Some Law Firms Have Embraced a Subscription Fee Model: The Morning Minute
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September 13, 2021 at 06:00 AM
5 minute read
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WHAT WE'RE WATCHING
CLIENT (SUBSCRIPTION) SERVICE - Last week in this space, we pondered how much longer law firms could go on raising rates before clients start to get really cheesed off. But imagine a legal services delivery model that eschews billable hours altogether—it's easy if you try. As Law.com's Victoria Hudgins reports, law firms are increasingly taking a cue from services like Spotify and Netflix and offering their clients subscription fees. While this model may not be common in the industry at the moment, its presence and growing adoption is being driven by clients, said Robert Taylor, CEO and GC of U.K.-headquartered law firm 360 Law Group. "I find even some of the large companies we deal with are actually looking at the bottom-line cost; they don't accept the £300 or £400 billable hour and hours estimate," Taylor said. "They're now asking to know what the cost will be before doing the work." To be sure, subscriptions don't lend themselves easily to every practice area, but Tomu Johnson, founder of privacy and data management law firm The Broad Axe, noted that, wherever there's predictability and repetition, there's an opportunity. "The nice thing is that when you have a process that is somewhat static, you can then take that process and use tools to automate it and shrink the cost of replicating that process over and over for your client[s]," he said.
DECISION OF CONSEQUENCE - Over the past week, litigators, court watchers and lawmakers have warned that the U.S. Supreme Court's 5-4 ruling allowing Texas' six-week abortion ban to take effect could have far-reaching and potentially dangerous consequences moving forward—and not just in abortion cases. In this week's Law.com Litigation Trendspotter column, we look at how SCOTUS' refusal to block the law, known as S.B. 8, has added fuel to the ongoing debates over term limits for justices, the high court's controversial "shadow docket" and court stacking. We also examine how both Republican and Democratic legislatures in other states could potentially model their own laws after S.B. 8 to suit their own partisan ends on topics not limited to abortion. I'm interested to hear from you: Do you agree with those who say the court's ruling on S.B. 8 has created a loophole for other states to exploit with similarly structured laws governing not just abortion, but other highly partisan issues? Why or why not? Let me know at [email protected].
RENT CONTROL - Miller, Canfield, Paddock and Stone sued the City of Ann Arbor on Friday in Michigan Eastern District Court on behalf of Washtenaw Area Apartment Association and roughly two dozen rental property owners and managers. The suit challenges city ordinances that bar landlords from running criminal background checks on prospective tenants and from showing or leasing properties until 150 days before lease expiration. Counsel have not yet appeared for the defendant. The case is 5:21-cv-12110, Washtenaw Area Apartment Association et al v. Ann Arbor, City of. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR'S PICKS
- For Big Law, Questions Swirl Around Biden's New Vaccine Rules By Dylan Jackson
- OK, You Broke Me. I Give Up on Motions in Limine By Amanda Bronstad
- Take Our Survey: Should the Term 'White Shoe' Be Canceled? By Patrick Smith
WHILE YOU WERE SLEEPING
PROCEEDING WITH CAUTION - It's obviously been no socially-distanced picnic to try to figure out how to safely bring back lawyers and staff to offices in the U.K. and U.S. But, as Law.com International's Anne Bagamery and James Carstensen report, European firms have a different, and perhaps more delicate, set of decisions to make. While official guidance to employers varies from country to country, law firms in Europe—in common with most private-sector employers—can easily find themselves caught between their legal obligation to protect employee health and safety, and the legal prohibition against infringing employees' right to privacy by asking whether they have been vaccinated.
WHAT YOU SAID
"I think what's going to happen is the tenants themselves, the law firms, accounting firms, tech companies and banks, if they haven't done so already, they'll take the full step in requiring their employees to be vaccinated. That will benefit those large businesses, but also benefit the landlords whose buildings are occupied by these large businesses."
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J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
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Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
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Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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