| Hank Chinaski |
05-22-2009 12:48 PM |
Re: Is this the new law firm model?
Quote:
Originally Posted by sebastian_dangerfield
(Post 390954)
Uh, they are being implemented. You have friends who are GCs. Ask them how many litigation groups they've been firing or demanding steep discounts from right now. A good friend of mine at a huge purchaser of litigation services (big company with loads of plants, labor issues, etc) has been finding that he and the other associate GCs save the company tons doing most stuff in house. Only problem has been getting GCs to embrace it, as many of them don't want to get too hands on. But the economy's been changing that reluctance. He hires smaller local firms in the areas where the company gets sued and has been happy with the outcome and responsiveness so far.
I never understood why legal purchasers didn't shop more in the past. When you get sued in bumblefuck county on a contract issue or some moderate risk piece of negligence, you don't go and hire a big litigation firm. All they do is get local counsel with influence and you wind up getting billed twice. The better course is to go with the best local counsel in town. How much research would that take? Couple days? Maybe flying down and trying him and his firm on for size?
I guess the risk is if the guy turns out to be a fuck-up, the assoc GC who lobbied to hire him takes a load of shit from above. Hence, again, the stumbling block to any change in the way we do business: Fear Of Risk.
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if I was GC at a big place the deal i would cut is one a CarCo and a big bank worked out with my prior firm- Firm will handle all X work for $Y/year.
We handled all enviormental, reg and lit, for CarCo and all work of all sorts for a big bank. the firm was paid $5 million and $10 million for the tasks. Some files blew up, some died, but over all the firm did well. One thing the companies really want is predictability, and this is the perfect model. For it to work the client needs to be huge so that the risks are spread over enough files.
BUT the people who got fucked were the worker bees- the billing attorney now effectively sat as an equivalent to GC- "Associate, here is this file. You need to handle it and get it done within my budget of $15K."
Billing guy no longer was on the side of the associate who got hours in by wheel spinning. When a file blew up the associate got screwed and ate time- oh, and the "payback" from when a second file died quickly? Billing attorney took the credit for that budgetted money.
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