Closing a Practice

In a previous column, we described some of what an underwriter does as they try to find an appropriate match of risk and premium. Yes, there is a science to underwriting – The Law of Large Numbers, actuarial statistics, etc. But there’s also an art to it. We are not Robo Underwriters who simply plug numbers into a formula, hit a button and wait to see what premium is spit out. We have to consider factors that are not quite as quantifiable. For example, if a firm has claims, we would need to know more than just how many claims. We look further to understand the severity and the frequency of claims, the practice areas they fall under, the attorneys involved and so on. Instead of just knowing what practice area(s) an attorney specializes in,...

Last week I turned sixty-five and realized that I am not far off being eligible for Social Security and Medicare. The problem is I don't feel old enough to be eligible for either, and I have no desire to retire. Sixty-five used to be the milestone that people kept in mind as the date when they got the gold watch and started drawing their retirement from their employers defined benefit pension. Very few of those exist anymore and most of them have been turned over to the Pension Benefit Guarantee Corporation (PBGC) as part of a corporate chapter 11 bankruptcy filing. Now for many of us it's just another birthday with no meaning greater than any other. This thought string got me thinking about lawyers and retirement generally.

The world has...

For years my kids viewed me as not very tech savvy. I suspect that was because I wasn’t a power gamer or perhaps they believed that parental units just don’t get it. Over time however, I have found it ironic that several of these now young adults occasionally call home for instructional help and guidance with their laptops and smart phones. One call of note occurred a few years ago and concerned a laptop that was dying a painful death due an inordinate number of nasty viruses and Trojans that had erased restore points and data as well as turned over control of that laptop to someone else. I was not able to help with this problem since we were separated by several thousand miles at the time. My only advice was to suggest that the time had...

I received more public comments on The Practice of Law is Dead blog post than any other I've written and they covered the waterfront as to cause and cure. Clearly, lawyers have concerns about the future and much of that concern revolves around lawyer population control. Apparently, Time Magazine was so impressed with my post that they published an entire article, written by Bill Saporito, on the subject entitled The Law vs. Supply and Demand - Is becoming a lawyer a bad investment? The article is so well written and so on point to my earlier blog discussion that I encourage you to read it so you can get the full impact without having to read my paraphrase of it in this post. Unfortunately, you may have to pay to read the article (it's worth...

Okay so it's a bad paraphrase, but it makes a point. At some point in life every lawyer realizes that the practice culture, practice rules, client demands and expectations have changed drastically from what they knew oh so may years ago, and for many not for the better. I think this probably holds true for most lawyers who entered the practice in the last century, but I suspect it applies more for those of us that started practice just before the beginning of the information age. Population growth and concentration, inflation, speed of communication, ease of research and economic expectations all played a role in the meteoric change. The future of the practice of law belongs to the younger generation of lawyers and they face a daunting and...

The perception of attorneys in the US is dismal. The perception of the legal profession in the US is unfortunately unfavorable in general. A 2007 Gallup Poll looking at “unfavorable attitudes” showed that only advertising executives (58% highly unfavorable) and lobbyists (42% highly unfavorable) fared worse than lawyers (35% highly unfavorable). This is a bleak state of affairs that has not improved in recent years. In 2011 another similar Gallup Poll, which looked at “positive perception” showed similar results concerning the relative ranking of attorneys. Nurses (84% positive) and doctors (70% positive) rated as the most highly admired professionals while Lawyers (19% positive), lobbyists (7% positive), congressmen (7% positive), and...

"Of counsel" is one of those terms that has multiple meanings. This term has traditionally been used as an honorary designation for retired partners, as a special designation for firm attorneys who are neither a partner nor an associate, and as a way to describe part-time attorneys who have created an association with a firm. In recent years, however, more attorneys seem to want to use the term solely as a way to generate additional business. After all, the increased exposure coupled with the presentation of close ties with another firm can be an effective marketing tool, right? Well perhaps, but there are risks that come into play and these risks should not be taken lightly.

What is an Of Counsel Attorney?

The "of counsel" designation...

As part of my risk consulting, I sometimes explore a firm's claims history in a group setting of attorneys. Every once and a while, one or more of the attorneys will resist this effort and question the appropriateness of the topic. With similar frequency I find myself in an open and honest discussion about what happened. The claims discussion is an interesting part of the visit process as I can learn a great deal about the inner workings of a firm based upon how the group responds. Ultimately, I am looking for an ability of the involved attorney(s) and the firm to hold themselves accountable for their actions or inactions. I am also looking to see if they have embraced the learning that can be taken from the experience and, perhaps most...

Most attorneys are more than able to effectively manage their client’s legal matters. Files are appropriately documented, substantive work progresses as expected, and resolution is reached in a timely manner. Unfortunately, competent lawyers who do good work and get a fine result can still find themselves facing a malpractice claim. Even worse, some of these claims will eventually lead to a loss payout. With this in mind, I find it curious that in my fourteen years in the malpractice insurance industry, I have never heard of a malpractice claim brought by a satisfied client. I can also share that I have personally spoken with a lawyer who did blow a statute of limitations date on a significant matter. After informing the clients of this...

Who can forget the scene in "Close Encounters of the Third Kind" when Richard Dreyfuss's character built a rather large re-creation of Devils Tower in his living room out of just about anything he could find - bricks, dirt, shrubbery, you name it. If you missed that film, trust me, it was a heck of a mess. Believe it or not, I have stood in a file room in an actual law firm where, in my mind, this mountain was re-created yet again. Files towered over my head and access to the top could only be accomplished by ladder. That file room is one I will never forget. To my relief I did learn that I was one of a select few ever allowed access, and fortunately, no clients ever knew what was hidden behind a very mundane door that they walked passed...