Don’t Worry, Some Firms Tell Attorneys, But Many Are Cutting Costs

Law Practice Management

Don’t Worry, Some Firms Tell Attorneys, But Many Are Cutting Costs

Posted Oct 8, 2008, 02:49 pm CST
By Martha Neil

As some law firms react to worldwide financial turmoil by calling meetings to tell partners and associates, essentially, "Don't Worry, Be Happy," many—including a number of those holding the meetings—are also focusing on cost-cutting.

Expenses that are being scrutinized include rising office rent ($40 per square foot is now common), equity partners who don't produce, summer associate programs and other discretionary expenses, according to an American Lawyer article reprinted in New York Lawyer (reg. req.).

International megafirm DLA Piper, "which both reduced offers to summer associates and instituted a support staff hiring freeze, is also targeting discretionary spending," the legal publication writes. "Last year the firm spent millions of dollars to hold its annual retreat on a yacht that sailed from Barcelona. This year, practice group retreats are replacing the firmwide fete, which will become an every-other-year affair."

Related coverage:

ABAJournal.com: "Is Heller the First of Many?"

ABAJournal.com: "In Brave New Post-Boom World, Corporate Clients Now Want Value"

ABAJournal.com: "Critical Legal Skill in Hard Times: Collections"

ABAJournal.com: "Will 2008 Be Law Firms’ Worst Year Since Early 1990s?"

Comments

Report Abuse

Posted by Matt Muphy - 1 month, 1 week, 4 days, 20 hours, 27 minutes ago

If you’re an associate and concerned about financial security, I recommend reading the Model Rules of Personal Finance from the ABA. It sets out everything you need to do financially and also alerts you to what to expect working at a law firm.
Posted by Ellen Barshevsky - 1 month, 1 week, 4 days, 5 hours, 5 minutes ago

It is not a good senario out there, and all company’s are cutting costs.

My firm is NOT giving out any bonuses this year. I say it is a bonus to be lucky to hold on to our jobs.

My boyfriends’ company told him to cancele a class he was going to fly to in New Orleans. Even though he PAID for the airline ticket already, and the class tuition. He said he MAY get that back.

I say this is mabye good to cut that cost, but he will STILL need to get education, and the ticket for the airplane is LOST.

My boyfriend wanted me to go with him, but I do NOT have any more vacation time and now that he is NOT going, it is good that I did not get a ticket, because that would be a waste of money.
Posted by Jeremy - 1 month, 1 week, 4 days, 2 hours ago

Watch out firms in New York City, DC, Chicago, and practically any city in California. You will be hit the hardest by this financial crisis. When push comes to shove, your clients will begin to realize that they can get equally competent legal services for half the price by employing firms in more fiscally conservative states like, for example, Texas. Firms located in states where the tax structure is not designed to suck the life out of businesses will predictably see a high influx of work emanating from the above-mentioned states.
Posted by mark - 1 month, 1 week, 4 days, 1 hour, 49 minutes ago

Ellen, you’re the best. Please keep writing!
Posted by greg - 1 month, 1 week, 4 days, 1 hour, 16 minutes ago

Jeremy: Except that whole ‘have to be licensed in the state you want to practice in’ thing…..not to mention, things in Texas aren’t much better. No income tax, but high sales taxes, property taxes…the government gets its share one way or another…
Posted by Renee - 1 month, 1 week, 4 days, 24 minutes ago

Interesting that DLA Piper’s first response to cost-cutting is to freeze staff salaries, instead of reconsidering the millions they spend on their firm retreat. Yes, I know they are “scaling back” their retreats to every other year, but really…millions to sail a on yacht from Barcelona??? No wonder they have to freeze staff salaries…
Posted by Ellen's boyfriend - 1 month, 1 week, 3 days, 23 hours, 58 minutes ago

Help me . . . please . . . someone . . . .
Posted by The boyfriend - 1 month, 1 week, 3 days, 21 hours, 11 minutes ago

I feel my opinions are often misrepresented on this site.
Posted by Lima Larry - 1 month, 1 week, 3 days, 21 hours, 9 minutes ago

one time my company had me buy a ticket on a aeroplane and i just let it ride over the hill and into the deep wood and i almost got eaten by a bear. but then i asked my boss for a refund - i used a scottish accent even though i am from peru - and he gave me cash on the barrel head and i took that and went to the five and dime and got a stick of bubble gum and a moon pie. but the moral of the story is - if you want something you just have to ask, sometimes you have to ask using a funny voice, but you have to ask. say “gimme more money!“ - thats the way i would do it.
Posted by Scotty O'Shaunassey - 1 month, 1 week, 3 days, 20 hours, 58 minutes ago

Lima - I think you are making fun of Scots and/or Scotland. That’s not nice. When I wear my kilt without anything on underneath it I am careful not to show off the twig & berries - thus proving Scots are decent and honorable. Also, if you say “gimme more money” you should add “please” to that so it is a polite request, not a demand. Oh, and moon pies and RC Cola are super delicious - good point there :) Was the bubble gum you had Bazooka Joe? Do they even have that in Peru?
Posted by Lima Larry - 1 month, 1 week, 3 days, 20 hours, 36 minutes ago

i like to wear a gaucho when i ride across the barranca chasing poncho villa and don key hote. I would never wear a kilt or a cape or a tunic or a turban or fur or an eye patch. i respect all of those things and i like to drink scotch. i agree that you should say “pleeze” but you should say it with a sneer and whilst pointing you finger upwards. i have hubba bubba shipped in by mule (not the donkey - up the chalupa)
Posted by Ellen's EX-Boyfriend - 1 month, 1 week, 3 days, 18 hours, 13 minutes ago

I’m sure that some of you will be quite saddened to hear that Ellen and I have called it quits—actually I made the decision to split with her. The reason? Ellen spends all her time posting her absurd comments on this site and attributing ridiculous comments to me, rather than giving me some good loving.

I recently realized that I have finally had enough of HER, so if she keeps writing about things I’ve said or done, they are complete fabrication. Indeed, I have never spoken to her about my work. I know that, if I did, she would post it on this site. I do respect client and business confidentiality.

By the way, Ellen is not a lawyer, as I am sure many of you have figured out by now. In fact. she is not even a law student. She did attend law school a few years ago, but she dropped out after only a few weeks. Apparently, the reason she dropped out was because she is quasi-illerate. Her profs criticized her from the outset in relation to her strange, random and incomprehensible use of upper-case characters.

For the past few years, Ellen has worked as a photo-copy girl (I mean woman—sorry Ellen) at a small firm in the mid-west. She works part-time, usually afternoons, which is why she can stay up until the early morning hours waiting to be the first to post her comments on this site. All references to her firm, dealing with the managing partner, bonuses, living in New York, etc., are a figment of her vivid (almost schizophrenic) imagination.

In retrospect, I am amazed that I put up with her for as long as I did—172 days. Thankfully, our relationship is now at an end. Hopefully, since she no longer has any reason to write about the things I apparently think or supposedly say to her, her postings on this site will also now come to an end.
Posted by Ellen - 1 month, 1 week, 3 days, 18 hours, 13 minutes ago

Response to #12: Dude Rocco, you just posted that comment on another, semi-related article. I see you leave no stone unturned…
Posted by Ellen Barshevsky - 1 month, 1 week, 2 days, 1 hour, 24 minutes ago

These are NOT proper posts from my boyfriend. My boyfriend and I are doing well, THANK YOU VERY MUCH. He encourages me not to be basheful.

He says some people do not like that I speak my mind. I do NOT put anyone else down however. That is what is more imporatent.

Yes, I do not have the best grammar, but I am working on it, and Yes, I am a member of the bar, so there you have it.
Posted by tom - 1 month, 1 week, 1 day, 2 hours, 4 minutes ago

We are a small firm in the midwest. We are picking up more and more clients on the east and west coast who are looking to cut large law firm costs.

Commenting is not available in this weblog entry.

ABA Journal - Law News Now

Law Practice Management