LexisNexis has begun notifying Lexis.com customers that it will be shutting down the legacy legal research service over the next 12 months and moving them to the newer Lexis Advance research platform, according to a post on Law Sites by Robert Ambrogi.

“It was five years ago this month that LexisNexis formally launched Lexis Advance as its next-generation research service,” writes Ambrogi. “Since then, the company has continued to build out and refine the newer platform, including rolling out a major redesign of it two years ago.”

Because many lawyers stayed with the older, familiar system, LexisNexis has been maintaining two separate systems with different architectures. Ambrogi writes that the company could substantially cut costs and gain efficiency by shutting down the older system.

Read the Law Sites article.

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Law firm partners have figured out how to increase profits per partner in the face of a declining demand. Firms, on the other hand, have an unsustainable model that remains largely intact even as clients are seeking options, writes Mark A. Cohen for Forbes.

He sees the explosive growth of in-house legal departments as possibly the biggest impact of the fiscal crisis.

“It’s easy to dismiss ‘insourcing’  legal work as labor arbitrage. But the more fundamental reason for in-house growth is law firms’ inability to deliver legal expertise and value — as well as to integrate technology and process in delivery. The value deficiency is linked to the traditional firm model and culture,” he writes.

He lists some of the reasons corporate legal departments now comprise about 45 percent of total legal spend.

Read the Forbes article.

Legal profession guru Brad Hildebrandt, CEO at Hildebrandt Consulting, says law firm associates shouldn’t be overly worried by their firms’ lackluster revenue growth in 2016, even though revenue growth could stay modest in 2017.

Hildebrandt shared his thoughts with Bloomberg Law following the release of a report from in Citi Private Bank Law Firm Group and Hildebrandt Consulting, which analyzed a Citi survey of about 200 U.S. law firms about their revenue growth and demand this year.

“With capital markets starting to pick up, and a change in the presidential administration, ‘depending how it all sets up,’ there could be a flood of initial public offerings and transactions that spur an increase in demand for law firms’ services,” writes Bloomberg’s Gabe Friedman.

Read the Bloomberg article.

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Spending some time in the next few weeks planning for business development in 2017 can pay big dividends, advises Bruce Vincent of Muse Communications, a marketing company for lawyers and law firms.

In a post on the company’s website, he writes that something as simple as paying attention to the calendar and keeping an eye on local news can be an effective way to promote your legal practice in 2017.

Under the heading “Low-Hanging Fruit,” Vincent discusses the value of being named to “best” lawyer lists. “The key is making sure that clients know about your professional recognition, and the first step is knowing how to be considered for these honors,” he writes.

And under the heading “Make Yourself a Media Expert,” he gives advice on how to be featured as an “expert” in a particular legal field and be quoted on television or in print.

“One easy way is to stay in tune with the news of the day and find popular storylines that dovetail with your practice. The idea is to eventually make yourself available for media interviews the next time a reporter needs an expert source,” he writes.

Read the article.

Biglaw’s compensation leader, Cravath Swaine & Moore, announced its 2016 year-end bonuses for associates this week, and the list has a familiar look, reports Above the Law.

“But there is, of course, one huge difference: back in June, Cravath raised base salaries for its associates, a move that led dozens of firms around the country to hike associate pay,” writes David Lat.

He added announced bonuses to new salaries and concluded that a first-year associate at Cravath will earn around $180,000 in total compensation.

“At the top of the scale, an eighth-year associate will earn almost $400,000 in total compensation ($280,000 for the first half of the year, $315,000 for the second half of the year, and $100,000 in bonus money), up from $380,000,” he writes.

Read the Above the Law article.

Atlanta-based Sutherland Asbill & Brennan is in merger discussions with Eversheds of London, the firms announced on Tuesday, reports Bloomberg Law.

The proposed merger could result in a law firm with more than 2,300 lawyers in 31 offices across 29 countries, the firms said in a joint statement. The merged entity would have revenue of more than $900 million, putting it into the top 40 law firms in the world, by revenue.

Bloomber described the announcement as depicting the discussions as being in an advanced, yet incomplete stage. It said that both firms have presented the proposed combination to their partners, who will likely vote on the deal before year-end.

Read the Bloomberg article.

The Fort Worth Star-Telegram is reporting that Shannon Gracey Ratliff & Miller, one of Fort Worth’s storied law firms for more than 80 years, is shutting down at the end of the year, according to court records.

“The partners recently voted to dissolve at the end of 2016, and several of its attorneys are leaving to join other firms or start new ones, according to court records and interviews with those familiar with the situation,” reports Max B. Baker.

Some Shannon Gracey lawyers already have formed new firms or joined other Texas firms. The firm’s website lists about 30 lawyers now, with offices in Fort Worth, Dallas, Arlington, Austin, Houston and Rhome.

Wells Fargo Private Bank’s Specialty Group released a report on how law firms performed in the first nine months of 2016, with the report’s authors finding a decline in demand across all timekeepers, according to an article published by Bloomberg Law.

Lawyers’ rates increased by 3.6 percent, with an expected hike of another 4.4 percent coming the following year.

In an interview, Joe Mendola, senior director of sales at Wells Fargo Legal Specialty Group, drilled down into what the catch was for the industry.

Among the findings:

• The richest firms are also the busiest, with partners are projected to log an extra 100 hours this year compared to everyone else.

• There has been a decline in productivity this year.

• With demand flat or declining, law firms are raising rates to keep growth strong — and to pay for higher associate salaries.

Read the Bloomberg article.

By Laura Drossman
Drossman Law

Laura Drossman

Complying with the California Rules of Professional Conduct can be challenging enough for an attorney, but issues can become even more complicated if you are also practicing a dual profession. Engaging in a second occupation may appeal to some attorneys (especially solo practitioners who may enjoy more flexibility in their practice) as they can draw on their legal experience in performing such service, diversify their revenue stream, or sow long-lost creative oats. But lawyers must always consider the practical and ethical challenges involved with actively practicing dual occupations.

Subject to certain restrictions, California state ethics rules generally permit California attorneys to engage in the practice of law and a second occupation. This issue has been addressed by the state bar’s Standing Committee on Professional Responsibility and Conduct in several opinions.¹ Engaging in dual professions may carry traps for the unwary lawyer, however, as such conduct may conflict with a lawyer’s duties of confidentiality, loyalty, and/or violate the Rules of Professional Conduct, which govern an attorney’s actions at all times.

Providing non-legal services to a client is considered a business transaction, but one that creates actual and potential conflicts of interest. A client for whom a lawyer provides non-legal services is nonetheless considered a legal client with respect to the applicability of the Rules of Professional Conduct. Therefore, prior to entering into any such transaction, the attorney must determine all actual and potential conflicts, and if such conflicts are waivable. If so, the attorney must disclose the conflicts and risks and obtain written client informed consent and waiver. If not, the attorney must forego the deal.

Conflicts present even greater risk where attorneys perform “law-related” occupations, such as real estate brokerage or financial services to non-legal clients. In those situations, the lawyer is bound by the Rules of Professional Conduct as well as the rules and regulations governing the second occupation, and is responsible for reconciling the two. This can be challenging and potentially impossible where, for example, a lawyer providing real estate brokerage services must reconcile his or her duty to keep all information relating to the representation of a client confidential with the robust disclosure obligations imposed on brokers by the Bureau of Real Estate regulations.

An attorney must continue to comply with the Rules, even in promoting their second occupation. Advertising for the provision of non-legal services that imply clients will benefit from the attorney’s legal expertise is governed by the Rules of Professional Conduct and must conform to all rules governing lawyer advertising. Further, lawyers must be careful to not use their side occupation as a way to solicit legal clients in a manner that may violate the rules prohibiting in-person solicitation.

Finally, in structuring partnership or other shared business arrangements for non-legal deals, lawyers must be sure they maintain full control over their legal practice, and avoid any sharing of legal fees.

Footnote
1. California State Bar Formal Opinion Numbers 1982-69, 1995-141 and 1999-154.

Laura Drossman is the principal attorney at Drossman Law, a real estate and business law firm based in San Francisco. She is also a licensed real estate broker.

In the months since Cravath Swaine & Moore hiked starting salaries for first year associates by 11 percent to $180,000, law firms across the country raised their associate compensation scale to match — and now those pay increases are showing up as profit growth slows at some law firms, according to a new report on the first three quarters of 2016 compiled by Citi Private Bank.

“This is the first quarter we have an opportunity to see that,” David Altuna, a senior vice president and client adviser in the Citi Law Firm group, told Bloomberg Law.

“Altuna said that the associate salary hikes, which started in July and continued to spread during the summer, are causing expenses to grow faster across the industry,” writes Gabe Friedman. “While the most elite firms have been able to grow revenues faster than expenses, all other firms felt the strain of high lawyer compensation expenses.”

Friedman provides a transcript of his interview with Altuna.

Read the Bloomberg article.

Dallas litigation boutique Estes Thorne & Carr PLLC has been recognized among the 100 largest women-owned businesses in North Texas by the Dallas Business Journal.

One of only two law firms to be included in the 2016 Top 100, this is the first time Estes Thorne & Carr has earned recognition, debuting at No. 58. When founded in 2008, the firm was among only a handful of women-owned law firms in Dallas and has since grown to be one of the largest and most respected in Texas.

“Some clients may come to us because we are a women-owned firm, but we’ve built lasting relationships based on the quality of our work and our dedication to seeing the client succeed,” said managing partner Jessica Thorne. “We are exceptionally proud of the accomplishments of this firm and that we have built a reputation as one of the leading litigation firms in North Texas on the basis of the work we do.”

Read the release.

U.S. District Judge Gonzalo Curiel

The U.S. judge overseeing a lawsuit against President-elect Donald Trump and his Trump University told both sides they would be wise to settle the case “given all else that’s involved,” Reuters reports.

In the suit, some former students claim they were they were lured by false promises to pay up to $35,000 to learn Trump’s real estate investing “secrets” from his “hand-picked” instructors.

The statement by U.S. District Judge Gonzalo Curiel came after he had tentatively rejected a bid by Trump to keep some statements from the presidential campaign out of the fraud trial.

“Trump owned 92 percent of Trump University and had control over all major decisions, the students’ court papers say. The president-elect denies the allegations and has argued that he relied on others to manage the business,” according to the report by Dan Levine and Karen Freifeld.

Read the Reuters article.

Two prominent law firms, Arnold & Porter and Kaye Scholer, winding up months of talks, announced on Thursday that they would combine to become a firm with more than 1,000 lawyers effective Jan. 1, The New York Times is reporting.

Reporter Elizabeth Olson writes that the new firm will be called Arnold & Porter Kaye Scholer.

“The combination was not a surprise. Each firm brings complementary expertise — Arnold & Porter is a litigation and regulatory issues powerhouse in Washington, and Kaye Scholer, based in New York, which is almost half the size of Arnold & Porter, is best known for its financial services and life sciences work. At each firm, however, the revenue and profit per partner has been buffeted in the changing legal landscape,” Olson reports.

Read the article on The New York Times.

Some women who filed gender discrimination claims against their law firms all said they were alienated to varying degrees for speaking out and taking action about what they experienced, according to a report by Bloomberg Big Law Business.

One of those interviewed, Kamee Verdrager, was an associate at Mintz Levin Cohn Ferris & Popeo when she sued the firm on claims of gender bias in 2009.

“Verdrager said Mintz Levin made specific efforts to discredit her after she filed her suit accusing them of demoting and then firing her because of her gender,” writes Stephanie Russell-Kraft. “Among other things, Verdrager alleges a male partner made sexually explicit comments toward her, and that she later received negative performance reviews because of a pregnancy.”

After firing her, Mintz Levin reported Verdrager to the Massachusetts Board of Bar Overseers for allegedly downloading private firm documents, but the board unanimously cleared her.

The article discusses the cases of other women who had similar experiences.

Read the article.

A small law firm that has given money to Sen. Elizabeth Warren, Sen. Harry Reid, President Obama and many others is accused of improperly funneling millions of dollars into Democratic Party coffers, according to a report by the Center for Responsive Politics and the same team of Boston Globe investigative reporters featured in the movie “Spotlight.” CBS News summarized the report.

With only 10 partners, the Thornton Law Firm — dollar for dollar — is one of the nation’s biggest political donors, reports CBS News correspondent Tony Dokoupil.

“But according to the firm’s own documents – leaked by a whistleblower — days or even hours after making these donations, partners received bonuses matching the amount they gave,” according to the report.

The CBS report continues: “A Thornton spokesman said the bonuses are legal because they came out of each partner’s ownership stake in the firm. In other words, they were paid with their own money.”

Read the article.

For the fifth consecutive year, Farrell Fritz has received a Tier 1 Ranking by Best Lawyers. The listing will be in the 2017 Edition of U.S. News – Best Lawyers’ “Best Law Firms.”

Farrell Fritz has been ranked as a Tier 1 firm on Long Island in Employment Law – Management, Litigation – Trusts & Estates and Trusts & Estates Law. The firm been ranked as a Tier 2 firm on Long Island in Health Care Law and Real Estate Law.

Rankings were derived from a combination of our clients’ feedback, peer review ratings and the information we provided in response to the Best Lawyers Law Firm Survey.

The woman partner who filed a gender discrimination class-action against Chadbourne & Parke leveled new accusations in an amended complaint on Thursday, including that the firm’s head of litigation placed a cartoon of a fat man in a bowler hat on her wall and took a postcard from her office, reports Bloomberg Law.

The complaint includes new allegations from former partner Jaroslawa Z. Johnson who is joining current partner Kerrie Campbell as a named plaintiff in the suit. Johnson ran the firm’s Kiev office for nearly 10years.

Reporter Stephanie Russell-Kraft writes that the complaint also adds six individuals as named defendants, including Abbe Lowell, the head of litigation based in D.C., and four members of the management committee — Andrew Giaccia, the firm’s managing partner; Lawrence Rosenberg, Howard Seife, and Paul Weber, who are all located in New York City. Marc Alpert, a former member of the management committee, is also named as a defendant.

Read the article.

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A prominent New Jersey lawyer who specializes in elder care law was arrested on Tuesday and charged with stealing more than $1 million from some of his clients, reports NJ.com.

Charges against Robert Novy of Novy & Associates in Manchester involve his handling of funds of some of his clients, state Attorney General Christopher Porrino said.

According to Porrino, Novy, who had his own radio show on topics of interest to senior citizens, is accused of stealing $1.2 million between 2010 and 2015 from at least four people, some of whom suffered from Alzheimer’s or did not have or close relatives to keep track of their funds, repots MaryAnn Spoto.

Read the article.

Global law firm Hogan Lovells and Fujian Fidelity Law Firm have entered into a formal association in the China (Shanghai) Free Trade Zone.

This move reflects the firm’s growth strategy in Asia and the importance of the region to many of the firm’s global clients, the firm said in a release.

The release continues:

Fidelity was established in 1989 and is one of the largest law firms in the Fujian province. The firm has around 170 lawyers and covers a wide range of legal services, but has a particularly strong track record in corporate and M&A, insolvency and liquidation, financial securities, real estate and construction, and arbitration and litigation work. They currently have seven offices, including the one within the Shanghai FTZ. Hogan Lovells partners Andrew McGinty and Zhen (Katie) Feng will be leading the relationship with Fidelity and the promotion of the joint services from the two firms to clients.

Hogan Lovells has been actively following recent developments in the Shanghai FTZ and is only the third international law firm to enter into an association in the Shanghai FTZ.

Patrick Sherrington, Asia Pacific and Middle East Regional Managing Partner, said: “This is an exciting time in Asia. The establishment of the China (Shanghai) Free Trade Zone by the Chinese government and the implementation of the new rules allowing foreign law firms in China to team up with a Chinese firm have dramatically changed the landscape. We see the association as a value driver for many of our clients whose needs are increasingly complex in this market. Multinationals have been quick to demonstrate their interest in the industry-specific liberalization policies within the Shanghai FTZ, while other investors have been drawn in by the simplified approval procedures. We look forward to serving these and other international and local clients, particularly those seeking to invest overseas. Fidelity is a high quality, innovative and well-respected firm.”

Steve Immelt, CEO of Hogan Lovells added: “Asia is critical to our global strategy and the Shanghai FTZ offers an exciting opportunity to expand our service offering in the region. The landscape is moving quickly there – so we need to be on the ground to cater for the increasingly complex needs of our clients in this market. We are excited about the prospects of our collaboration with Fidelity.”

Wang Ping, Managing Partner at Fidelity’s new Shanghai FTZ office, added: “We’ve been looking forward to this moment for quite some time. As Fidelity has been entrenched in Fujian for many years, the establishment of a branch in the Shanghai Free Trade Zone—the most important commercial center in the country—is our first foray outside of the Fujian Province. This is a critical step toward Fidelity becoming a large and significant national firm. We are very honored to be launching an association with Hogan Lovells, as we’ll be able to draw on each other’s strengths to fully realize our potential and to offer our clients a high-quality, professional, and seamless service. Furthermore, the association will give Fidelity even more opportunities to learn from a large, global law firm like Hogan Lovells and allow us to grow. We firmly believe that the association between Fidelity and Hogan Lovells will be a success, and will serve as an exemplary collaboration between a Chinese and foreign law firm.”

Bloomberg Big Law Business is reporting that male partners in Big Law are still out-earning their female counterparts by 44 percent, according to the results of a survey published Wednesday by Major, Lindsey & Africa.

The poll of 2,153 partners showed that men earned an average of $949,000 per year while women brought in $659,000.

Men’s billing rates averaged $701, while women billed at an average of $636, the poll round. Hours billed were close for both groups: 1,703 for men and 1,632 for women.

“But the results show women still lag behind significantly in originations, pulling in an average of $1,730,000 versus $2,590,000 for men,” writes Bloomberg’s Stephanie Russell-Kraft.

Read the article.