Posts on ‘November 12th, 2008’

What impact does a slow economy have on the amount of work corporate law departments send to outside firms? The answer depends on whom you ask. Two recent surveys offer different takes on how the lethargic economy is affecting the distribution of legal work. One survey found that legal departments have cut spending on outside counsel and have become more selective about the work they send out. But another survey has found that most corporations have maintained or increased their reliance on outside firms.

Two thoughtful jurists issued opinions in electronic discovery matters that took opposite tacks in different situations to achieve the same goal: to move along the discovery process. They both illustrate one tenet, namely, that in e-discovery practice, informed, smart answers win.

For a growing number of lawyers, time in the office is no longer de rigueur. To stem defections and attract recruits, flextime has become the law firm perk of the moment. Even in a bad economy, work flexibility has staying power, partly because it doesn’t cost anything. Many lawyers are happy to work like maniacs, provided they do it their way, at home or on an alternative schedule. Flextime started as an accommodation to working mothers, but young male lawyers might have boosted its acceptability.

Just over six months into the current fiscal year for most English firms — most of which operate on a May 1 to April 30 fiscal year — a steady trickle of them already are reporting first half revenues. And after a spectacular 2007-08 that saw some firms report revenue increases of up to 25 percent, current gains are modest but still notable given the turmoil in world markets.

White & Case said on Tuesday that it will lay off about 3 percent of its global legal and staff head count as part of a review of firm operations in light of the economic downturn. The layoffs will affect about 70 associates and 90 staffers, spokesman Nicholas Clarke says. The firm insisted in its statement that it “anticipates a strong 2008,” but is “exercising prudent business judgment” in anticipation of a weakened global economy in 2009.

While there’s anger and recriminations in California’s gay-rights movement after voters there banned same-sex marriage, gay couples in Connecticut are at the opposite extreme: They’re getting ready to exchange vows. Gay marriage is legal in Connecticut now that a judge has cleared the way. New Haven Superior Court Judge Jonathan Silbert ruled at a brief hearing Wednesday morning that gay and lesbian couples now may pick up marriage license forms at town and city clerks’ offices statewide.

The recently issued SEC enforcement manual, which addresses a variety of subjects ranging from waiver of the attorney client privilege to the best practices for Bates stamping documents, is a welcome reference tool that contains a multitude of detailed provisions, says attorney Amy Walsh. Given the market events of the past few months, and the heightened SEC activity that inevitably will ensue, this manual is requisite reading for any attorney who interacts with the Division of Enforcement.

The success of law firms depends on a variety of factors, including differences in management, operations and the wide range of characteristics they emphasize. Consultant Rees W. Morrison hones in on the factor of sheer numbers of lawyers as a primary driver of disadvantages for law departments. He sketches some of the downsides to law departments when they retain massive law firms and considers seven attributes of giant law firms and their attendant disadvantages for law departments.

Natural foods supermarket chain Whole Foods Market Inc. has blasted the Federal Trade Commission for proposed changes to rules governing the FTC’s administrative complaint process for all types of cases, such as anti-competitive mergers, and called for other companies to join a committee opposing the changes. One of the more controversial provisions would set strict time frames for an evidentiary hearing after the FTC files an administrative complaint against a party, unless it rules otherwise.