Legal Commentary

Warning to BigLaw Partners: Don't Read The November Issue of The American Lawyer

By Patrick J. Lamb

Legendary Sioux warrior Chief Crazy Horse is renowned for his exhortation "today is a good day to die."  That sentiment must have been rampant among large law firm partners when they received their November edition of The American Lawyer.  Trepidation should begin right at the outset, reading Aric Press' column.  You need to read it for yourself, but the gist is that if you're a partner at a big law firm, your fellow partners have the ability to create billion dollar liabilities for your firm.  More troubling is just how easy it can happen when the firm compensation system and culture rewards partners who generate business.  The real life story of Mayer Brown partner Joe Collins and his former client Refco is told in depth by Susan Collins later in the issue.

The issue then transitions into "20 Days That Shook The World: Chronicle of a Future Foretold."    One troubling quote comes from Peter Kalis, chairman of K&L Gates: "The metaphysical question is whether you can have bulge-bracket Wall Street firms without Wall Street."  

After that sobering reflection comes "Why Heller Died," the story of the demise of a century-old landmark firm.  If it can happen to Heller, there must be some question in the back of your mind about whether it can happen to your firm.

But the real eye-opener has to be the article "Bigger Isn't Better" by Ben Heineman, the legendary former General Counsel of General Electric.  Heineman carefully dissects the purported advantages of large firms and lays waste to them.  I am going to write more on this article since it is profoundly important to inhouse purchasers of legal services, but BigLaw partners have to ask themselves what benefit their current business structures actually create.  The vision in my mind, having both worked at an AmLaw 100 firm and having read Heineman's article the scene from Wizard of Oz where the curtain is pulled back and the "great and powerful" Oz is exposed for what he really is.

Let me avoid over-hyping the issue.  Today is not a good day to die.  But it is a good day to be critically reflective about your firm does business.

Full post as published by In Search of Perfect Client Service on November 12, 2008 (boomark / email).