A joint study of law firms and their future, based on data from 135 US firms shows that they will need to embrace shifting changes in the legal market as well as warning that the sector will not be returning to its pre Global Financial Crisis heyday.

Law.com reports:

Jointly produced by the Center for the Study of the Legal Profession at Georgetown University Law Center and Thomson Reuters Peer Monitor, the report draws on a variety of other studies conducted over the past year on such subjects as partner compensation, law firm composition, and demand for lawyers to paint a portrait of an industry in flux.

Based on data culled from 135 firms in the Peer Monitor database, which tracks metrics such as demand, rates, productivity, and expenses, the report describes 2012 as “another year of only modest growth” that produced an average uptick in profits per partner of just 3.58 percent among the surveyed firms. Without breaking those firms into categories based on size or total revenue, the report notes that firms residing within the ranks of The Am Law 100 saw their profits rise just 2.45 percent in 2012, compared to the average 4 percent gain enjoyed by non-Am Law 100 firms.

The Georgetown report does not offer any conclusions about how the firms performed in terms of gross revenue last year. A recent study from Wells Fargo Private Bank’s Legal Specialty Group, however, found that gross revenue rose 5 percent in 2012 among its survey of 100 firms, including more than 50 in The Am Law 100. The Wells survey found profits within that group rose 5 percent on average in 2012.

So far, several Am Law firms have exceeded those averages, according to The American Lawyer’s early Am Law 100 reporting.

At Irell & Manella, for instance, preliminary numbers show the firm enjoying a 19 percent surge in profits, to $3.42 million per equity partner. Baker & Hostetler, meanwhile, saw its profits jump 10 percent, to $930,000. DLA Piper profits per partner rose a more modest 6.9 percent, to $1.3 million.

At the other end of the spectrum, several firms did see their profits slide last year, according to our early reporting. McDermott Will & Emery’s profits dropped 2.7 percent, to $1.46 million, while Jenner & Block’s slipped 3.6 percent, to $1.49 million.

The Georgetown–Peer Monitor study also found that demand for legal services increased just 0.5 percent last year, based on the number of billable hours logged by firms that report to Peer Monitor. Labor and employment lawyers saw the biggest increase in demand, 4.1 percent, while litigators’ were off slightly and corporate lawyers racked up 1.2 percent more billable hours.

The number of lawyers in U.S. firms, however, increased by 2 percent in 2012, according to the report, contributing to what the authors call an overcapacity in the market.

TORONTO (February 8, 2013) – Blake, Cassels & Graydon LLP (Blakes), one of Canada’s leading business law firms, won three awards at the first Benchmark Canada Awards ceremony held at the Park Hyatt in Toronto on February 6. Blakes was awarded with Product Liability Firm of the Year, Class Action Litigator of the Year (James Sullivan) and Product Liability Litigator of the Year (Gordon McKee). In the 2013 Benchmark Canada rankings also released this week, 24 Blakes litigators were recognized across the country, with star representation in all major offices and practice areas.

James Sullivan has appeared as counsel in British Columbia, Alberta and Ontario, as well as before the Federal Court and the Supreme Court of Canada. He has also frequently appeared before the British Columbia Environmental Appeal Board and other administrative tribunals. He has represented clients in numerous major corporate commercial, class action, energy, contaminated site, regulatory offence, constitutional and product liability cases. Jim advises clients on national and international compliance with foreign and domestic anticorruption legislation.

Gordon McKee focuses on defending class action law suits and serious product liability claims and has many years of experience in this area. He has defended clients in class actions involving prescription and over-the-counter medicines, medical devices, automotive equipment, fire protection systems, consumer protection matters, environmental contamination, Competition Act matters, conspiracy allegations and employee benefits. In the product liability area, he has represented multinational manufacturers and distributors of a wide variety of products. He is lead counsel in Ontario and manages litigation nationally for some of the world’s largest manufacturers of pharmaceutical medicines, medical devices, consumer goods, automotive parts and heavy equipment.
About Benchmark
The results stem from the culmination of a six-month research period where researchers conduct extensive interviews with litigators and their clients to identify the leading litigators and firms. During these interviews, researchers examine recent casework handled by law firms and ask individual litigators to offer their professional opinions on peers. Firms cannot pay to be recommended for the guide. Recommendations are based on interviews with the nation’s leading private practice lawyers and in-house counsel.
About Our Litigation & Dispute Resolution Practice
Our diverse Litigation & Dispute Resolution team is committed to representing client interests at every stage of a dispute, from fact-finding and risk evaluation through final resolution and enforcement, at trial and appellate levels, in court, at the negotiating table, and before tribunals and government agencies. Our complete range of advanced risk-management strategies helps clients avoid many disputes altogether. Our extensive industry knowledge, coupled with a deep familiarity of our clients’ business and competitive realities, allows us to craft risk-management strategies to meet each client’s unique situation. By carefully selecting the most appropriate teams for each task, we reinforce our client-first approach to litigation.
About Blake, Cassels & Graydon LLP
At Blake, Cassels & Graydon LLP, we serve a diverse national and international client base and our integrated office network provides clients with access to the Firm’s full spectrum of capabilities in virtually every area of business law. Blakes has offices across Canada and in New York, Chicago, London, Bahrain, Beijing and associated offices in Al-Khobar and Shanghai. In 2012, Blakes was named “Canada Law Firm of the Year” for the fourth consecutive year by Who’s Who Legal and “Law Firm of the Year: Canada” for the third time by Chambers and Partners. For the last five years, Blakes has been the busiest Canadian M&A law firm, according to Bloomberg and Thomson Reuters league tables.