Small firm advantages are numerous.
Recently, former VP/Global Head of Legal at eHarmony, Antone Johnson, tackled the question: “Why Are Lawyers So Expensive Even With The Excess Supply Of Lawyers?” Mr. Johnson’s focus was on why large law firms charge their very high rates. Significantly, and not surprisingly, top-notch work quality, dedication, and responsiveness (three important aspects of my practice) were not listed.
Classic lose-lose situation. Mr. Johnson dissected how most large law firms are obsessed with rankings, have huge overhead, and grapple with other aspects of the legal industry that cause their fees to skyrocket. He also reflected that many companies are “fed up with large firms’ endlessly escalating billing rates and cost insensitivity.” As he pointed out, the result is that the legal services industry now has “overpriced lawyers sitting around doing nothing, and clients not getting served because they can’t afford those rates. Classic “lose-lose” situation.”
Obvious win-win or slam dunk. Importantly, Mr. Johnson acknowledged that there are alternatives. He noted that “many talented, experienced lawyers hav[e] left big firms , and technology mak[es] it easier than ever to set up shop as a new solo practice or small firm…” Indeed, business models like mine provide a better alternative for clients who no longer want to (or can no longer afford to) pay large firms for everything except top-notch work quality, dedication, and responsiveness. Mr. Johnson calls such business models “such an obvious win-win — or slam dunk.”
- If your company still depends on large law firms for employment/HR related issues, I personally invite you to discuss with me how large law firm “escapees,” like me, are able to provide top-notch service without worrying about firm overhead, rankings on the AmLaw100, or carrying the dead-weight of an under-performing practice area.
- If your company still believes great lawyers are too expensive, and thus, unaffordable, I personally invite you discuss with me how I can help your company at rates much lower than you might think.
Whatever situation your company is in, do not overpay for, or put-off getting, the legal services your company needs. For example, there is usually no good reason to pay (or to delay in fear of) large firm rates to have your company’s Handbooks, policies and employment/severance/confidentiality agreements updated and compliant. Do not overpay for, or put-off, getting advice on tricky employment/HR issues, getting and keeping your company in compliance with wage and hour laws, dealing with social media in employment issues, and getting mandated training done for your employees. And certainly, do not overpay, or go unrepresented, when your company must defend against claims brought before administrative agencies and courts. Indeed, I will be the first one to tell you if your matter would be better served by having a large law firm on your side (perhaps, for example, in defending class actions).
Mr. Johnson’s article in Forbes can be found here.