Legal News

Market Jitters: Bad for Investors, But Good for Law Students?

By Dan Slater

Ever since the economy started slowing down several months ago, the Law Blog has tracked how the sub-prime crisis and the credit crunch have affected the legal market — from layoffs to litigation. But a recent article in the Daily News tipped us off to an area of lawyering we forgot to check in on: law school clinics.

The piece tells the story of how a team of students at New York Law School’s securities-arbitration clinic (pictured) took on the case of a woman who, in 1999, bought a $50,000 variable annuity on the recommendation of her broker. Shortly thereafter, the annuity, which was reportedly tied to risky investments, plummeted by half. But thanks to a team of 3L’s at New York Law, the client, a retired school teacher, reached an undisclosed settlement with the brokerage firm.

That case stemmed from the last stock market crash of 2001. But given the current market volatility, reports the Daily News, the clinic has seen inquiries surge by 50% in the last two months. Due to an order issued by the state Supreme Court, students can do everything from draft complaints to negotiate settlements. And the clinic, which also exists at seven other New York-area schools, takes on major brokerage firms such as Merrill and Smith Barney.

Hey, LB’ers, we think that’s pretty cool, and it got us wondering whether other kinds of law school clinics are benefitting from the economic climate. Let us know!

Full post as published by Law Blog - WSJ.com on February 22, 2008 (boomark / email).