It's Time to Talk Your Clients About Associate Pay: The Morning Minute
The news and analysis you need to start your day.
July 09, 2021 at 06:00 AM
5 minute read
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WHAT WE'RE WATCHING
LET'S TALK ABOUT FEELINGS - Law firms love to tout their teams of "trusted advisors," but if communication is a key element of trust, why aren't more firms being open with their clients? As Law.com's Dan Packel recently reported, too few firms are conducting client feedback interviews and, as a result, are risking their hard-earned relationships with those clients every single day. And, as Law.com's Christine Simmons writes in this week's Law.com Barometer newsletter, that risk is heightened at a time when many firms are tripping over themselves to keep up with their competitors' skyrocketing associate compensation—and looking to jack up rates to cover those costs. It's pretty clear most firms aren't checking with their clients before marching into battle in the associate pay wars. But that could be dangerous—because if there's one thing clients hate, it's surprises. "Those firms that explain their reasoning to clients for associate pay raises—or keeping pay flat—and explain how they could afford any changes are less likely to disrupt client relationships," Simmons writes. "And if they don't explain? It's easy for a GC to try to connect the dots between a firm's pay raise memo leaked to the press and a whopping legal bill." To receive the Law.com Barometer directly to your inbox each week, click here.
BUILDING TENSION - The pandemic has thrown one challenge after another at the construction industry, in many instances causing unexpected delays and price hikes on projects that have led directly to an increase in litigation, including contractual disputes and fraud claims against builders. One industry that may be benefitting from all of this upheaval, however, is alternative dispute resolution, which, for construction defendants, has proven to be a cost-effective and time-saving, well, alternative to litigating in the severely backlogged courts. In this week's Law.com Litigation Trendspotter column, we look at how COVID-19 has thrown several wrenches into the construction industry's best-laid plans over the past 15 months and what that means for the litigators who represent builders moving forward. I'm interested to hear what you think: Will the pandemic's impact on the construction industry continue to drive litigation for the foreseeable future? And, if so, do you foresee more clients opting for ADR over traditional litigation in an effort to save time and money? Let me know at [email protected].
IMAGE TO PROTECT - It seems like (allegedly) bootleg ultrasound machines shouldn't be a thing that exists, but alas: Reed Smith filed a copyright lawsuit Thursday in Illinois Northern District Court on behalf of Philips North America and other plaintiffs. The complaint accuses Avante Ultrasound and other defendants of unlawfully modifying Philips' proprietary ultrasound systems with unlicensed features, and selling them to customers along with unauthorized access keys. Counsel have not yet appeared for the defendants. The case is 1:21-cv-03615, Philips North America LLC et al v. Global Medical Imaging, LLC et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
|- Why Britney Spears Can't Get Out of Her Conservatorship—and Why She's Not the Only One By Katheryn Tucker
- Will President Donald Trump Be Deposed in His Lawsuit Against Big Tech? Attorneys Weigh In By Michael A. Mora
- Am Law Firms Get $210M in PPP Loans Forgiven By Dylan Jackson
- Two Ex-Girardi Keese Lawyers Face Hearing Over Missing Client Payments By Amanda Bronstad
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WHILE YOU WERE SLEEPING
PUBLIC BACKLASH - Beijing's cybersecurity probes into three Chinese tech companies that recently listed in the United States threaten to stem the flow of Chinese initial public offerings in the U.S., hampering the practices of the many global firms operating in Hong Kong and China that rely on IPOs and other capital markets work, Law.com International's Vincent Chow reports. "Data security and data sovereignty have become a growing concern for China," said Yang Zhou, a corporate partner at Zhong Lun Law Firm in Shanghai who specializes in cybersecurity and cross-border investment. "These [Chinese] data-driven companies listing in U.S. capital markets increase those concerns."
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WHAT YOU SAID
"I have appeared multiple times in federal court in California. Before COVID, that would require at least a two-day trip complete with 12 hours of flights. Now, I appear in court literally between meetings. Clients and the court system have taken note of these opportunities for efficiencies and I believe a lot of the virtual landscape will stay intact even after COVID recedes and we return to normal. That will be a boon to working women."
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