The Last Days of the American Lawyer

Thomas D. MorganMajor player in National LGL: Reporter ‘82 Rekindling Prof’lsm; Assoc.Reporter ALI Rstmt LGL; Reporter MDP

C’mn; Member e2kFormer President, AALS

I. Intro.: The Golden Age is Over

• “golden age”: ‘50s’- 60s’ nobody starves• ‘09 – future: “musical chairs … music

stopped”– Increased external regulation– Decrease in “distinctively legal questions”– Future Lawyers: need to develop both specialized

substantive expertise & non-legal aspects of clients’ problems. Aim: meet C needs for higher quality at lower costs

B. Changes that have brought us here: 8 trends pp. 3-10

1. Demise of exclusive self-regulation2. Competition (overproduction of lawyers

during time of shrinking demand); less need for generalists

3. Globalization (multi-jurisdictional in US & internationally)

4. Technology (24/7; repetitive legal work becoming commodities, competitive market Ls & nonLs)

B. Changes that have brought us here: 8 trends

5. Increased size of legal employers (20 > 1000 lawyers; demise of “all purpose” sole practitioners)6. Stratification of LP, Heinz & Laumann: ’65: 53% corp. law for business entities; 40% individual clients‘95: 64% corporate; 29% individualsSIGNIFICANCE???? ACCESS TO JUSTICE?

B. Changes that have brought us here: 8 trends

7. Rising power of in-house counsel***since ‘70s, brought work in-house in response to private firm billing practices, “vertical integration” lowered cost of recurring tasks, who better understand company & executives trust more (“team player”?)

8. Declining significance of having U.S. law license (gasp!). U.S.: MJP, E.U. (cross-border), U.K. LSA (non-L owners, managers, Alt. Busn. Strucs.), AU (same). U.S.: outsourcing to other countries, subject to RPC 5.1. Ethics 20/20: ALPS?

C. Implications for Future American Lawyer pp. 10-13

p. 10: find way to differentiate yourself, become “among the best at doing particular kinds of work that a reasonable number of clients need done.”Many trad’l lawyer services will become commodities (standardized products sold primarily on basis of price). **Technology facilitates sale as forms or routine tasks easily tailored to individual.

On-line Providers

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http://www.rocketlawyer.com/

C. Implications for Future American Lawyer pp. 10-13

Public policy implications: impact of competition on supply & costs

Expanding client expectations: beyond technical legal competence to understanding C’s business operations & impact on C’s legal decisions

C. Implications for Future American Lawyer pp. 10-13

How to acquire that expertise?“Star lawyers”: big personal reputations & demonstrated ability to manage teams of other lawyers & non-lawyers.Most others: serve on teams or as consultants to teams.

D. The Future of the American Law Firm pp.

13-21

• Specialty practice groups will continue• Best big firms as multi-specialty organizations

will thrive b/c– Internal risk management, cyclical practice

(boom/bust, deal-makers & bankruptcy)– Available large teams for “project” work– Ability to diversify services to meet C demand – Marketing as brand name

• Local observations?

D. The Future of the American Law Firm pp.

13-21

• Needed regulatory changes for U.S. to remain competitive in global market RPC 5.4 form of practice restrictions, prohibit MDPs.

• Corporate clients may view professional service firms more as shopping malls, hire multiple providers with expertise in different areas. Upscale version of Limited Scope Representation (LSR) – Internal firm impact: stars “eat what kill” vs. scraps to

menial servants– Rewards to originating partner, discourage careful vetting

or prospective clients

D. The Future of the American Law Firm pp.

13-21

• Consciousness of law firm culture• Outside financing of law firms? (AU, U.K.)• Allow reasonable restrictive covenants on

mobile lawyers, revise RPC 5.6(a)?• Costs of hiring & training new associates,

retention problems

E. Impact of Coming Changes on Legal Education??? pp. 21-25

1. Legal analysis “think like lawyer”2. Sufficient substantive law that new

knowledge can be placed in context3. Concrete skills to improve client’s situation4. Enough non-legal understanding to see &

understand client’s problem from client’s perspective. (empathy)