A Few Good Things about that “Churn, Baby, Churn” Firm

If I were queen at megafirm DLA Piper, I’m not sure I would boast about a film about fraudulent conduct made in-house on my home page, especially if it were titled At What Cost? But I don’t work at DLA Piper, let alone run the place, so I can’t really account for the firm’s tin ear here. Pundits are already wondering why the firm would ever pursue $700 grand in unpaid legal bills from a bankrupt client when there were damning emails in its own ether stating—explicitly—that the firm was in “standard ‘churn that bill,’ baby!” mode.  

Observers can’t help but be curious about why the firm would move forward in that pursuit even after the firm had been disqualified from representing the corporate client in its bankruptcy action thanks to a conflict of interest. That the firm would think that now’s a super-great time to mention that it won an award for making a training video about corruption involving management called At What Cost? is just beyond the beyond.

But let’s not pile on DLA Piper’s very bad week. A few good things about what is no doubt a basically very capable firm have emerged from the mess:

• Maybe no one really noticed that bit about the firm churning bills since it’s spring break/Easter week/Passover.
• The oft-boasted-about “firm collegiality” actually seems to exist at DLA Piper as evidenced by the string of emails from various lawyers supporting the churning guy (Hence, “Yeah Team Tim!”) and email rounds planning an outing after the firm ‘withdrew’ because of its conflict of interest (“Well,the Judge just fired us . . . . Drinks anyone?”).
• The training video looks like it might be pretty good. The teaser is on Youtube. Take a look! You might even leave a comment. Maybe DLA Piper will just dismiss it as another “inexcusable effort at humor.”

Even if DLA Piper recovers its fees, ya just gotta wonder, at what cost?

—Lori Tripoli

 

Should Law Firms Proactively Cut their Fees?

I have to marvel at how some businesses do a phenomenal job measuring their performance, and how some business leaders then seem to hold endless meetings to figure out why their numbers keep going down. Have fewer customers quarter after quarter since, say, 2008? Do all other things remain the same—except there’s a glut of businesses like yours and of workers like those you hire and a lot of your work can be outsourced? Why wouldn’t a leader look to the recession as a likely cause?

I’m not surprised that a recent survey of legal departments by Robert Half Legal lists as one of the top challenges in 2013 controlling outside legal costs. Press Release, Robert Half Legal, Robert Half Legal Research Reveals Top Challenges Facing Legal Departments In Year Ahead (March 13, 2013). What I would like to see is a survey of outside firms indicating how they’re going to help corporate clients do just that. What excess will be trimmed? Will low-level associates be billed out at more reasonable rates? Will overall rates drop? Or will firms just wait until the corporate client looks elsewhere?

Law School, Super Fast

Law360 is reporting that Jacksonville’s Florida Coastal School of Law plans to offer a fast-track program in which students will earn their J.D.s in two years, not three, by taking more credits during the school year and by attending summer school.  Carolina Bolado, Fla. Law School Starts 2-Year JD Program, Law360 (March 8, 2013), http://www.law360.com/articles/422106/print?section=legalindustry. 

Having managed to be on the four-year plan (I attended Georgetown at night while working full-time during the day), I can’t help but be drawn to a deal cutting time on campus in half, sort of. Students still need to complete the same number of credits; they just won’t be taking their sweet time to get to the cap-and-gown part of the process. Florida Coastal’s plan to refund $10K in tuition to students who fail the bar exam the first time out makes the deal even more attractive. Unsuccessful students will get a stipend and additional preparation the second time around, Law360 reports.

Even if tuition remains the same, students will save on room and board via this do-it-faster approach. Committed ones will need to maintain their focus, but turning a three-year slog into two may well boost enrollment by students previously deterred by the lengthy time commitment. Whether a more time-intensive but shorter program will generate better lawyers remains to be seen, but law students may still appreciate the opportunity to earn a fast-track J.D.

—Lori Tripoli