Can the Distributed Law Firm Model Still Work?: The Morning Minute
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December 07, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
MODIFYING THE MODEL - Despite departures by leaders at FisherBroyles and expected additional exits at the Am Law 200′s first distributed firm, the low-overhead, partner-autonomy model for legal services is likely to remain a viable alternative to traditional brick-and-mortar firms. Still, as Law.com's Justin Henry reports, that doesn't mean this approach couldn't use some tweaking. For example, a common feature of the distributed model is the lack of a true equity partnership. Instead, firms like FisherBroyles, Culhane Meadows and Rimon employ a formula that reserves a minority of collections for the firm and a majority for the partner. While some argue that the lack of an equity structure can create a challenge when it encourages attorneys to silo themselves off from the rest of the firm, leaders of distributed firms say their internal compensation systems incentivize cross-practice collaboration. Perhaps, however, true success lies somewhere between those two extremes.
MORE IN '24 - Earlier this week, we told you that a number of law firm leaders are less than bullish heading into next year, but don't fret just yet—as Law.com's Andrew Maloney reports, not all law firms are down on 2024. With inflation moderating and interest rate cuts anticipated, many law firms believe they are well-positioned for a rebound in transactional work and a "better year'" overall next year, according to a new report this week. "It's likely that most firms will see growth in revenue and profitability in 2023, outperforming 2022," according to a 2024 Client Advisory from Hildebrandt Consulting and Citi's Global Wealth at Work Law Firm Group, published Wednesday.
ON THE RADAR - Adani Green Energy Ltd., an India-based renewable energy company, has secured an additional $1.36 billion in financing to increase its construction financing framework to $3 billion. Adani Green was counseled by Latham & Watkins and Saraf & Partners. The underwriters were advised by Linklaters and Cyril Amarchand Mangaldas. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
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David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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