23. The Business of Law Isn't All Business
A North Dakota law firm successfully sued its former associates for missing their billable hours targets. The firm won. But they forgot about the law of unintended circumstances.
February 24, 2023 at 12:21 PM
3 minute read
The original version of this story was published on Lean Adviser
"Beware of victories" goes the adage. It's true in family spats and it's true in the business of law. If ever we needed a perfect example, it was provided by North Dakota law firm Larson Latham Huettl.
In case you hadn't noticed, this is the shop which successfully sued its own former associates for missing their billable hours targets. According to the Supreme Court of North Dakota, their actions were completely justified. Their business model was upheld. Their contract with their former associates was sustained. Their legal analysis was ratified. Congratulations. So what's the problem? They misunderstood their purpose.
Law firms are in the business of law. This means they exist to solve client's problems and so make profit. The purpose is the clients, the profit is just the consequence
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