Report Says Law Firm Demand Hit New Heights in Second Quarter
Demand for law firms' services in the second quarter of 2018 grew more than in any quarter during the past six years, according to an analysis by Thomson Reuters.
August 14, 2018 at 07:00 AM
3 minute read
Demand for law firms' services grew at a higher clip in the second quarter of 2018 than in any quarter during the past six years, according to a new report from Thomson Reuters that states firms also achieved notable growth in rates and productivity.
Demand for legal services, measured in hours billed, rose 1.4 percent in the second quarter, Thomson Reuters said.
As has been the case for the past few years, the country's largest and most profitable firms, the Am Law 100, experienced the greatest growth in demand, ratcheting up 3.2 percent. That compared to a 0.2 percent decline for the Second Hundred (the sixth consecutive quarter of Second Hundred demand declines) and 1.8 percent demand growth for midsized firms.
Worked billing rates—the invoices that firms send to clients—rose 3.4 percent in the second quarter, marking the fourth consecutive quarter of growth above 3 percent. Am Law 100 firms again led the way with 4.2 percent growth, compared to 2.8 percent growth for the Second Hundred and 3 percent growth for midsize firms.
The upbeat results are in sync with broader reports of a strong U.S. economy, which grew at a 4.1 percent annualized rate in the second quarter, according to the U.S. Department of Commerce. They also continue a prolonged period of volatility in the law firm economy, coming on the heels of an unexpectedly soft first quarter that saw demand drop by 1 percent. On the year, demand is up 0.4 percent, which compares to six-month demand growth in 2016 and 2017 of a mere 0.1 percent.
Productivity ticked up 0.9 percent during the second quarter to bring that metric—the number of hours billed per attorney—to basically flat for 2018. The productivity increase, a rarity in recent years, was mostly due to shrinking or stagnant head count at firms.
Leading the trend in slowing personnel count are midsize firms, which shrunk their attorney rolls by 0.1 percent in the second quarter of this year. Am Law 100 firms grew head count by 1.6 percent in the second quarter, while the Second Hundred grew their ranks by 0.4 percent.
The strength of litigation practices, a segment that has underperformed in recent years, was one surprising note in the Thomson Reuters report. Demand for litigation, which grew 2.2 percent, was higher than any other practice during the second quarter. For the year, litigation demand is up 0.6 percent, marking the first time since 2012 that demand for litigators' time has been positive at the halfway point.
The Thomson Reuters report was cautiously optimistic that 2018 will be a strong year for law firms.
“At the halfway point of 2018, the large law firm market is poised for a potentially strong second half,” the report said. “However, if the past few quarters have taught us anything, it's to expect the unexpected.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllKirkland to Covington: 2024's International Chart Toppers and Award Winners
5 minute readArnold & Porter Matches Market Year-End Bonus, Requires Billable Threshold for Special Bonuses
3 minute readGrabbing Market Share From Rivals, Law Firms Ramped Up Group Lateral Hires
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250