Discounts, Write-Offs and AFAs Remain Prevalent: The Morning Minute
The news and analysis you need to start your day.
October 11, 2021 at 06:00 AM
5 minute read
Want to get this daily news briefing by email? Here's the sign-up.
WHAT WE'RE WATCHING
EVERYTHING'S NEGOTIABLE - Even as many law firms have seen demand for their services soar over the past year-and-a-half, clients continue to treat paying their legal bills like they're auditioning for an episode of "Extreme Couponing." The Legal Pricing and Budgeting Report, a collection of data from more than 800 law firm pricing professionals across the U.K. and North America at firms with at least 100 lawyers, recently detailed how write-offs, discounts and alternative fee arrangements remain "widespread." As Law.com's Andrew Maloney reports, 94% of respondent firms said they have experienced delays in settling bills, while a majority in North America (60%) and nearly half in the U.K. (48%) said write-offs have increased by at least 60% since COVID-19 swept the globe. But there is a golden opportunity here too. Firms reported average increases in demand for AFAs of 28% in North America and 26% in the U.K since the pandemic started. "Following a year when firms went above and beyond to support clients, expectations have risen, and that includes expectations that law firms will embrace digital technologies at the same rates as clients," the budgeting report said, noting that the pace of some firms' adoption of digital tools will be a competitive edge. "Going into a client negotiation with a clear idea of what AFA can be profitably offered and being transparent about pricing changes the debate from fee arrangement to the value being delivered."
TOTAL RECALLS - Lawsuits over this year's closely watched recalls of Johnson & Johnson's sunscreen and Philips breathing machines will be transferred to Florida and Pennsylvania, Law.com's Amanda Bronstad reports. In separate orders Friday, the U.S. Judicial Panel on Multidistrict Litigation sent 17 cases filed over the July 14 recall of five sunscreen products to Florida, and about 115 lawsuits tied to the June 14 recall of ventilation and sleep apnea machines to Pennsylvania. One order from the MDL panel assigned the sunscreen lawsuits to U.S. District Judge Anuraag Singhal of the Southern District of Florida, a 2019 appointee of former President Donald Trump. Both sides had suggested the Southern District of Florida for the consumer class actions. The MDL panel's other order assigned lawsuits against Philips North America to U.S. District Judge Joy Flowers Conti of the Western District of Pennsylvania. Although Philips is not giving out refunds through its recall, it is offering replacements and repairs on more than 3 million breathing products, including CPAP machines, which were found have sound abatement foam that could cause a host of health risks.
YOU SNOOZE YOU LOSE? - Jazz Pharmaceuticals, an Ireland-based biopharmaceutical company, and other defendants were hit with an antitrust lawsuit Friday in California Northern District Court. The court action claims that the defendants engaged in a scheme to restrain competition for the narcolepsy treatment Xyrem and its generic bioequivalents in the United States. The complaint was brought by Schneider Wallace Cottrell Konecky; and Lowey Dannenberg P.C. on behalf of Molina Healthcare, a health care management business offering services through government programs. Counsel have not yet appeared for the defendants. The case is 3:21-cv-07935, Molina Healthcare Inc. v. Jazz Pharmaceuticals, Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR'S PICKS
- How to Kick Imposter Syndrome Out of the Legal Profession By Zack Needles and Alaina Lancaster
- PwC Goes All-In on Flexibility. Will Big Law Follow? By Dan Packel
WHILE YOU WERE SLEEPING
GLOBAL PARTNERSHIP - White & Case has promoted 59 lawyers to its partnership in its largest global promotions round ever, Law.com International's Hannah Roberts reports. Nearly two-thirds of the lawyers in this year's round are being promoted in the firm's Europe, Middle East and Africa and Asia-Pacific offices. In the Americas offices, 22 lawyers are being made partner, while 32 are being promoted in EMEA and five in Asia-Pacific. Meanwhile eight lawyers apiece are being made partners in the firm's London and New York offices, in line with the firm's strategy to boost partner headcount in the two locations. Spanning 24 offices and 16 countries, the latest round surpasses the firm's record round of 45 in 2019. "Our new partners represent a rich and diverse set of skills, experience and backgrounds," said White & Case chair Hugh Verrier in a statement. "This is our largest class of White & Case partners ever. It reflects our commitment to deliberate, strategic growth that supports exceptional service for our clients globally. We are investing in our people for the long term."
WHAT YOU SAID
"Trauma is on the rise right now. And it's not getting better."
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
© 2025 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 All![Snap Paid $63M in Fees to 2 Am Law 200 Firms in '24 Snap Paid $63M in Fees to 2 Am Law 200 Firms in '24](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/corpcounsel/contrib/content/uploads/sites/404/2023/01/Snapchat-App-004-767x633.jpg)
![How Some Elite Law Firms Are Growing Equity Partner Ranks Faster Than Others How Some Elite Law Firms Are Growing Equity Partner Ranks Faster Than Others](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/08/74/d52420804282a7dfc379a3c57b89/human-resources-767x633-10.jpg)
How Some Elite Law Firms Are Growing Equity Partner Ranks Faster Than Others
4 minute read![Law Firms Expand Scope of Immigration Expertise Amid Blitz of Trump Orders Law Firms Expand Scope of Immigration Expertise Amid Blitz of Trump Orders](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/americanlawyer/contrib/content/uploads/sites/389/2021/09/bigstock-U-s-Department-Of-Homeland-Se-25861103-767x633.jpg)
Law Firms Expand Scope of Immigration Expertise Amid Blitz of Trump Orders
6 minute read![Big Banks Did Great Last Year. What Does That Mean for Big Law? Big Banks Did Great Last Year. What Does That Mean for Big Law?](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/americanlawyer/contrib/content/uploads/sites/415/2023/06/04_Coins_Money_Bag_Savings_Adobe_640x640.jpg)
Law Firms Mentioned
Trending Stories
- 1Landlord Must Pay Prevailing Tenants' $21K Attorney Fees in Commercial Lease Dispute, Appellate Court Rules
- 2Compliance with EU AI Act Lags Behind As First Provisions Take Effect
- 3NJ's Pardons and Commutations A Model for the Federal System
- 4As Political Retribution Intensifies, Look to Navalny's Lawyers
- 5Family Law Practitioners Weigh In on Court System's New Joint Divorce Program
Who Got The Work
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.
Who Got The Work
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.
Who Got The Work
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.
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