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WHAT WE'RE WATCHING

NO SMALL REWARD - Big Law firms in the last few years have launched a flurry of new offices in smaller cities, from Nashville to Austin to Salt Lake City—areas where billing rates are far below those in New York, Washington, D.C., and Los Angeles. So, other than barbecue and live music, what's the attraction? Analysts say the value proposition for law firms, even for some of the most profitable firms that can't command their usual rates in such cities, is simple: enticing talent, being near valuable clients, and adding offices with lower overhead costs. Industry observers told Law.com's Andrew Maloney that there are generally two paths for Am Law 50 firms opening in such markets. One is following high-opportunity startups, which often pay for legal services through alternative fee structures. The other route is more of a talent play: bringing on excellent lawyers who have practices that expand beyond the market or who can help do work outside their region.

LIVE RUST - Many litigators are eager to get back to the courtroom after nearly two years of virtual proceedings. But will trying cases in person, with pants on, after all this time take some getting used to? Attorney Matthew Tharney told Law.com's Charles Toutant that lawyers who have been out of the courtroom for a long time are susceptible to a lack of mental sharpness that he terms "ring rust," which describes a boxer who hasn't fought in awhile. "There is no question in my view that absence from the courtroom for an extended period creates so-called ring rust, particularly with respect to facility with evidential issues in the live courtroom setting when important decisions regarding objections must be made without the luxury of time. Nuances regarding how to present to a jury are also directly implicated in a courtroom setting, such as the layout of the specific courtroom, acoustics, or juror selection, that cannot be ignored, and such issues have not been the subject of focus for many trial lawyers during the pandemic," said Tharney, who is president of the Trial Attorneys of New Jersey, a group devoted to preserving the jury system.

WHO GOT THE WORK?℠ - Here's a cute Valentine's Day love story to kick off your week: budget airlines Frontier Group Holdings Inc., the parent company to Frontier Airlines, and Spirit Airlines are getting hitched and the guest list for the wedding is a who's who of Big Law. Miramar, Florida-based Spirit is represented by a Debevoise & Plimpton team led by partners Gregory Gooding and William Regner. Frontier, which is based in Denver, is advised by Latham & Watkins partners Mark Bekheit and Tony Richmond. O'Melveny & Myers advised both carriers on employment matters. Barclays, acting as financial adviser to Spirit, is represented by Sullivan & Cromwell partner George J. Sampas. Citigroup Global Markets Inc., acting as financial adviser to Frontier, is advised by Fried, Frank, Harris, Shriver & Jacobson partners Philip Richter and Roy Tannenbaum. The transaction, announced Feb. 7, is expected to close in the second half of 2022 and is valued at approximately $6.6 billion, including the assumption of net debt and operating lease liabilities. Read the press release on Law.com Radar and check out the most recent edition of Law.com's Who Got the Work?℠ column to find out which law firms and lawyers are being brought in to handle key cases and close major deals for their clients.

WHO'S WATCHING WHO? - The operator of video and GIF-sharing site Imgur was hit with a class action Friday in California Central District Court alleging violations of the Video Privacy Protection Act. The suit, backed by Bursor & Fisher, centers on Imgur's use of a Facebook tracking pixel to collect information on visitors' views and link it back to individual Facebook profiles. The suit pursues claims on behalf of individuals who have a Facebook account and watched videos on Imgur's site. Counsel have not yet appeared for the defendant. The case is 2:22-cv-00979, Suufi et al v. MediaLab.Ai, Inc. Stay up on the latest deals and litigation with the new Law.com Radar.  

EDITOR'S PICKS

WHILE YOU WERE SLEEPING

OMICRON'S STILL ON - The easing of COVID restrictions, while occurring in the U.K. and the U.S., is not taking place everywhere. As Law.com International's Chris Niesche reports, law firms in Australia have pushed back plans to bring more staff back to the office and are requiring those who do go in to wear masks. The change in plans follows a surge in COVID-19 cases that hit Sydney and Melbourne in January. Compared with many other nations, Australia had been more successful in containing the virus for the first two years of the pandemic. But the highly contagious omicron variant spread rapidly through the country, particularly in the two largest cities. By the start of the second week of January, Australia had surpassed 100,000 new cases a day. And while the peak appears to have passed, law firms are delaying plans to more fully repopulate their offices.

WHAT YOU SAID

"You have a lot of lawyers at big, traditional firms who are unhappy. They would like a move to something like a virtual firm, but they were previously apprehensive about it. They always had the marble and mahogany and people all around them taking care of them. COVID thrust them into an environment where they can work from home. People said, 'I can do this. It's great.'"