The Last Days of the American Lawyer Thomas D. Morgan Major player in National LGL: Reporter ‘82 Rekindling Prof’lsm; Assoc.Reporter ALI Rstmt LGL; Reporter MDP C’mn; Member e2k Former President, AALS

I. Intro.: The Golden Age is Over “golden age”: ‘50s’- 60s’ nobody starves ‘09 – future: “musical chairs … music stopped” – Increased external regulation – Decrease in “distinctively legal questions” – Future Lawyers: need to develop both specialized substantive expertise & non-legal aspects of clients’ problems. Aim: meet C needs for higher quality at lower costs

B. Changes that have brought us here: 8 trends pp Demise of exclusive self-regulation 2.Competition (overproduction of lawyers during time of shrinking demand); less need for generalists 3.Globalization (multi-jurisdictional in US & internationally) 4.Technology (24/7; repetitive legal work becoming commodities, competitive market Ls & nonLs)

B. Changes that have brought us here: 8 trends 5. Increased size of legal employers (20 > 1000 lawyers; demise of “all purpose” sole practitioners) 6. Stratification of LP, Heinz & Laumann: ’65: 53% corp. law for business entities; 40% individual clients ‘95: 64% corporate; 29% individuals SIGNIFICANCE???? ACCESS TO JUSTICE?

B. Changes that have brought us here: 8 trends 7.Rising power of in-house counsel ***since ‘70s, brought work in-house in response to private firm billing practices, “vertical integration” lowered cost of recurring tasks, who better understand company & executives trust more (“team player”?) 8. Declining significance of having U.S. law license (gasp!). U.S.: MJP, E.U. (cross-border), U.K. LSA (non-L owners, managers, Alt. Busn. Strucs.), AU (same). U.S.: outsourcing to other countries, subject to RPC 5.1. Ethics 20/20: ALPS?

C. Implications for Future American Lawyer pp p. 10: find way to differentiate yourself, become “among the best at doing particular kinds of work that a reasonable number of clients need done.” Many trad’l lawyer services will become commodities (standardized products sold primarily on basis of price). **Technology facilitates sale as forms or routine tasks easily tailored to individual.

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C. Implications for Future American Lawyer pp Public policy implications: impact of competition on supply & costs Expanding client expectations: beyond technical legal competence to understanding C’s business operations & impact on C’s legal decisions

C. Implications for Future American Lawyer pp How to acquire that expertise? “Star lawyers”: big personal reputations & demonstrated ability to manage teams of other lawyers & non- lawyers. Most others: serve on teams or as consultants to teams.

D. The Future of the American Law Firm pp Specialty practice groups will continue Best big firms as multi-specialty organizations will thrive b/c – Internal risk management, cyclical practice (boom/bust, deal-makers & bankruptcy) – Available large teams for “project” work – Ability to diversify services to meet C demand – Marketing as brand name Local observations?

D. The Future of the American Law Firm pp Needed regulatory changes for U.S. to remain competitive in global market RPC 5.4 form of practice restrictions, prohibit MDPs. Corporate clients may view professional service firms more as shopping malls, hire multiple providers with expertise in different areas. Upscale version of Limited Scope Representation (LSR) – Internal firm impact: stars “eat what kill” vs. scraps to menial servants – Rewards to originating partner, discourage careful vetting or prospective clients

D. The Future of the American Law Firm pp Consciousness of law firm culture Outside financing of law firms? (AU, U.K.) Allow reasonable restrictive covenants on mobile lawyers, revise RPC 5.6(a)? Costs of hiring & training new associates, retention problems

E. Impact of Coming Changes on Legal Education??? pp Legal analysis “think like lawyer” 2.Sufficient substantive law that new knowledge can be placed in context 3.Concrete skills to improve client’s situation 4.Enough non-legal understanding to see & understand client’s problem from client’s perspective. (empathy)