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WHAT WE'RE WATCHING

HARD CHARGING -  It's becoming clear that 2021 is going to be another profitable year for law firms. But there are still questions. Namely, how much of that growth is due to another round of rate increases? And how much higher can those rates tick up before they start ticking off clients? As Law.com's Andrew Maloney reports, some analysts say a full pipeline, along with new clients and new work means rate hikes can continue unabated for the foreseeable future. But there is some evidence that clients could be nearing their breaking points. "Corporate America has not had a cataclysmic year, but the revenues and therefore the budgets that corporate America can spend on outside counsel have generally not increased at the levels that the law firms are increasing their rates," Jason Winmill, a managing partner at Argopoint who advises corporate legal departments, told Maloney. "And that continues to exacerbate an ongoing tension between in-house counsel and even their most trusted outside counsel."

THE HAPPIEST PLACE ON EARTH? - The drama playing out among The Walt Disney Co.'s high-level execs right now is decidedly not family-friendly. CNN recently reported that Disney's GC and executive VP Alan Braverman was "upset" with ABC News president Kim Godwin. Why? Godwin called for an independent probe of the company's handling of sex assault allegations against former "Good Morning America" senior executive producer Michael Corn.  If Braverman is, in fact, ruffled, it could be because he and other Disney executives had already decided how they wanted to handle the allegations against Corn before Godwin, who joined the company about six months ago, spoke out, corporate investigations lawyer Matt Boxer told Law.com's Phillip Bantz. "When you see this reaction from the GC, the first question in my mind is, 'What went on before the new president got there?' There may be some history that has made the GC feel like they have their arms around this and then this new person comes in with a different approach," Boxer said, adding that Braverman could now be backed into an awkward and potentially dangerous corner. "It's now a very delicate situation for the general counsel. There's a risk that if the GC doesn't handle the situation carefully they could end up being accused of trying to sweep this under the rug," Boxer said.

FOMOCON - Akin Gump Strauss Hauer & Feld sued the U.S. Small Business Administration and its administrator, Isabella Casillas Guzman, Thursday in District of Columbia District Court on behalf of MomoCon LLC, an Atlanta-area concert promoter. The suit pursues APA claims in connection with the agency's denial of emergency federal financial assistance amid the COVID-19 pandemic. The case is 1:21-cv-02386, Momocon, LLC v. Small Business Administration et al. Stay up on the latest deals and litigation with the new Law.com Radar.  

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EDITOR'S PICKS

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WHILE YOU WERE SLEEPING

X FACTOR - Cleary Gottlieb Steen & Hamilton is launching its own legal tech incubator, with a former Epiq executive based in Canada spearheading the company, Law.com International's Gail J. Cohen reports. Canadian attorney Carla Swansburg is the CEO of the new Cleary X, which the firm describes as "an experimental platform for highly efficient, AI and data-driven legal services." Cleary X, which will be a wholly owned subsidiary of the global law firm, will initially focus on supporting and streamlining Cleary's M&A due-diligence work. It will then expand into additional corporate workstreams. Swasnburg said that early on, it will include AI tools such as automation platforms and workflow tools, as well as some fundamental technology platforms and processes. "Carla has a deep understanding of the legal technology landscape and how to help law firms drive innovation to support clients. She is also an inclusive, collaborative and energetic leader, which is critical in a startup environment," Cleary managing partner Michael Gerstenzang said.

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WHAT YOU SAID

"You cannot look at developing lawyers in the same way. You have to get more creative. But I do believe that the creativity that remote work has forced us all to embrace really levels the playing field for our junior lawyers."