Insights

Home > News & Insights > Insights > Decisions Reveal Priorities In Law Firm Economics

Share this on:   a b j c

Decisions Reveal Priorities In Law Firm Economics

Published by on November 13, 2008

We have been discussing law firm economics and employment litigation in a recent series of posts — here is the most recent.  One theme we have been emphasizing is that law firms are businesses too, and businesses make decisions about pricing and cost management based on certain priorities.  A question we have been raising is, in […]

We have been discussing law firm economics and employment litigation in a recent series of posts — here is the most recent.  One theme we have been emphasizing is that law firms are businesses too, and businesses make decisions about pricing and cost management based on certain priorities.  A question we have been raising is, in the context of employment litigation, what are the priorities that clients want to be paying for?  More after the break.

Today’s ABA Journal article on the $250,000 White & Case holiday party taking place while the firm is laying off 70 lawyers and 100 staff members speaks for itself.  According to W&C’s website, it has over 2,400 lawyers in 25 countries and a labor and employment practice.  According to this source, profits per partner last year at W&C were $1.67 million.  Not to single out W&C, but is a $250,000 holiday party (last year’s was reportedly $500,000 with fireworks) something that a client with a run-of-the-mill employment discrimination case wants to be funding?  After all, the holiday party is part of the firm’s “overhead” that goes into calculating billing rates.

Perhaps this explains the decisionmaking process.

Topics: , ,

Share:   a b j c