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Ex-BigLaw Associate, 29, Forms Biotech Boutique via Craigslist

Posted Jul 27, 2009 11:54 AM CST
By Martha Neil

When Afif Ghannoum decided to open a biotechnology boutique in Cleveland, the 29-year-old former BigLaw associate advertised for potential partner-level attorneys on Craigslist. He received responses from nearly 100 lawyers in Ohio and another 400 in New York City.

To help keep costs low, the firm's nine lawyers operate out of a tiny 400-square-foot office (with plans to move to a 500-square foot office) in the city's downtown area, doing most of their work from home on a virtual basis, reports the Med City News. Only about half are based in Cleveland. It has no billable hour requirements, and pays lawyers based on the work they produce.

The firm openly promotes its bare-bones alternative operating structure, explaining on its website that the Ghannoum Law Firm's attorneys—who are "from the top law schools and firms"—work at clients' offices or at home, "keeping our costs down [and] allowing us to pass tremendous savings to our clients, without sacrificing the quality of services rendered.

"Since we only employ senior-associate and partner-level attorneys, our clients do not pay to train inexperienced young attorneys," the website states.

Clients are coming in through through word of mouth, Ghannoum says. Ghannoum, a former corporate and real estate associate at Squire Sanders & Dempsey and Baker and Hostetler, is the son of a prominent local physician.

The firm sees a big opportunity in offering economical legal services to start-up biotech companies, Ghannoum tells the medical news service, and he is thinking big in terms of potential growth. He says it is possible that the firm will have a 50-lawyer attorney roster within the next two to three years, as it aggressively expands its client base.

Comments

1.

David
Jul 28, 2009 7:02 AM CST

Not one of those attorneys even listed the name of their law school or the bars for which they are member(s).

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2.

craigslist survey
Jul 28, 2009 1:24 PM CST

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3.

Neej
Jul 28, 2009 2:51 PM CST

So, at 29 and a big law alum, you’re not partner caliber? Really? Does this firm specialize in document review and coffee fetching?

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4.

DR
Jul 28, 2009 5:21 PM CST

Get over it Neej…I didn’t go to law school until I was 37.  Didn’t make partner until I was 29?  The odds were against me!  LOL.

Actually, most partnership tracks at BigLaw are in the 8 or 9 year range.  He would have had to graduate law school at at least 21 to make partner.

I admire this person for his creativity.  What have you done lately?

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5.

anon
Jul 29, 2009 10:06 AM CST

Yep DR, and, erm, where does the article say that he wasn’t “partner caliber”?  Or is it your belief that anyone who can make partner in biglaw wants to stick around to do so?  Guess what—most (or ar least many) have no desire to stick around—they simply do so because they have no idea what else to do.  This demonstrates a creative, entrepenurial approach to a career plan that might well turn out to be far more meaningful and rewarding than biglaw drone.  Pretty impressive for 29.

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6.

Afif Ghannoum
Jul 29, 2009 2:17 PM CST

Hi everyone, the article was written about my firm, and so I just wanted to clarify that the vast majority of the work that we do is actually done by other attorneys, not myself. I never claim to be “partner-experienced” to clients, but they see that the attorneys I do put on the project are indeed extremely experienced. My responsibilities at the firm lie more in project management and business development. Just thought I would clarify that.

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7.

anon
Jul 30, 2009 6:10 PM CST

Afif,

Cheers to you for finding a niche that needed finding.  On my initial read of the ABA article, I thought “oh, like Axiom with a niche.”  When I went back to the original article, I realized that “Axiom with a niche” is exactly the business model that your hitting for (though with even less overhead).  This is a great opportunity for companies, and lawyers alike, to explore an alternative that until recently, wasn’t even potentially available.  Congrats for seeing and filling the niche.

I believe that a shake-up in the industry is coming down the road, and that your firm has captured market early.  Best of luck.

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8.

Anonymous
Jul 31, 2009 4:01 AM CST

Having spend 20 years in very big US and international law firms (more than 12 as a partner), I have to say that being a partner in BigLaw is not all it is cracked up to be.  I did pretty well but spent a lot of time wondering whether the firm was really creating value for clients and whether the rates we were charging (“market” rates, so they say) were really fair.  I went in-house (as International GC at a major biotech company in fact) a few years ago and now have seen both sides.  This guy gets an A+ for creativity, ingenuity and pragamatism.  ALL in-house GCs and law departments are trying to rein in runaway outside legal spend and are clamoring for a sea change in the way law firms charge.  The billable hour is inefficient nonsense and the rates that big firms charge are ridiculous and not sustainable.  The quality of legal work coming out of those firms is not always appreciably better, as compared to smaller and hungrier firms.  My hat is off to this guy for trying to keep costs to clients down without sacrificing quality.  Bravo and Godspeed!

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9.

B. McLeod
Jul 31, 2009 6:52 AM CST

And, it’s not “cracked up to be” all that much.  More or less just “cracked up,” period.

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10.

Jim Smith
Jul 31, 2009 7:02 AM CST

Nice work Afif!

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11.

JFK
Jul 31, 2009 7:17 AM CST

Good job, Afif!  As a former large law firm partner and current one-person internal law department, I have to use outside counsel all the time, and I just can’t stand the way they pile on, wrack up the hours and don’t get the message that we can’t just throw unlimited amounts of $$ at outside lawyers.  I hope more people show your kind of creativity and practicality for areas beyond biotech.

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12.

A. Non
Jul 31, 2009 7:39 AM CST

Here’s what I noticed—“Since we only employ senior-associate and partner-level attorneys, our clients do not pay to train inexperienced young attorneys,” the website states.
Every “innovative” law firm that breaks off from Big Law makes this claim.  And the corporate client community trend is to reject the use of junior lawyers on their matters.  With all due respect to JFK, SO WHO IS GOING TO TRAIN THE NEXT SOURCE OF NEW LAWYERS?

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13.

PAN
Jul 31, 2009 7:39 AM CST

JFK—So, if you were the buyer/client of legal services, why did you put up with your seller/firm overcharging you, piling up hours, etc.?  Did you try to negotiate fees?  Did you look for smaller, less “prestigious” firms to do your work?  You have no one to blame but yourself.

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14.

Netta
Jul 31, 2009 7:41 AM CST

inexperienced attorneys can only become experienced attorneys when they have jobs. thanks for pointing out why young attorneys can’t find work right now.
i’m sure you (Afif) were paid during your training, seeing that you came from BigLaw, but i guess that’s something that you won’t pay forward. so i’m sorry if i can’t say “nice work”.

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15.

PAN
Jul 31, 2009 7:45 AM CST

A. Non—What’s wrong with law firms paying their trainee lawyers as a cost of doing business?  If they did, they sure wouldn’t accept a trainee spending 15 hours on a memo on a point of law the senior partner already knows the answer to.

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16.

new associate
Jul 31, 2009 8:03 AM CST

Considering that most first year associates who went straight from college to law school are around 26 years old, I find it strange that a 29 year old is bragging about not employing “young, inexperienced” attorneys.

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17.

Mgiord
Jul 31, 2009 9:12 AM CST

Message to Netta—This uy is in BUSINESS to earn a profit!!  Not to pay it forward!  Get real.  This is not MAOIST CHINA.

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18.

FSB Legal Counsel
Jul 31, 2009 9:40 AM CST

They say that imitation is the greatest form of flattery.  I guess we owe a “Thank You”.

www.fsblegal.com

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19.

Gea
Jul 31, 2009 9:42 AM CST

I wonder if the Ghannoum attorneys have medical and dental insurance? Are they employees or independent contractors? It sounds to me that they are still working on the same billiable hour model to get paid by Ghannoum.

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20.

gea
Jul 31, 2009 9:48 AM CST

Message to Mgiord - Training is part of the price of doing business. If you or Afif won’t train your attorneys, then you are sponging off the people who do train.
Number two, socialism or communism is about communal profit versus landowner profit model. Training is a necessity no matter which model you choose.

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21.

JN
Jul 31, 2009 10:03 AM CST

Afif,

It is such a pleasure to read about someone taking initiative rather than spending their time whining on the ABA blog.

I’m not sure whether you will be successful or not, but if you aren’t, I’m willing to bet that you find something else to try, without complaining.

Good luck!

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22.

MADman
Jul 31, 2009 10:22 AM CST

This is the type of non-story, credulous replication of a press release that has become far too common here.  The only reason this article is here is to use the word “Craigslist”  Replace it with it’s functional equivalent, “Help Wanted Ads” and how is this is interesting or newsworthy?

As for the firm itself, I don’t begrudge anyone taking a shot and going out on their own, but I’m only hiring a ‘firm’ started by a kid (relatively) admitted in 05, starting a company with his dad 3 years later, and cobbling together far flung lawyers - even if experts - via Craigslist, if I simply can’t afford anything else.  The irony of touting firm/education strength on the website, then listing hardly any of either is typical misguided puffery for any new business.  The failure to list any licensing information for any of the attorneys however belies inexperience that might engender a how-ya-doin? from various state bar ethics personnel.

Not hating - just saying.  Good luck.

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23.

Happy Lawyer
Jul 31, 2009 10:28 AM CST

Ghannoum’s web site indicates Afif has five years experience (at “two of the largest firms in the country”)... so, “new associate,” he obviously graduated ahead of the curve at about age 24.  (Congrats on starting a new firm!) Notwithstanding, it is odd to boast “from the top law schools and firms” and not fill out your lawyers’ bios with those facts.  The only lawyer for whom I could find the information was Ms. O’Rourke Nugent—who attended to Albany Law School (and College of Mount St. Vincent undergrad).

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24.

Happy Lawyer
Jul 31, 2009 10:34 AM CST

BTW—Albany Law School is ranked 98 on the “Law School 100” 2009-2010 listing and is simply identified as a tier 3 law school on the US News & World Report ranking… not that rankings are everything, but I don’t know that many who would include Albany Law School among the “top” in the country.

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25.

Melinda Sossamon
Jul 31, 2009 11:05 AM CST

My firm has been pursuing this same model for almost 5 years.  Our clients are very happy with both the quality and the affordability of our services.  Hats off to Afif!

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26.

gea
Jul 31, 2009 12:01 PM CST

Melinda Sossamon - Do you pay your employees medical and dental insurance, as well as disability, and other normal quality of life benefits or do your employees get only a paycheck? If you can answer yes, then I too congratulate Afif and yourself. Hopefully, when the enconomy turns around, top notch attorneys will not have to sell themselves to the lowest bidder just to keep working.

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27.

john
Jul 31, 2009 12:03 PM CST

Good fact check Happy Lawyer.  Afif- never let the facts get in the way of a good story!

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28.

km
Jul 31, 2009 2:18 PM CST

Sounds like an interesting concept, but hopefully it won’t catch on too well, since I’m not partner-caliber or a senior associate.  There still need to be some firms around that are willing to train less experienced lawyers. Otherwise, how else will we mid-level associates become experienced?

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29.

JN
Jul 31, 2009 4:54 PM CST

#26,

What the heck is a “quality of life benefit?”

Medical insurance, etc. is what used to be known as a “fringe benefit.”  Some firms paid them, others did not.  Prospective employees get to decide whether to seek employment at firms paying specific benefits or other firms that did not pay them.  Presumably, there was some “trade off,” either in amount of compensation or other perquisites, that tipped the scale one way or another.

One “finger on the scale” is obviously federal income tax laws which favor employer provided medical insurance, etc.  I remember a time in the 1980’s when employers frequently provided “company cars” to professional employees.  When the IRS changed the regulations to restrict employer deductibility of company cars, that benefit quickly melted away.

Those of us who are self employed realize that there are no “quality of life” benefits.  There are just obligations which have to be met one way or the other.  We each get to choose what is best for us, at least until the government steps in to tell us that it knows what is best and we no longer get to choose.

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30.

Afif Ghannoum
Jul 31, 2009 6:38 PM CST

Just want to reply to a few things. First, if you read my previous comment above, you’ll see that I don’t claim to be partner-level experienced, in fact, i wouldnt even claim to be senior associate experience. What I do say is that I only hire that level of experienced people. My job at the firm is to run the day to day firm, develop business, and make sure the client is getting the right people on its project.
Next point, as to not paying it forward/not training young attorneys, I think it’s a presumption to think firms that hire young attorneys provide amazing training early on. and if there was a way to train young attorney, while not piling clients with those costs, ergo, a medical residency type approach, i would be all in favor of that. but the reality is, clients feel forced to pay high rates for inexperienced attorneys. also, to be clear, we dont really do work that young attorneys would do. we are usually brought in for specific experience, so it’s not like it’s a bunch of senior attorneys doing basic document review.
As to FSB Legal, I am not sure if the insinuation that I copied your model. as I mention upfront in the medcitynews article that originally covered us, i got the inspiration from axiom legal. i have the utmost respect for what they have done, as do i for your firm. it’s a great idea, and i thought it would work in this area of work. so to be clear, i never claimed to be the original thought leader on organizing a firm like this.

next point - again, as mentioned in the original article, all but one of the attorneys are employees. the rest are indep. contractors. and yes, they do get paid by the hour (or by the project if fixed fee), but it’s totally different that biglaw because we do not have a billable hour goal, and attorneys can pick which projects they want to work on. that is certainly NOT the case in most big law firms.

As to the credentials of our attorneys, we provide potential clients with very detailed bios on our attorneys, which includes their experience, education, etc. Perhaps we should add more details on the site, it was honestly not something I really thought about one way or the other, because i know that the first thing clients are going to want to see are their credentials, which we do at the beginning of every introductory meeting.

Also to be clear, the attorneys are not “far flung” but are in Cleveland, New York and Boston. That’s pretty manageable, and not unlike working on projects for other firm offices (which I did a number of times at large firms.) And for the record, I didnt start this with my dad, not sure where that came from.

While Theresa did not go to Yale, she has tremendous experience doing IP work for some of the largest companies in the world. I am really referring to the fact that overall, our attorneys have excellent backgrounds.

As to “top notch attorneys selling themselves”, that perplexes me. We attract attorneys who do not want to work in big law or big companies anymore, regardless of the economic cycle. Not one of the attorneys i hired was in any way desperate for a position, or hard up and needed to take something. My firm offers them a real way to do the type of work that is typically (not always) found at large firms, at which, you must work incredible hours. most of my attorneys on the other hand, pick two or three projects to work on, and that’s it, which gives them a lot more control over their time.

As to benefits, no we dont provide them yet, but we are working towards that.i have only been able to do so much in five months, and it’s definitely something I want to provide asap.

as to providing a place for mid-level associates etc., we are not looking to replace big firms. there will always be a need for large firms to do logistically challenging and high profile projects. that is one of the first things we say to potential clients. we are simply a way to complement outside counsel. what that means is that, mid-level associates is just not part of our model, because clients usually turn to us for ready to go expertise.

i hope this clears up any misunderstandings etc.

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31.

Joe
Aug 1, 2009 6:28 AM CST

I find little interest in this article.  How about someone like me?  Graduated a third tier law school with honors, passed the bar, opened shop and didn’t ask for anyone’s help.

I’ve been running a rock bottom cost practice for 9 years, and have passed along the savings to my clients.  I’ve spent zero in advertising.

Here’s the rub.  So what if they are Big Law or top school graduates.  As a solo without all the staff and resources I’ve taken AV rated, K street firms to the mat.

Only other thing to say is that I’ve done this out of choice.  Due to the economy, I recently thought to work at a Government Agency but they only want top school, yadda.  I’m sick of hearing about those who come from priviledge and the supposed value they provide.  I’ll stand up against any of them and have a high probability of winning because most of them in this category don’t know how to “work.”

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32.

boutiqueless
Aug 1, 2009 2:03 PM CST

Just because you call it a “boutique” doesn’t make it so…..

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33.

Helena Clift
Aug 3, 2009 12:27 PM CST

I LOVE success stories of lawyers that have combined another interest with the law and found a great niche, have used an entrepreneurial approach to leverage their legal practice, or made a successful transition out of law to something that gives them much more satisfaction and fulfillment.

Most dissatisfied Big Law attorneys CAN stay in the law one way or another.  It takes a more ‘out of the box’ mindset, some courage, and some planning, but it is do-able.

On the topic of virtual law firms, check out Heritage Law, founded by Nicole Garton-Jones, and recently nominated for the British Columbia branch of the Canadian Bar Association’s Work Life Balance Award. They have 10 people at 10 different locations, all connected by technology that works to give all the staff - not only the lawyers - the quality of life and flexibility they want.  Check them out at bcheritagelaw.com. (I have no vested interest in promoting them - they’re not a client. I’m just impressed with what I’ve learned about how they run their business. )

On the entrepreneurial front, virtual legal practice has to be the way to go as long as you maintain a good network of collegial colleagues to bounce ideas around with. I do think training and mentoring are important too, Afif, and rewarding. It will also be vital to attract and retain the caliber of person you want for your firm and will enable you to grow organically and keep the quality up. Congratulations! I’m sure we’d all love to hear more.

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