal Resource, PLLC
The legal industry has been criticized for inefficiency on numerous occasions. However, a trend seems to be emerging, at least in large firms, to run their practices more efficiently. Honigman Miller recently hired a COO for the business and litigation division, a client services manager, a chief value officer, and a deputy chief officer. Project managers, price estimators and client team leaders are among the next wave of hires for the firm. David Folytn, CEO, said “Lawyers are generally horrible businesspeople. What clients are looking for is a real value in the world delivered by lawyers. That comes in many forms, but a lot of it is understanding busines and hiring non-lawyers in areas where we don’t need lawyers doing the work.” See Law firms hiring non-lawyers to help streamline operations.
Pepper Hamilton, a Philadelphia law firm with an office in Detroit, hired a non-lawyer CEO earlier this year. Nina Gussack, a Chairwoman for the firm noted, “we concluded that a management model that more closely resembles those of our clients would enable the lawyers at Pepper Hamilton to focus on providing legal services in the most effective way for our clients.” See Pepper Hamilton law firm in Phila. hires non-lawyer as CEO.
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Other local Big Law Firms reported that they are not currently hiring more non-lawyers because the local market is not growing. However, they currently employ non lawyers in areas such as billing, IT, and human resources. See Law firms hiring non-lawyers to help streamline operations.
While law firm management is shifting to non-lawyers, law firm ownership still remains largely with attorneys. A Judge in New York threw out a lawsuit challenging a rule that bans non-attorneys from investing in law firms. See US Judge tosses lawsuit on law firm ownership ban.
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The ABA has a policy of prohibiting non-lawyer ownership of law firms. That policy was recently reviewed and the conclusion was to let it stand. See ABA Commission on Ethics 20/20 Will Not Propose Changes to ABA Policy Prohibiting Nonlawyer Ownership of Law Firms. Notwithstanding the ABA’s policy, the District of Columbia and some foreign jurisdictions (including Australia and the United Kingdom) permit non lawyer ownership of law firms.
Hopefully clients will feel they are receiving more value, at a lower cost, than in previous years. Leaner operations, coupled with another trend of offering alternative fee arrangements, is a step in the right direction.
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Lori T. Williams is a 23 year attorney based in Birmingham, MI. She owns a legal referral and legal consulting business called Your Legal Resource, PLLC. She assists individuals and small businesses in need of legal advice or representation by connecting them with the right legal specialist for their situation. She also provides consulting services for attorneys and other professional service providers on how to generate more business through effective branding, marketing, networking, and by creating strategic partnerships. For more information, visit www.bestlegalresource.com.
