Lean and Mean

We've recently discussed the surge in public airings of client dissatisfaction with Big Law, as well as calls for change in some key areas of Big Law business practices.

Obviously, a situation in which the client base yearns for new products or alternative pricing typically results in the market rewarding the innovative and proactive.

It didn't take long for 2010 to offer a concrete example.

Law.com recently profiled Chaffetz Lindsey, a boutique firm founded last year by five former partners of big law Clifford Chance.

While Chaffetz Lindsey is gaining traction with referrals from other large firms due to conflicts, they've also crafted a business model positioned to appeal to clients turned off by large firm cost structure.

"The partners say the ability to offer billing rates lower than their large-firm counterparts is attracting and keeping clients. Chaffetz Lindsey lawyers have been able to bill up to 20 percent to 30 percent less than they did at Clifford Chance, said partner Charles Scibetta. The firm's preference is to try to negotiate with clients to sign a fixed fee agreement or make a deal with a contingency fee component, Scibetta said."

"What I believe is going to be important to a client is we have the big firm expertise but we're at a smaller place now and we're able to be more flexible on rates" said Cecilia Moss, 40, another partner who was previously counsel at Clifford Chance.

While clients say they appreciate the flexibility of fixed fee or contingency pricing, strategic alliance is also part of their business plan.

"Chaffetz Lindsey is relying on a low-leverage model to keep costs down, but it has also made arrangements with Jaeckle, Fleischmann & Mugel, a Buffalo, N.Y., firm where Scibetta used to work, to staff cases should the need arise."

Lean, mean, and nimble. Definitely a model to keep an eye on.