State of the Legal Industry Survey

As we wind down what has certainly been one of the more noteworthy years for the legal profession, it seems both appropriate and timely to look at LexisNexis's State of the Legal Industry Survey.

The survey describes itself as "the first of its depth and breadth to be conducted on the legal industry since the start of the economic crisis. Of the 550 respondents polled, 300 were private practice attorneys, 150 were in-house corporate counsel and 100 were law students."

If a snapshot of the current mindset of legal professionals provides any sort of view into the coming year, then here's what we have to look forward to in 2010...

Transformation, evolution, contrary opinions, uncertainty, and opportunity.

Some highlights of the survey are:

• 71% of corporate counsel responded that law firms today are not doing enough to respond to the current financial pressures on their business model.

• Almost half of the in-house counsel polled (46%) say they have requested rate cuts since the start of the economic downturn, yet less than one in five (18%) private practice attorneys say their law firms have reduced billing rates.

• Only 38% of corporate counsel believe that law firms are being responsive on changing fees and costs given the current economic recession.

• 69% of corporate counsel have shifted work in-house since the start of the economic downturn; 56% have reduced spending on outside counsel.

• 57% of corporate counsel believe the billable hour will give way to alternative billing arrangements.

One finding that really stands out in the midst of this professional climate that seems poised to reward an entrepreneurial approach to business is this:

• According to the survey, 65% of law school students (and 90% of lawyers) say that school teaches students legal theory, but does not teach the practical business skills needed to practice law in today’s economy.

In other words, buckle up. For better or worse, 2010 looks to be just as turbulent a ride as 2009.

Until then, all of us here at LegalEase wish a happy and healthy New Year to you all.