PRESS RELEASE

Wolters Kluwer’s LegalVIEW Insights Report reveals that legal departments can minimize substantial AmLaw rate increases

Data from ELM Solutions’ LegalVIEW database suggests there’s room to negotiate, even amongst the industry’s biggest firms

February 15, 2023 — Corporate legal departments have long regarded the regular substantial rate increases of some of the largest and most prestigious law firms in the United States as an inevitability beyond the reach of negotiations. But a new study featured in Wolters Kluwer ELM Solutions’ ongoing LegalVIEW Insight Report series suggests that in-house legal teams actually hold substantial pricing negotiation power with large and small law firms alike, with even seemingly monolithic firms demonstrating some room for negotiation.

Leveraging the more than $155 billion in legal invoice data used in ELM Solutions’ LegalVIEW database, the LegalVIEW Insights 2023-1 report published this month revealed that approximately 32% of the timekeepers comprising the powerhouse law firms that form the Am Law 100 received no rate increases at all during the period July 2021 to June 2022. Furthermore, approximately 13% of all timekeepers saw the average rate they charge across all clients decrease, a shift that most likely can be attributed to a timekeeper losing a high-paying client or onboarding a new client at a lower rate.

“What this suggests is that timekeepers working at some of the industry’s largest firms are willing to work for less than what many of their clients have already resigned themselves to paying,” said Nathan Cemenska, Director of Legal Operations and Industry Insights at Wolters Kluwer ELM Solutions. “The pricing power wielded by some of America’s largest firms is not immovable, and can be successfully challenged by corporate legal departments willing to adopt a comprehensive approach to better understanding their legal spend and rate management practices.”

Additional highlights from the LegalVIEW Insights 2023-1 report include:

• Rate increases in excess of 10% were achieved by approximately 21% of law firm timekeepers. However, 40% of law firm timekeepers received no increases at all.
• The average rate increase experienced by associates was 62% higher than the rate increase seen by partners, which could reflect in part firms optimizing associate hours and rates in an effort to boost profit margins.
• Rate increases vary widely among business sectors, with financial companies continuing to pay the highest rates of any industry. Law firm timekeepers billing into financial companies in 2022 secured an average rate increase of 5.9% – well over the 2.8% increase they obtained in 2021.

ELM Solutions, part of Wolters Kluwer GRC, is the market-leading global provider of enterprise legal spend and matter management, contract lifecycle management and legal analytics solutions. The company provides a comprehensive suite of tools that address the growing needs of corporate legal operations departments to increase operational efficiency and reduce costs. Corporate legal and insurance claims departments trust its innovative technology and end-to-end customer experience to drive world-class business outcomes.

Wolters Kluwer ELM Solutions was named a leader in both the IDC MarketScape: Worldwide Enterprise Legal Spend Management 2020 Vendor Assessment and IDC MarketScape: Worldwide Enterprise Matter Management 2020 Vendor Assessment. The company’s award-winning products include Passport®, one of the highest rated ELM solutions in the latest Hyperion MarketView™ Legal Market Intelligence Report and TyMetrix® 360°, the industry’s leading SaaS-based e-billing and matter management solution. CLM Matrix, meanwhile, was named a “strong performer” in The Forrester Wave™: Contract Lifecycle Management For All Contracts, Q1 2021 report. ELM Solutions’ LegalVIEW® portfolio of legal analytics solutions is based upon the industry’s largest and most comprehensive legal spend database, with more than $155 billion in invoices.
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About Wolters Kluwer

Wolters Kluwer (Euronext: WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

Wolters Kluwer reported 2021 annual revenues of €4.8 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 20,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Twitter, Facebook, and YouTube.

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Frank Ready
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Wolters Kluwer
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Katten announced today the launch of its ESG Risk and Investigations practice led by partners Johnjerica Hodge and India D. Williams. The two will leverage their considerable experience in environmental, social and governance (ESG), corporate compliance and internal investigations to further build on the firm’s capabilities in the ESG space, which focuses on adopting environmental and social policies that promote sustainability and mitigate risk in a manner that creates long-term value for clients and investors.

“We are excited to welcome India to Katten, to work alongside Johnjerica in leading this essential practice area for Katten and our clients,” said Katten Chairman Roger P. Furey. “As ESG issues are becoming more and more important, we are pleased to be further developing this growing practice area that will benefit a great number of our clients.”

Katten’s ESG practice addresses the myriad of white collar, compliance, corporate and insolvency needs public and private companies in the United States and abroad have. Specifically, firm attorneys help companies identify their ESG-related risks, establish the necessary policies and procedures to establish or enhance their ESG programs, and provide in-depth, independent assessments of their impact on, among other things, racial equity, civil rights, human rights, workplace culture and gender pay parity.

“As a legal partner to our clients, the Katten team proactively identifies potential ESG issues before they arise. A savvy offensive strategy reduces risks and lowers legal spend, but we also know how to play defense as well, so if an ESG issue emerges, we want to be our client’s first call,” Williams said.

Williams, who joined Katten last week from Kirkland and Ellis, has deep experience in negotiating high-dollar finance deals, handling white collar investigations, and advising corporate and capital markets clients on ESG enforcement actions, Nasdaq board diversity litigation, and climate change regulations. Last year, she was a keynote panelist and spoke at a roundtable on ESG & Racial Equity Audits at the Driving Diversity in Law & Leadership Conference.

Hodge and Williams are co-authoring a book on ESG slated to be published this year. Both have received certificates from the Wharton School of the University of Pennsylvania after completing programs on “ESG Risks and Opportunities” and “ESG and Social Activism” as well as from University of California, Berkeley, School of Law on “Sustainable Capitalism and ESG.” The two recently taught a course together as adjunct professors at the University of Alabama School of Law, their alma mater, that focused on the role of racial equity audits in the ESG movement. They are scheduled to team up again on another course, “ESG: Human Capital Management and Racial Equity Audits,” at George Mason University’s Antonin Scalia Law School.

“We intentionally created a group that is diverse in so many ways: race, gender, age and experience. Because of that diversity, we understand the social issues and business implications our clients face. When you combine our diversity with our focus on the breadth of issues within the purview of ESG, we are poised to handle the range of ESG needs our clients face — both now and in the future,” Hodge said.

In addition to Hodge and Williams, the cross-functional ESG Risk and Investigations team includes Gil M. Soffer, Litigation department co-chair, former federal prosecutor, senior DOJ official, and member of the Racial Justice Diversity Committee for the US District Court for the Northern District of Illinois; Leslie D. Minier, Chief Diversity Partner and founder of the firm’s diversity committee; Danette R. Edwards, a Securities Litigation partner and former Senior Counsel in the SEC’s Enforcement Division; and a deep bench of other Katten attorneys who concentrate on white-collar defense, internal investigations, appellate litigation and regulatory compliance.

This practice will complement services the firm already provides to clients in monitoring regulatory and enforcement trends related to ESG, working with asset managers to integrate ESG considerations into fund structures and strategies, creating and bolstering diversity, equity and inclusion (DEI)-focused programs, and counseling on board composition and other corporate governance matters.

Katten is a full-service law firm with approximately 700 attorneys in locations across the United States and in London and Shanghai. Clients seeking sophisticated, high-value legal services turn to Katten for counsel locally, nationally and internationally. The firm’s core areas of practice include corporate, financial markets and funds, insolvency and restructuring, intellectual property, litigation, real estate, structured finance and securitization, transactional tax planning, private credit and private wealth. Katten represents public and private companies in numerous industries, as well as a number of government and nonprofit organizations and individuals. For more information, visit katten.com.

Clausen Miller is continuing its expansion in Texas with the opening of a Dallas office. The news comes on the heels of the firm launching a Houston office in August 2022 with Ramy Elmasri serving as the Texas managing partner, and is further evidence of the firm executing its strategic plan to deepen its bench in the Southwest.

This latest office – Clausen Miller’s 12th worldwide – will service clients and expand the firm’s service offerings in insurance coverage, litigation defense, appeals, subrogation, and technology and cyber law. The new office will be located at 325 N. Saint Paul Street in Dallas.

Attorney Ron Burnovski, who has a long history of insurance defense victories in Texas, California and New York, all states in which he is licensed, joins the new office.

“After launching our Texas presence in Houston last year, it became clear that our firm’s way of partnering with clients resonated with insurance carriers and businesses in the Lone Star State, and we moved quickly to meet their needs,” said Dennis Fitzpatrick, Clausen Miller President & CEO.

“We are delighted to have Ron in Dallas as we continue expanding in strategic markets to better serve our clients,” said Texas Managing Partner Ramy Elmasri.

A trusted advisor to insurance carriers in all stages of claims litigation, Ron focuses his practice on first-party coverage, managing all manner of claims from those involving pandemic-related business interruption to weather to construction defect.

“Clausen Miller has a tremendous reputation across the country, and it’s truly remarkable how the firm’s success in Houston over the past six months inspired the opening of an office in Dallas today. I am delighted to spearhead the office and look forward to recruiting new talent in Dallas while servicing clients in the Dallas market and beyond,” said Ron.

Clausen Miller is an insurance and defense law firm recognized as one of the top 10 Insurance Practice firms in the nation. Clausen Miller has offices in Chicago, Illinois; New York, New York; Orange County and San Francisco, California; Florham Park, New Jersey; Michigan City, Indiana; Appleton, Wisconsin; Stamford, Connecticut; Tampa and Boca Raton Florida; Dallas and Houston, Texas; and London, England with affiliates located in Belgium, France, and Italy. Clausen Miller represents large commercial and personal lines insurance carriers, including reinsurers, throughout the United States and in Europe. Clausen Miller’s attorneys generally practice in all areas of Insurance Coverage, all areas of Professional Liability and Casualty Defense, Subrogation, and Appeals.

Washington, DC – February 13, 2023 – Difede Ramsdell Bender (DRB) is pleased to announce that member and co-founder Joseph “Joe” E. Bender has been appointed to the Internal Revenue Service Advisory Council. During his three-year appointment, Joe will advise the IRS’s Tax Exempt Organizations and Government Entities (TE/GE) Division.

The IRS Advisory Council serves as an advisory body to the Commissioner of Internal Revenue and addresses matters concerning tax-exempt organizations and government entities with the Commissioner. The Council also provides an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public. The Council proposes enhancements to IRS operations; recommends administrative and policy changes to improve taxpayer service, compliance and tax administration; discusses relevant information and reporting issues; and conveys the public’s perception of professional standards and best practices for tax professionals.

During his tenure on the Advisory Council, Joe will continue his practice with DRB. For nearly 30 years, Joe’s practice has focused on federal and state tax law, the last fifteen of which have concentrated on investments (both leveraged and unleveraged) by tax-exempt organizations including pension funds, university and educational organizations, and medical and religious organizations. Joe advises on various tax issues arising from these investments, including unrelated business income tax (UBIT) and unrelated debt-financed income (UDFI), as well as tax issues involving real estate investment trusts (REITs).

About Difede Ramsdell Bender

DRB is a boutique law firm representing institutional clients in complex commercial real estate transactions, private fund formation, tax structuring, compliance and general corporate matters.

DRB attorneys hail from highly regarded national firms with the goal of delivering excellent counsel and representation to a select group of clients. The firm prides itself on the decades-long relationships that stem from providing representation that protects and advances clients’ interests in an effective and efficient manner.

For further information, contact Joe Bender at 202-534-3230 or Jbender@drbl-law.com.

Difede Ramsdell Bender (DRB) is expanding its platform with the opening of a New York City office. The office is spearheaded by veteran attorney Lawrence J. “Larry” Hass who joins the firm as a member and will lead DRB’s New York-based real estate investment funds practice. He joins the firm from Paul Hastings, where he was a senior partner in the firm’s global private investment funds practice for more than 30 years.

“For nearly a decade DRB has served national sponsors and institutional investors in commercial real estate transactions and helped clients create, structure and negotiate private investment funds from our Washington, DC office,” said James R. Difede, managing principal of DRB. “Establishing a presence in New York will allow us to better serve those clients from a major financial market and look to additional growth opportunities. We are thrilled to have Larry leading that effort for the firm.”

At DRB, Larry will concentrate his practice on assisting clients in the structuring, formation and offering of investment funds, and the management, operation and regulatory compliance of those funds. Prior to private practice, Larry served in several federal government positions. He was an attorney at the U.S. Securities and Exchange Commission, assistant counsel for Fiduciary Responsibility in the Solicitors Office of the U.S. Department of Labor and special assistant to the Assistant Secretary of the Pension and Welfare Benefits Administration at the U.S. Department of Labor.

“With strong roots in DC and New York and an outstanding national reputation, Larry is the ideal lawyer to launch our entrance into the New York market,” said Catherine Groves Ramsdell, member of DRB. “Larry’s significant experience in private real estate investment fund formation, as well as his in-depth knowledge of pension fund regulation and securities laws, will be especially valued by our clients.”

“We have worked with Larry for a number of years, and I welcome both his technical expertise and his practical approach that will be a fitting addition to the Firm,” added Joseph Bender, member of DRB.

“I have co-counseled with DRB on numerous matters over the years and have always been impressed with the quality and sophistication of their work. DRB is a hidden gem combining real estate transactional and investment fund practices on par with the largest law firms with the high-touch client service of a boutique,” Larry said. “When considering how best to continue to serve my clients and to carry my practice into the future, DRB was a natural fit.”

Committed to growing, developing and diversifying the real estate investment community, Larry serves as legal counsel of the Pension Real Estate Association (PREA) and is a past member of its Board of Directors. Additionally, he is a founding member and legal counsel for the PREA Foundation.

About Difede Ramsdell Bender

DRB is a boutique law firm representing institutional clients in complex commercial real estate transactions, private fund formation, tax structuring, compliance and general corporate matters.

DRB attorneys hail from highly regarded national firms with the goal of delivering excellent counsel and representation to a select group of clients. We pride ourselves on the decades-long relationships that stem from providing representation that protects and advances clients’ interests in an effective and efficient manner.