The October 17 issue of the Wall Street Journal contains a terrific article by Ashby Jones, What’s A First-Year Lawyer Worth? The answer, it seems, is not much, at least to some general counsel. Several GCs are quoted talking about how they deal with the "first-year dilemma." Here’s the definition:
But lawyers said there is still a gulf between a newly minted lawyer and one who can provide value to a client. Among the skills often absent are a comfort and confidence with clients, a sophisticated knowledge of the business world, and many nuts and bolts, such as how to prepare a witness for a deposition or the precise terms that, say, need to be included in a particular kind of loan agreement.
The article includes thoughts of several managing partners of law firms. Two managing partners showed the gulf between those who get it and those who don’t. The articles reports:
But R. Bruce McLean, the chairman of Washington, D.C.,-based Akin Gump Strauss Hauer & Feld LLP, said that if the trend continues, firms will have to find a new solution, perhaps a new billing model or intensive training programs similar to those in the U.K., where prospective solicitors take a one-year course on legal practice followed by an apprenticeship.
Compare McLean’s view with that of Peter Kalis, who advocates for yesterday’s status quo:
Peter Kalis, the chairman of K&L Gates LLP, said that when the issue arises with clients, he tells them "it’s their dollar, and they’re free to do with it as they wish." But he said he also tells them to "step back," and take a longer view. "It’s a bargain made throughout the generations that has served democracy and capitalism well."
I have a hard time imagining a lamer argument. It is essentially this: " Let’s ignore the changes in the business world over the last 20 years. Let’s continue to pretend that law is immune to business demands. Keep paying more than you need to because your paying more than you need to is good for democracy and capitalism." The only thing he didn’t include is that over-paying large law firms is somehow divinely mandated.
The new world is coming, to some faster than others.