Law Firm Staffs Are Shrinking—But Staffing Costs Aren't: The Morning Minute
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December 20, 2021 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
LESS IS MORE - Law firm staffs may be shrinking, but staffing costs are still heading in the opposite direction, Law.com's Andrew Maloney reports. An overwhelming majority of respondents to a new survey by Citi Private Bank's Law Firm Group said they expect the number of secretaries to continue decreasing. About 83% projected a decrease in legal secretaries in 2022 relative to 2020. However, roughly two-thirds of those surveyed projected growth in pricing specialists (68%), business development/marketing professionals (65%) and technology staff (63%). They also expected growth in project managers and billing and collections teams. And none of those roles come cheap. "This means that even for firms planning to reduce their overall professional staff leverage, they are likely to see an increase in the overall cost of professional staff," the (also recently released) 2022 Citi Hildebrandt Client Advisory found.
CONFLICT CREWS - Another administrative function that has seen significant "upskilling" recently is in the realm of client conflict checks. The old system of making partners ultimately responsible for spotting conflicts was not exactly foolproof. And as law firms have gotten bigger and more complex over the years, that top-down approach has become even less advisable. With that in mind, more firms are bringing in professional analysts to perform conflict checks, new research from legal tech company Intapp suggests. Like many staff roles in the legal industry, those responsible for conflicts analysis are evolving into a specialized team of professionals, often with four-year degrees or J.D.s, rather than clerical personnel serving at the discretion of practice partners, according to survey authors. "We're stepping away from an administrative view of that role and talking more substantively about bringing legally trained folks in, whether that's folks who are certified paralegals or whether that's lawyers," Makaylia Roberts Binkley, director of risk consulting for Intapp and former director of risk management for Ballard Spahr, told Law.com's Justin Henry.
TURNING THE SCREWS - Stanley Black & Decker, a manufacturer of household hardware and security systems, was hit with a patent infringement lawsuit Friday in North Carolina Western District Court. The lawsuit, which was filed by Alston & Bird on behalf of Hangzhou Great Star Industrial Co. Ltd., claims that Stanley Black & Decker knowingly infringed upon the patented design for Great Star's ratcheting screwdrivers. Counsel have not yet appeared for the defendant. The case is 3:21-cv-00675, Hangzhou Great Star Industrial Co. Ltd. v. Stanley Black & Decker, Inc. Stay up on the latest deals and litigation with the new Law.com Radar.
EDITOR'S PICKS
By Zack Needles and Alaina Lancaster
WHILE YOU WERE SLEEPING
WORKING TITLES - The European Commission recently unveiled what lawyers are describing as the world's first attempt to regulate the booming gig economy that has become a mainstay of many cities, Law.com International's Linda A. Thompson reports. More than 500 platform companies are active in the European Union and they represent a €20-billion industry, according to the Commission. The proposal seeks to offer the bloc's 28 million gig economy workers better labor protections, while also giving companies like Uber more legal certainty by settling a question that has divided courts across the 27-country bloc: are gig economy workers really self-employed?
WHAT YOU SAID
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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.
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