Are Clients Regaining Sway With Law Firms?: The Morning Minute
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June 10, 2022 at 06:00 AM
6 minute read
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WHAT WE'RE WATCHING
TRANSFER OF POWER - Ah, we'll never forget the brief reign of the Big Law associate. For the past two years, talent—especially young talent—has wielded its collective power to change where they can work, how they get paid, and even at times who a law firm represents. With demand riding high, it's been in firms' best interest to cater to the people who are actually doing all that work. But, as Law.com's Gina Passarella writes in this week's Law.com Barometer newsletter, a slowdown in demand could potentially put clients back in the driver's seat, which would have ramifications for all types of legal services providers. "The question moving forward really becomes not just whether clients will have more authority over how legal services are provided, but whether they will now wield their power in a way that creates other changes to the firm structure," Passarella writes. "Would a possible recession result in simply a shift in buying decisions or might it also force more meaningful conversations on alternative fees, diversity, travel, technology, collaboration and the many other topics clients have spoken about for decades. One thing the pandemic has taught us, and shown to clients, is how quickly organizations can change when they have to." To receive the Law.com Barometer directly to your inbox each week, click here.
RISING (IN-)HOUSE PRICES - Clients may be regaining sway over law firms after a few years of playing second fiddle to associates and partners, But in-house departments themselves have faced plenty of pressure during the talent war too. As Law.com's Hugo Guzman reports, median total compensation for in-house counsel across all industries and positions rocketed 21% higher in 2020, according to a new study that attributed the spike to the steep challenges companies faced attracting and retaining talent in a tight market. The study from the New York-based executive search firm BarkerGilmore was based on surveys released in March and April. It found that base pay last year climbed just 9%, but bonuses rose 37% and long-term incentives shot up 100%. In 2020, a year when many companies adopted austerity measures because of the COVID-19 pandemic, median total compensation rise 4%, according to last year's iteration of the report. "Retaining and recruiting top talent was a focus for every company in 2021 as business demands escalated even further than 2020," said John Gilmore, founder partner of BarkerGilmore. "The candidate-driven market prevailed in compensation packages, employer flexibility and company culture. Companies in any one of these areas certainly faced challenges."
WHO GOT THE WORK?℠ - Dayna C. Cooper of Cooper Legal and Adeyemi O. Adenrele of Barnes & Thornburg have stepped in to represent Biz Markie Inc. and Jennifer Izumi in a pending trademark lawsuit. The suit accuses Izumi of misappropriating funds and wrongfully obtaining access to intellectual property rights related to the "Biz Markie" mark as the power of attorney. Biz Markie, whose given name was Marcel Theo Hall, was the late rapper and DJ known for his 1989 single "Just a Friend." The suit was filed March 23 in District of Columbia District Court by Venable and Greenspoon Marder on behalf of Markie's wife Tara Hall as the personal representative of Markie's estate. The case, assigned to U.S. District Judge Colleen Kollar-Kotelly, is 1:22-cv-00806, Hall v. Biz Markie Inc. et al. >> Read the filing 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.
ON THE RADAR - Robins Kaplan filed an antitrust lawsuit Thursday in California Central District Court against California Edison Co. The suit, brought on behalf of Southern California Electrical Firm and other plaintiffs, argues that the defendant uses its total dominance in Southern California's electric utility market to dictate who is able to work as designers or installers of new electric line extensions. Counsel have not yet appeared for the defendant. The case is 2:22-cv-03937, Southern California Electrical Firm et al v. Southern California Edison Company, a California corporation et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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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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