Changes of structure America organization law firm:1960~2000

(US) Robert Hamilton Richard Booth translated by Wu Hongqi

A,20Century60In the traditional law firm

In the1960Years, the traditional law firm is a general partnership, under the system of all the partners shall bear responsibility and benefit brought by the common lawyer practice. According to some recognized (Well-establishedThe principle of) partnership, each partner must all the debt of a partnership law firm -- including caused by non partnership law or the action of other partners practicing improper claim and established in the partnership contract basis -- responsible for. However, the improper practice is not the main concern, the lawyers rarely because of improper was accused of practicing, and many law firms don't even bother to handle improper insurance practice, compared to now costs, practicing improper insurance when cheap incredible.
According to modern standards, fifty or sixty years of the twentieth Century, the traditional law firm is relatively small. One of the big firms may have30A partner and10~15Non partnership law; a medium-sized firm partner and non partnership law in all about12~15Or so. Firms are generally only a offices (although some firms have some small branches, in some other city especially when firms big customers in the city have offices). Among all the partner firms in each other to know each other, they generally manners and respect each other as glory. Firm organization is often informal; many law firms have not signed a partnership agreement, in fact the decision by a committee entrusted by a senior partner or made by some form of agreement of all partners. When you need to make a decision, it is easy to all partners to arrange in a table. When you want to make about who should be from non partnership law promotion for the partner's decision, all the partners have at least one for each candidate has some connection with some personal understanding.
During this period, almost all the male law firm. Then began, there are very few law school female graduates, but in principle, most law firms basically refused to interview or the employment of women lawyers. These firms feel that their customers will refuse to accept a female lawyer in the occupation relationship. America Supreme Court justice Sandra OConnor once described vividly said when she was in20Only in the early fifty s after graduating from law school can offer her a job as secretary work.
Firm membership in a solid. Lawyers are rarely lateral flow between a firm and the other firms, once a person is in a well-established partnership which was selected as a partner is behoove that will in the past its occupation career high yield period! As long as partners to maintain a high output, he can expect to get a fair share of partnership income; if his turnover temporarily reduced (for example, due to illness), then the firm to assume responsibility until he recovered.
In these fifty or sixty years of traditional firms, there is a kind of the same degree of professional lawyers. Before World War II, large law firms have basically no country lawyer (Country lawyer) and is willing to provide the agent for different clients involved in all areas of the law of the general practitioners. Although most lawyers have franchised areas, but an individual lawyers are willing with several quite different legal fields (for example, tax, antitrust law and securities law) of different customers provide the agent problem, this is not what rare thing. However, along with the legal system of this period is becoming increasingly complex, lawyers often find it more and more difficult in several different fields to maintain proficiency, thus generated contractive practice areas, enhance the degree of specialization trend.
Firms typically have specific customers who are rich and educated relationship. These relationships are often relatively long, with a firm basis, general counsel lawyers often served as enterprise. When an enterprise depends on more than one law firms, each firm's responsibility is usually very clear, so these firms generally do not or seldom there is competition between. Based on these relationships is often built on a handshake or oral comprehension.
Firms usually don't advance for the special transaction service entered into a price; while the new client will be informed each attorney general rate, but the amount of time to spend not usually estimated or determined in advance. If the transaction is complex, so firms may require an advance payment, through such a substantial payment to ensure on time spent in this transaction can be charged a fee. If prepayment run out (or nearly run out), firms may be required in addition to an advance payment, or possibly, after delay further charges until the transaction is complete. The completion of the job after the actual fees charged by the firm and the total for the lawyers to determine. The bill will usually specify the services rather than on the costs, expenses or practical to carry out the work of the identity of the person (IdentificationTo set one by one). The size (the billSize) may depend on the amount of time spent, but also can see some subjective factors: Lawyer evaluation on the results achieved, complexity of the transaction costs of the firm and the. Of course, occasionally fees dispute, but the dispute is not very common. Once disputes happen, solved usually by negotiation, this is because the firms and customers have recognized the importance of persistent relations. The lawyers will be encouraged to do in record time, but sometimes these important record is simple or scattered, and some lawyer himself to never do in record time and feel their services to their value as a basis for the charges for the glory.
The traditional law firm has no formal retirement policy on older lawyers. A partner may continue practicing until seventy years of age or even longer, even if the skills are limited to age, the other partners may suggest he should retire or accept a "consultant" position -- this is told he no longer holds general way firms share. After retirement, senior lawyers often become consultants, and firms may allow an office for his use and provide secretarial assistance to the. To become a consultant lawyers weekly may have one or two days to the office from his letters, and would often maintain contact with the rest of the partners. Firms generally do not provide direct financial subsidies for the elderly lawyer retirement plan. However, generally every lawyer in his firm yield during those years for their retirement to do any financial preparations he expected. Because partners are regarded as self-employed (Self-employed), so they do not get social insurance benefits range.
Such a traditional law firms remain in the sixty's picture in a fairly accurate level, although the specialization trend has continued, and many law firms in this stage also steadily, reaching than previously know much larger scale. However, large firms have hundreds of lawyers has to be traced back to those who occupy the mainstream in twentieth Century seventy or eighty's event.

Two, from the20Century sixty's to today's change

A typical firm in today's large law firms and sixty's not what in common. For example,Skadden, Arps, Slate, Meagner &, Flom, L.L.PAmerica, second law firms, in2001Years335Partners and1347Non partnership law. The firm has1704Lawyer, its headquarters in the city of New York, in addition to ten branch in USA other city and London, Paris, Brussels, Hongkong, Frankfurt, Tokyo, Toronto, Beijing, Singapore, Vienna, Moscow, Sydney and other places. It is difficult to imagine the typical law firm sixty's can be developed so that the size of the firm in twenty years.
In a sense, today's large law firm growth is nothing but a product of the growing can be obtained and the total growing legal affairs has been the emergence of specialization. In twentieth Century seventy or eighty years is the rapid development stage of lawyers and law firms. The rapid growth of part of the reason and law related affairs lies in the government to strengthen the regulation of business. This stage is the stage of rapid development USA economy, while the demand for legal services generally increases with the growth of business activity.
This phase of growth to take a completely different way and early stage. In history, the legal profession by the growth of new firms have shown, these firms often emerge from the existing law firm. The twentieth Century seventy or eighty's legal industry growth through law firms in order to meet the growing demand and continue to implement strong. In addition to split the new law firms, law firms are also increasing the number of partners and non partnership law firm in its. In addition, in order to satisfy those who own factories or other institutions in the distant city often client demand, firms will be active in the different city in their name to open offices. Along with the development of international trade, American law firms in many countries in their name to meet customer American provided firm internationalization operation. The number of partners in the big firms rapid growth.
The firm also found that by increasing the number of non partnership law to expand the firm have good prospects of gain. Along with the increase of the demand for legal services, the firm found that the cost of new non partnership law will increase and transferred to the client without opposition. General practice firm is at three times the sum of the real wage and the marginal revenue of non partnership law of cost to charge a fee for their time: 1/3 belong to non partnership law, 1/3 payment management cost, another 1/3 to partner. Under this system, the non partner lawyer and partner than the rapid growth, from the age of sixty traditional firms1∶1(or less) to3∶1Or4∶1In some cases, even higher. The number of non partnership law growth means greater profits for the firm and its partners. So compared to increase the number of partners, the firm has great power to increase the number of non partnership law, leverage this process is (as everyone knowsLeveraging).
Not surprisingly, many non partnership law will stay in their firm and became the partner. The legal industry continues to grow, firm size and income also increased rapidly.
Law school will obviously be affected the development of the. With the new lawyer can get high salary rumors spread, the law school began to accept a lot of extra applications. Around the same time, the work became tense in the traditional academic fields. Many of the best and brightest people including many young people have masters or doctoral degree in the traditional areas of selection into law school. Recent university graduates choose to abandon the traditional work in commercial or academic ideas, and choose to become a lawyer. With the growth in demand for lawyers, the new law school opened, but the number of the class of existing law school also increased. Law school admission policy is more critical, the average quality of graduates also increased. The legal services industry is clearly paid is also growing, the legal occupation very attractive; and the legal profession and legal services increase sharply. During this period, the government has put forward the guaranteed student loan program (Guaranteed student student loan program), these programs so many law students through loans to provide almost all the money for their entire legal education, as long as these loans after graduation to repay the principal. For young lawyers soaring market reduces the repayment of these loans concerns, many law students to use these generous plan. In twentieth Century eighty is a law firm, partner, non partnership law and law school's heyday. The legal services industry is a major industry. Firm expansion; salary and benefits of non partnership law continued growth; in the non partnership law of future growth and the current demand perspective, non partnership law have been hiring. The firm created a huge summer internship program to encourage them to join the firm after graduation for the completion of the school of law students in the first year and second year study. The rapid growth of the firm for themselves with the office expensive additional so that further expansion of space. Indeed, the legal services industry growth is an important factor in eighty is rapidly expanding in many city office new; law firm is regarded as the satisfying the lease, they put on the lease place promotes many new buildings in the financial speculation financing.
In the early ninety's of the twentieth Century, this growth trend is a very unexpected brief recession the curb. The demand for legal services upset no longer continue to grow; the firm found that their excessive accumulation of lawyers and unable to use the premises. Over extended firm fired new non partnership law, such acts have never even heard of it before. Some firms do not pay bonuses for non payment of partnership law or by the intern. Almost at the same time, the legal service market tightening affects the law school graduate and law students. Although the new work has not completely disappeared, but the new work is more and more difficult to find, also more and more competitive; education loans into the potential burden suddenly; there are many people reconsider the decision of applying to law school. Almost overnight, the legal services market is a buyer's market into a seller's market.
During this period, the control of legal service prices largely from completely under control over the transformation of firm. Large sophisticated client inquiry in firm to obtain the cheapest best legal services, and also to the law firm, business is naked, brutal competition. The competitive spirit has a direct impact on the relationship between firm in-house lawyer; in the seventy part of the traditional law firm partner sense of stability and tenure is emphasized (output and summon wind and call for rainRain-making)(Also is to attract customers business)Replaced.
The role and lawyers such between some change is not night happened. But, with the benefit of hindsight Zhuge convenience, we can see clearly that some change does occur very quickly, is beyond all expectations.20The early ninety's of the 20th century is a stage of continuous testing law firm, because they have to adapt to new, different economic situation through self adjustment. The prosperity phase cycle critical stage of this model and the real estate and stock market is similar with depression stage. For high quality non partnership law of competition become fierce, because firms in an effort to attract the best, the best graduates, salary increase to have never even heard of it level -- in a large law firm is almost doubled to every year85000The dollar.

Three, non partnership law training

And now, at the age of seventy, was invited to join the new member of a firm of lawyers industry started as a firm's employees rather than partners -- he is a non partnership law. This identity status includes apprenticeship and probationary period. Non partnership law by observing and assisting experienced partner to learn how to practice, at the same time, the non partner partnership law should become a partner (that is to say, according to the non partnership law firms should eventually be promoted to partner and risk and revenue sharing office practice) to evaluate his ability.
Such a training process often contain extensive guidance. First, a certain partners or senior non partnership law will pay very close attention to non partnership law work, slowly, the non partnership law will get access to more and more discretion and. Such a plan is an important one is that non partnership lawyer contact real life situations. A procedure for non partnership law may be associated with an experienced partner participated in written testimony in court hearings or together. He may assist the litigation partner interview witnesses or to do a good job for the case about the preparations for the trial, but he is the most important of study there. Over time, he may be permitted to handle some simple written testimony hearing and some conventional litigation matters. A business (Transcational) non partnership law may be through with the real business partners work together to contact the complex business partner, although you have the ability to handle the business. In this way, non partnership law might learn how to initial public offerings (IPOA complex protocol) registered in the securities or how to prepare a copy of a transaction can protect their customer's needs and objectives. The training of young lawyers, such a process is an important aspect is that customers paying most of the cost for the training, this is because the ultimate cost including the instructor and non partnership law service, although this point to the customer is not always obviously.
Practice areas many firms have formal rotation plan to make new non partnership lawyers familiar with the firm. Subsequently, the non partnership law will have a say in what he expected to specialize in a department or practice.
A new law will usually be expected in6To10Years to remain non partnership law of identity, the specific time depends on a firm's traditional. If he looks clearly not suited to being a partner, so in his first year in law firms may be fired; otherwise, he in fact was sure would have been hired to make decisions as far as partners. At this stage of the end stage, responsibility and the partner of the partnership law of non responsibility similar. He is expected to handle most business and began to develop his own customer base. He may be a new non partnership law guide. A in a law firm for nearly ten years has not yet become a partner, this situation is not uncommon. He became a skilled lawyer, be trained with regularity. Firms may help the legal office he placed in a customer or a smaller or weaker firms, or simply let the non partnership law to find a new job. In the traditional law firms, is the implementation of a complete "do not rise or leave (Up-or-outThe mechanism of "); if a person cannot become a partner, then he must leave. For young lawyers, no middle ground.
By today's standards, non partnership law does not have to work very hard. A non partner lawyer a year fee hours may be1600Hours; of course, this number also reflects the non partnership law and did not put them to stay in office every hour are recorded in the. Today, many firms expect a non partnership law at least annually charged1950Hours, while the heavier burden in the work period, non partnership lawyer may charge an annual2200Hours or even more. Some firms have created the "extra incentives" to encourage non partnership law to improve their charges hours. These plans -- also known as sweat equity (Sweat equityThe implementation of the plan --) will generally only in the firm's human difficult to keep up with the current business.

Four, the internal legal advisory department of growth

Before describing the twenty-first Century law firm, first outline the relationship between the corporate clients hire lawyers and agents of the firm is very helpful.
With the company's development and expansion in scale, it is increasingly clear that companies have a need to continue legal advice and legal representation. In twentieth Century sixty time, a Large Firm and a home for the company generally will (or direct) the historical existence with almost all the important legal activities of law firms. The company an important legal work virtually all by value law firm or a partner in a law firm to handle or guide. This relationship has lasted for a long time; often, law firms, one or several partners and members of the board of directors, if the company will hire a lawyer for the general counsel (General counsel), then this person is often before a firm partner or with the firm relationship. Sometimes, the firm will hold office in the company's office, or on the contrary. These are not completely disappeared, in smaller businesses today sometimes found, occasionally in large enterprises can also be found in the.
In twentieth Century before the fifty's, most Large Firm have not only created the office of general counsel and Chief Legal Officer (Chief legal officer()CLO) -- company's full-time employees -- has also hired attached property of legal staff to assist the general counsel. However, these employees are almost always rarely, and only most routine legal matters. For example, the transaction may involve the meeting of the board of directors memorandum preparation, simple patent applications and conventional contract preparation, the real estate deal as well as to find potential oil or gas rental qualifications. But more important is the legal affairs from the external law firm lawyers to deal with.
In such an arrangement, the external law firms to handle almost all of the stakeholders, challenging the major legal affairs (also includes a lot of routine affairs). The process of selecting the firm usually involved in specialized or local legal counsel, if felt necessary, will supervise the acts of lawyers. The internal law clerk hardly what challenging affairs remote villages, they have often been regarded as legal occupation. This view about the internal law clerk position is shared by the mainstream law firm partner and non partnership law. Indeed, firms may be unable to become a partner in the partnership law relocated to non customers internal law clerk, doing so can consolidate lasting relationships with customers, while at the same time as solicitor provide a he can't cause much damage to the right place. Even if is rising in recent years the internal legal staff status (below will describe to) circumstances, the old attitude of the aftertaste still continue to exist in the part of today's lawyers, but its still exist, this attitude is quite wrong.
The internal legal staff in quality, size and importance of the system of promotion is largely affected by the economic situation, the economic situation also affected the law firm. In twentieth Century seventy, Large Firm is facing the sharp increase in regular activities and products liability litigation. During this period, the general counsel of the company and its law firm not only forced to familiar with the rules of many new requirements, but also more and more to active prevention rather than passive response law. The lawyers find themselves increasingly involved in legal guidance system (Legal compliance system) establishment and management, are more and more involved in the company planning to discuss the future forecast of economic activity on the meeting, so let the legal issues can be known in advance and prepare. First, because the internal legal staff, these important legal activities can not be entrusted to them.
In twentieth Century seventy or eighty, with the increase in the number of legal affairs and the growth of the normative activities and action, law firms submitted to the company's statement also increased dramatically. During this period, the rapid expansion of additional transaction has prompted the law firm. But, at the same time, many companies find that the need to control the cost. They are facing internal competition and external competition more and more intense, but also caused by the rapid changes in technology and government regulation problems. If the company intends to prosperous development, then improve the efficiency, downsizing and outsourcing cost control is very important. Cost conscious managers soon realized that legal costs are out of control, and decreased the most obvious of these costs is to improve the ability of internal legal staff to handle more incidental affairs, reduce the expensive external lawyers service needs.
The internal legal staff abilities and an independent law firm capability is not very different from what the. The general counsel must hire imaginative to enhance legal staff size and improve their quality. The salary must be improved; must make systematic efforts to attract more competent lawyer and training for them, and give them more challenging affairs. With the continuous improvement of the legal costs, more and more companies are determined to improve the quality of their internal legal staff.
First, many external lawyers to welcome such a trend, because this time the legal services has increased dramatically, improved internal legal staff can make a partner of the firm, non partnership law and lawyer assistant from the routine affairs more free. However, the development of a large number of internal law clerk quickly make the traditional relationship between the company and the firm became tense. Internal lawyer not only processing those previously by the law firm lawyers have good prospects of gain non partnership affairs, they also took the opportunity to prove the rationality of major investment previously made by individual partners.
In order to account for the most extreme situation, let us describe a senior partner in seventy's a law firm, the firm with a small in-house legal department of the company has historical relation. The partner in an enviable position. He obtained the management and board members personal trust. Over the years, the firm has almost all the affairs of the company, although there are a lot of affairs of the company are routine and are delegated to the senior non partnership law. Now, the company set up a special a new internal general counsel, and through the transaction to an increasingly sophisticated internal legal department and will be independent of the business by the firm at a lower cost to reduce the total cost of the law. A major source of legal affairs involving the company assumed to smaller companies often, conventional acquisition -- in order to obtain the desirable area or desirable. Such a plan is a major source of traditional law firm for-profit legal business. The first step in new general counsel is appointed a new hire in-house lawyers to assist the external firm in one or several acquisition transaction. After several times of business, told the outside lawyers said in-house lawyers now fully responsible for the acquisition and Xiang Zong Counsel law firms that report; if there is any important problems have will accept consulting. Slowly, in-house lawyers accept most of the acquisitions, most business in the absence of external firms to assist in case of completely by the in-house lawyers to deal with, the number of business that outside firms apparently fell.
In this situation, if a person was placed on the outside firms senior partner position, then it is easy to understand why there will be complaints and contradictions. A portion of external firms in fact trained in-house lawyers to take over of the business firm. If such a pattern in other fields like management professional affairs litigation, tax and securities management occurs repeatedly, then the relationship may become increasingly tense. Senior partner may have a history of contact with customers will attempt to make general counsel be fired or at least let his authority to return to the good old days cut. Generally speaking, such an effort will not succeed, because the general counsel has no obvious decline in the quality of the case effectively reduces the cost of legal services. Indeed, trying to subvert the general law consultant efforts could further make the traditional relationship more nervous, senior partner and external firm dissatisfaction is completely for the top management to understand, we can not expect top management would agree that a senior partner and chief legal advisor practices.
Once between lawyers and clients historic ties were relaxed and the independence of the internal lawyer is firmly established, to the company, the general counsel, it gradually with the other firm legal transaction so as to try to take the best price to obtain legal service optimization, which are becoming more and more popular. The result is a historic ties further weakening.
Today, most companies usually will give several different external legal affairs law firm to handle. Of course, many companies still maintain the historic relationship closely with specific firms who provide legal services for the persistence of large, they gave the legal fees each year up to tens or even several billion dollars. However, before this model has not a generation. Internal staff have many substantive issues these affairs authority, often including litigation process, and this kind of thing in the early is usually handled by outside lawyers. If the legal costs have risen, so this is because now the demand for legal services that provided by the external lawyers increased.
With the in-house lawyers more and more involved in the legal affairs assigned to competing firms, they are more directly influence the way of charging. The traditional way of charging process is based on the lawyers involved hourly rate basis. To view internal lawyer may charge by the hour to a skeptical attitude, because this way to encourage the plugging behavior personnel jumbled and bills in a transaction on the. Therefore, in-house lawyers may try to limit the number assigned to the lawyers, the supreme hour set to charge customers number -- the so-called "(Cap chargesCapped billing) "-- or that only certain lawyers can be delegated to the transaction. These control measures soon led to the end of firm was a common practice, is also the firm often delegate those inexperienced lawyer to a certain enterprise as part of their learning experience. The training of the new lawyer cost will not be passed on to the customer.
With the in-house lawyers have developed alternative sources of legal services, to create a law firm competition, there are different kinds of new charging techniques have been developed, which makes the charging scheme of different firms using direct comparison: fixed fee, cap fees, quantity discount mode (Volume discount arrangements) (for repetitive litigation dispute), incentive fee (In?JuanCentive billing)(A successful outcome fees than no successful results of charges)According to the value of the charge (Value billingAccording to the duty fee (,)Task billingLocal risk agency (), chargePartial contin?JuanGency fees), mixed charge (Blended ratesWait.
Development of in-house lawyers and law firms have intensified the competition between, because the internal lawyers have tried to the best prices to obtain professional external legal services required.

Five, modern large law firm overview

At this moment, this big city law firms and compared it with existing before generation of the traditional law firms will benefit us.
Scale. Today's law firms and seventy's law firm most obviously difference lies in the most modern law firm is a huge monster (Behomeths) -- hundreds of partners in offices around the world and a total of about one thousand or more lawyers.Skadden ArpsBefore the scale of the firm is described. In the2001Years, the third major domestic firms -- headquartered in ClevelandJones, Day, Reavis & Pogue-- have476Partners and976Non partnership law, with branch offices in thirteen other city. Fifth domestic firms in New YorkProskauer RoseThe limited liability partnership with151Partners and395Non partnership law. The row is located in Seattle's 100th in the name of the firmPreston, Gates & EllisThe limited liability partnership, it has in America eight city and Hongkong foreign base183Partners and163Non partnership law. In the 200th row is the headquarters located in New York BuffaloHodgson, RussThe limited liability partnership, has in USA five city96Partners and97Non partnership law. Article250The name of the firm in Washington D. C.Vener Lipfert, Bernhard, McPherson & Hand, CharteredThe firm, which has75Partners and57Non partnership law. A "medium-sized" firm today, although not clearly defined, but it certainly is a company with one hundred or more law firm.
These large firms to provide their customers with full service in many areas of the law, these areas from the employment law to complex litigation, from the real estate planning to organize complex business, they may risk analysis or open a new factory in Mongolia or Russia according to legal, economic and social problems of the North American Free Trade agreement to do business in Mexico involved. Law firm scale and diversification increases largely to provide services for a wide range of large open companies need results -- in order to ensure the normal legal affairs a lot of continue into company gate. In contrast, medium in size and smaller firms are turning to fine (Boutiques),Specialized in litigation or one or several areas of the law, and not like a large law firm that provides a full range of services.
The relationship between the partners. Such a scale is the result of personal relationship, widespread in the early years of the partner firms have largely disappeared. Large firms tend to be impersonal today. Many partners in large firms is not know many other partner's name have not seen their faces, it's not unusual. In the office sanatorium -- here, all partners will spend time with other people -- it is necessary to certain partners introduced to other people! Large firms and non individual has changed partners and non partnership law of motivation. Loyalty to a firm sense has disappeared, the money is important. If a firm teeter, why risk it will be good risk? To leave, if you can.
Management department organization (Departmentalization) and professional (Specialization). In a law firm, legal service is a series of differentiation activity. A firm may provide full range of services for their customers, but for a lawyer to single, the development of multiple areas of the law to keep the master is not possible in today. With professional practice areas as the basis, large firms are divided into a plurality of team (GroupsAnd (Department)Sections). This group of lawyers may constitute intellectual property team; some other groups may be skilled in trade affairs, commercial litigation, real estate and trust, environment etc.. A professional field of law may not have what contact and communication with other lawyers. For example, although a bit in the intellectual property department partners may not know those who work in the Litigation Department partner, but he knows other lawyers and intellectual property department and their close cooperation in the work. These relations may be other intellectual property experts will be extended to other office of the law firm. In other words, between the office of friendship and loyalty may exist across widely separated Department level. When a new non partnership law was to hire a firm, usually he will be assigned to a department, so he began to be incorporated into a professional. However, in order to make the new partnership law to find the one who most loved job, many firms are allowed to new partnership law conversion from one field to another area in a certain restrictions.
The increasing flow of partner. Compared to the forty or fifty years ago, in a lawyer today in a single firm spent his life is very rare. Today, many lawyers have two or three different partners, and they can be expected to further flow. When a successful partner in the face of a competitive firm's invitation, in his colleagues and his partners are not familiar with the case, he may feel without what pressure to remain in the original firm. Today, the measure of success is the development of customers, and these customers to maintain personal loyalty to partner, once the partners decide to seek more green pasture, so we can expect these customers will be with him. The flow of the valuable today is or mobile bills.
The partners may decide to leave a firm because of various reasons. They may be because some of the reasons for their current firm become disgruntled and open to find the other relationships. They may feel their personal rewards not fully return the number of business they bring. May also have been real or imaginary. Discontent is likely to be more prevalent. They might discover that organization structure firm and centralized institutions are too tight. They may just feel restless, it is time to go to the new environment.
Today, those who served as business solicit (RainmakerThe lawyer) or those who have developed special field valuable lawyers often received some replacement firm recommendations. A "search" may provide suggestions that have more green pastures in a competitive firm for a successful partners. Such a proposal is like, in a large number of flow period, a successful lawyer may take further flow -- even if he has not for the present situation has what dissatisfaction, it is not worth the get excited over a little thing.
In a professional area -- like the white-collar crime or intellectual property rights -- Practice of the Department and law firm partner to the whole team way flow to another firm, this is not what rare thing. This is like the small firms to more green pastures. When the Department of business solicitation who decided to leave, partner and non partnership law and large business customers may also decide to leave. A loss of one or more departments or teams of partner firms may find itself is the betrayal of serious injury, it can not be used as a separate entity to continue, because the other partner or departments also decided to quit.
Small firms appeal. The large firm partner might find themselves more and more economic and political activities of large firm limits. A much smaller firms seem to be an alternative to attract people's choice. This dissatisfaction may lead to the entire department or organization you split off to form a small professional firms. Sometimes, one or two flowing partners may themselves decided to set up a new firm and from external hire a solicitor. Smaller firms attraction is the senior partner will take control of their own destiny. They will both managers and business solicit. In a small firm, they may feel their operating costs will be lower, therefore, they will be able to seize the provided by their service and relationship more income. These separate firms may be with the original firms and partners continue to maintain good relations in the specific affairs.
A formal partnership agreement. Another result of firm growth brings is, today all large firms have a carefully drafted partnership agreement. Forty or fifty years ago, some partnership firm does not have what formal partnership agreement. In partnership law clause is mainly targeted at small firms contract, these terms will not be enough to solve practical problems arising in has hundreds of partners and non partnership law of large firms. There must be a clear specification after mandatory retirement policies and a death of partner how to deal with the. There must be expelled one not as a partner of the express right, a constraint all partners management structure. Since there are hundreds of partners, when a problem arises, a firm cannot rely on good faith individual partners and strong judgement to solve the problem. Interestingly, although large firms have many partners in a partnership law firm, but often hire external law firm to prepare for their partnership agreement. This can avoid the question the validity of partnership agreement may occur after the, but also to avoid the appearance of conflict of interest, and to ensure that these terms are objectively present.
Limitation of liability. With the increase in the number of firms of lawyers, those who feel dissatisfied customers give the possibility to practice improper claims also increased. Large firms will always for practice improper insurance huge, but due to the large number of large firms transaction lawyers are often dangerous, may be more than the insurance amount of a claim. In the2001The two hundred largest law firm years, about 2/3 have chosen the limited liability partnership, eliminating the risk responsibility of misconduct the innocent partners may on the other partner or non partnership law. Some firms have chosen occupation (companyProfessional corporationThe partnership (or occupation)Professional association), but a limited liability partnership is used to ensure the conservation of the absolute advantage of the most popular way for the innocent partner.
Centralized management. Large law firm management usually focus on a management committee, or in a single management partner, or often both. As a general partner of a group usually in the law firm management to play only a small role, they often are given in the larger issue of voting rights (such as member of the management committee elections or managing partner election or a particular partner whether should be expelled). When the general partner really have the right to vote when a thing, often influenced by firm voting interests size (although some partnership agreement stipulates the common law rules to the number is calculated on the basis of votes). According to the problems involved, may by majority vote, may also according to a higher percentage of the vote to decide. The general partner in a limited partnership management participation right and limited partners or shareholders rights in a similar law firm. 
Daily management firm has been awarded to the managing partner (this position is sometimes referred to as a director or executive director or make a similar title), and the important decisions made by the management committee. Usually, the managing partner has gradually grown in the firm, was influenced by the culture and the operation habits of view, but also by the business solicitation of respect. Managing partner of the same relative senior partners often is firm, although some managing partner is relatively young, but the other partners trust is usually higher than the managing partner of age is more important. Some firms have already tried to employ some non lawyers, managers, these managers have formal management training and experience, but these attempts are generally not very successful. Managing partner must ensure that internal operation smoothly. He is charged with operating a includes hundreds of lawyers and support staff may be thousands of corporate responsibility. Managing partner must ensure that the Secretary and assistant clerk, office space, computer equipment and similar other aspects to support the operation of scale. He must ensure that the cash flow is sufficient, the firm can obtain credit enable firms to ride out the storm, the bill can quickly and orderly settlement, conflicts of interest can be avoided (this is a big problem in large firms), confidentiality rules can be understood and implemented, the internal staff of contradiction can be resolve, charges are able to negotiate with the customer solve disputes can be solved, and charges. Managing partner may also involve staff problems, different types of poor performance or disgruntled partners talk, non partnership law promotion etc.. Managing partner is the official spokesman firm, between the often participate in or between potential customers at least know with larger negotiations and likely to hire people in the future communication.                                                
In most firms, managing partner status have farsightedness, prestige is lofty. In the firm growth period, this position is particularly attractive, very attractive, but when managing partner must face to shrink, and those who felt he should have a strong customer have more power in charge of setting on negotiations and deal with those who may be conceited and when the firm lacks natural loyalty business solicitation etc. trouble, this position is uninteresting multi. This is a time consuming job, some successful partners because of fears that if they spend most of their time devoted to internal affairs will affect their personal practice, therefore is not willing to shoulder these responsibilities. For this reason, some firms are more inclined to those near retirement and other lawyers -- when their share of the business is completed, they will be reluctant to put into practice all the time -- as the managing partner.
The management committee is the ultimate source of the partnership in power and decision-making. The committee often by the senior partner from firms with different office, department or field. Members usually produced by partner election. The committee is mainly used to review the firm operation and management act of a partner, occasionally also will solve the specific affairs have been generated.
In addition to all of the senior staff, have more than one office often for each branch appointed management personnel. These people are managing partner, known as the branch or branch; their duties involved partners and staff and staff management, supervision, sales branch range of branch range of consulting and so on.
The distribution of profits. Large law firm is of course an enterprise. In order to be successful, it must make those engaged in the important service lawyer it happy, especially those who constantly for firms to develop business lawyer -- also is business solicit. Perhaps no topic than partner compensation is more sensitive, more controversial, also can become the subject of internal talking and thinking about the firm. The method of determining the share between profits per partner also each are not identical. At one extreme (provide for oneselfYou-eat-what-you-kill) method, this method will total income as equally allocated to individual partners. The other extreme is a lock step (Lock-step) method, all of the partners according to such a method with the same qualifications obtained the same share regardless of their output. A somewhat similar with this alternative method is the direct way (percentageStraight percentage): one has in the partnership1.775%Equity partners will receive1.775%Net profit. These are extreme; it is far more common for such methods: qualifications or other factors as the year-end distribution Foundation provides a basic payment plus on two variables -- to attract business and charge the bill -- is based on a measure of. These bonus may occupy most of the partners annual income.
Those who have the discretionary compensation system firms may be many subjective factors into the payment of discretion. These factors include the firm's overall service or income, future potential, the protection, the other partners active ones will be firm in pleasing the public eye, and customer satisfaction (that is to say, at reasonable prices to provide customers with the largest income, so as to strengthen the long-term relationship with customer specific). Once a firm abandoned the calculation method of compensation mechanism, so a major problem then becomes who make discretion. Most of these firms have a Remuneration Committee (Compensation committee), but the members of the committee may not be suitable to the discretionary bonus. In some firms, managing partner and Management Committee may perform this function. To perform this function if the Remuneration Committee, the important point is that the Commission should go to work like the management committee and the managing partner, this is because if followed by the management committee and the Remuneration Committee of the policy is not consistent, then the individual partners will almost certainly follow money instead of management personnel.
A key customers as partners reasonably expect him to do so should be rewarded. Such incentives may be higher in this year he/She provides for the customer service or in the service. This finding bonus (Finding bonus) may last for many years. However, if the other lawyers to provide services for the customers to become long-term clients of the firm and the client, a finding that bonuses continue increasingly questioned, because those are the ones that actually completed these lawyers have the customers become the long-term customers with reason.
Large law firms in the non partnership law to a list as the foundation to get paid, this list is designed based on years of service. However, those who provide additional services to non partnership law may get a special bonus, or be promoted to the senior ranks and is likely to become a partner before their peers.
The expelled partner. Once, the ultimate goal of every non partnership law is to become a partner. Promoted to partner into a secure job and income of the essence of life insurance. But everything is no longer. Those who become the most low output of the partners will soon be fired. The partners often provided by management committee resolution and is often the partners voted to expel partner. When one partner was found to rest on our laurels instead of keeping pace with the times and make a firm enough to lose an important customer errors, then the firm will not hesitate to exercise this authority. The primary partner of a large Chicago law firm to complain one of the authors of this paper have vividly reflect this point, the partners complain only in their firms feel occupation safety lawyers who work three or four, five years (before they become partners) non partnership law. Although, the partner is mainly responsible for the evidence in the product responsibility lawsuit in a large amount of preparation, but he felt rather than non partner lawyer (who are employees) to his lack of occupation safety.
Mandatory retirement. Retirement issues also need to deal with partner of the law firm. Many firms have the mandatory retirement age and the age, usually before the recession, the period in which the firm would expect partners will gradually reduce their professional activities and the persistent customer transfer to the firm in younger members. The critical age is set at60Even more young. The firm also has a formal retirement plans, usually has a defined contribution type. In earlier times, some firms try not prepared to fund welfare plan (fixedDefined benefit plan), but these plans effectively for the senior partner's retirement fund obligations imposed on those in the profitability of the younger partner. Some young partners decide to flow to other firms to avoid reducing their compensation, this reduction is based on firm retirement plans pay necessary retired partner.
The change of the role of non partnership law. In the modern law firm, non partnership law handle many routine affairs in the office. This point today and the past is the same. Historically, most non partnership law can realistically be expected if their work is satisfactory, then they will eventually be promoted to partner level. This is not necessarily true in today. The number of non - a partnership law firm hired may than they actually want to improve for the number of non partnership law partner more. You can expect some people will give up halfway, and not in accordance with the hope have a good result, some people may be other firms to poach.
Time to make resolutions to partner in number of firms, internal affairs is firm will promote non partnership law, will fire them, until a year or so to make the final decision or provide the main determinants of permanent non partnership law office for their. In modern firms, often have non partnership law of natural loss amount.1999Years, the average loss rate of large firms is18.5%The numbers in the highest peak2000Year promotion23.64%, to2001Years (because of tighter labor markets) has plummeted as15.97%.
According to the firm's work burden, the number of non partnership law firms hire with different periods and rapid change. With the expansion of business activities, in the field of companies and transactions in non partnership law will increase; when a recession, these areas of non partnership law may be fired or transfer, and work in the field of non litigation and bankruptcy of partnership law may increase. Some firms hope to maintain about three or four non partnership law and a busy partner such a ratio; however, due to the changes between different time and different firms is so large that the number does not have what meaning. Once the routine legal matters can reduce the use rate of the customer to closely monitor the law firm fees, firms may find that keep the current non partnership law level is not feasible. Some people may be fired, and the number of employed new partnership law will also decline.2001Years, probably due to the decline in business cuts and new hiring, the number of partners many firms exceeded the number of non partnership law. Many firms in the2001Years has the sense to lower the ratio between non partnership lawyer and partner apparently led to the2001The number of positions for law school graduates to provide clearly less than1997Years to2000Years every year provides the number of positions.
From the non partnership law training and promotion standpoint, firms naturally more love by assigning non partnership law to deal with customer transaction and the part of the cost of their transfer to the customer. However, with the implementation of the customer's cost control becomes more and more strict, the opportunity has become less and less. Now the guidance to pay by the firm, the firm has increased dramatically in the non partnership law person of investment. The firm is also found, because firms that invest in non partner lawyers fees, the old "no promotion, leaving" rule is often no longer meets the interests of the firm. For those who are not promoted to partner has valuable non partnership law in developing a variety of retention policy. For example, some firms have been proposed to become fully partner of the three stage process to replace the original two stage process; in addition, the firm has also created a permanent non partner position, so that they can in the absence of promotion for the partners of the partnership law on non investment are not wasted.
Another major factor is the law firm policy related and non partnership law effect, this factor is the number of female law school graduate, growth, in the law school from the age of sixty is almost zero to fifty percent (or more). Firms have found that in order to retain those who raise children and engaged in the legal occupation female non partnership law, it is necessary to make pregnancy and child policy. Even so, in most law firms in partnership law of the rate of loss than women is higher than their female counterparts, and became the senior partner from the number of women employed women than non quantitative partnership law number estimated much less than in the past ten years.
Some of the big city firms have tried joint or cooperative non partnership law culture, especially in the aspect of procedure and transaction. From the participation of young non partnership firm lawyers may be required to participate in high intensity days will be discussed, these discussions will be guided by the important trial lawyers from the firm. This discussion will likely relates to role play (Role-making), simulation of hearing and cross examination and transaction handling real. If competition is fierce words between firms, so this kind of partnership success of efforts to still need to rub one's eyes and wait, this is because the training costs entirely by firms rather than the client to bear.
Salary and equity partner partner. The customer will not irrational more like partners rather than non partner lawyer to handle the legal affairs of their. Therefore, there are some power to make reduce non partnership law probation and appoint more young lawyer as partners so that they can be directly and efficiently to deal with customers. At the same time, achievements and experience their impossible for them to partner with much more experienced than they were at the same level of income share firm provides a reason. Even if they are called partners, their reward is likely to continue to pay and annual bonus based.
In order to try to reconcile these conflicting objectives, many firms have created two positions: equity partners (partnerEquity partners) is the senior partner who control firms and occupied the dominant position in the firm's success, and the salary partners (Income partners) are those who don't share the firm enterprise risk, make salary plus bonus -- this way and previously senior non partnership law by the same way -- young lawyer. A part of the salary partners have firm profit. They participate in the office meeting, in most offices Committee and will be informed the firm's economic prospects. However, they (the bonus range) do not share the losses or gains, may not be in the management and remuneration committees important firm. Usually, the salary partners will eventually be promoted to equity partners, but some salary partners may in their entire career in law will remain in this position.
Who have been selected as the occupation company or a limited liability company firm may create a similar two level system, shareholders and senior shareholders. Limited liability company (LLC) firms will be those basically is described for salary partners sharing partnership law (nonParticipating association), it is a when in use do not consider neutral vocabulary of the legal form of the law firm. Some firms have not formally created two partners, but through the internal rules are to achieve the same result.
Permanent non partnership law. In addition to making compensation partners such intermediate positions, some firms also give up for non partnership law "no promotion, leaving" rule, they have been through the non partnership law no deadline to stay so as to compensate them for the training cost. If a non partnership law has been a professional or more professional show his ability, but is not thought to have partners -- especially in soliciting business -- potential, so firms may be a way for him to pay/She offered a permanent position. The lawyer's name may be a senior lawyer (Se?JuanNior attorneySenior Consultant (or)Senior Counsel), although some people may simply be called a staff attorney (Staff attorney) while others called more honorable title -- Consultant (Coun?JuanSEL). These jobs could be part-time or full-time. Those responsible for taking care of the children a lot of duty female lawyers may choose such a position in their family responsibilities with the expectation of the full-time work when feasible conversion to equity partnerships.
In larger firms, neither the number nor the non partner partnership law lawyer and not. For example,2001The largest law firm in the year,Akin GumpHave350Partners and477Non partnership law) only65"Other" lawyer.Holland & KnightHave740Partners and488Non partnership law) a228"Other" lawyer. A small number of firms, SeattleLane PowellHave104Partners and43Non partnership law) in the "other" category in the29People. Many lawyers refused to disclose the number of lawyers they employ neither partner not a partnership law, listed as "the other" employees did not detail the role played by them.

Alternative six, law firms: individual practice and contract law

Many law students are in rumor high wages and countless jobs based on the choice of law occupation and the. Whether it is in the late eighty's of twentieth Century or in the2001Years, employment law firm has a greater decline. Many in these recessionary period into the occupation market graduates once can't immediately get jobs, they will suffer a huge blow. The blow for some students is particularly serious, these students are borrowing to complete their legal education and face in the absence of any source income going to repay the loan prospects. Of course, the legal position is not completely disappeared. Graduated from the more respectable law school Cum Laude still can find jobs, but those in the middle and lower reaches of the students in their graduating class especially the students who never so prominent law school graduates are facing disaster.
If a new lawyer in a few months to strain every nerve but still can't find a job in the office, so he should be how? Of course, one may give up practicing the idea into the enterprise management, can also open their own business or going back to school to learn some other things. This is not necessarily a bad idea, because many do a job with skill and ease in the government and enterprise position have a law degree, although they never practice. However, the concern here is a recent graduate with no firm is willing to provide an instant way to work for it, he is able to carry out the practice of law. Find work firms smaller one is always possible in a big city or in a small community (or in May and a hope to alleviate the burden of individual practicing lawyers working together). In addition, a person also can be two ways to get experience -- these experiences can be opened as a lawyer in the future work opportunities, these two approaches is the individual practice and to temporary or contract lawyer to work.
One has passed the examination for the qualification as a lawyer's lawyer was always likely to be listed and in the absence of any considerable prior experience (except perhaps in the law school, in a law firm working for a summer vacation) case began practicing law. In the specific environment of today, this will undoubtedly make it becomes the difficult path, although it was an acceptable way to practice, especially in smaller communities.
General opinion today is, a young lawyer at the start of the careful guidance should spend some time in a more experience before practicing lawyer apprentice. Legal apprenticeship is a necessary condition for feasible in today, this is because the law school often do not try to teach law students who carry out legal practice and the proxy client secular and practical details. A recent law school graduates may not know the court in what place, do not know how to use a common expression. Written by USA Lawyers Association in a few years ago (McCreight ReportThe McCrate Report) has suggested that the school should provide more detailed, practical training, but in the foreseeable future, this is not likely to happen.
When the individual practice seriously considered, the lawyers quickly realize that if they don't have the customer will starve to death. Some city some allow lawyers contracted with lower fees to the indigent criminal defendants project; however, this can guarantee the minimum cost of living. The lawyer must obtain the paying customers in order to survive. Unfortunately, only by establishing an office waiting for the customer, who is unlikely to win many customers. These people are often the "human network" for paying customers, these customers largely through the recommendation of others or based on personal or family, neighborhood to select counsel. An experience little or no experience of individual practitioners, although it is likely to survive, but very difficult.
Another possible approach is to some lawyers and law firms for some temporary jobs, these lawyers and law firms need to have some immediate assistance to help them with some work at present, but they cannot afford to hire permanent staff. An access to such a person is called the contract law (Contract lawyer). Contract attorneys production appears to be a recent phenomenon. Such an idea is basically quite simple. Generally speaking, an occupation of the charged a fee and provide qualified lawyers to law firms or individual practitioners. These lawyers employed by the occupation introduction, responsible for the occupation tax, withholding (introduced byWithholding) and other related affairs and employment. Such a transaction success obviously depends on the presence of non employment qualification of lawyer firm on temporary help supply and demand. There are many unable to find work in the office are not willing to experience the individual practicing hard lawyers have found, do a contract attorneys may be more bridges to traditional legal practice. Contract law is also called temporary employees (Temps() or temporary employeesTemporaries).
From the success of individual practitioners and small firm standpoint, temporary employees is very attractive, because they make the lawyer service temporary or seasonal demand can be satisfied without hiring permanent staff. Those who are facing today is likely to be a temporary additional business firms recognize20Under the late eighty's has occurred (Over-staffingThe problem). Hiring of temporary employees decision could drive by the redundancy, pregnant women turnover, seasonal growth of special projects or business -- like three or four months tax offices -- and other factors. In litigation practice of individual practitioners may be specialized for temporary staff to assist them, guide them to work but the pay occupation for a small fee -- compared to the service.
In a particular case, a temporary employees could be completed for several months in a an experienced lawyer under the guidance of. The employee can not only learn the know-how for legal practice, and may get a permanent job in all cases after. Even without a permanent position, the employee has gained valuable experience and access to a firm's history, there may be a letter of recommendation. As a temporary employee attraction is not paid, they pay the billing by the hour and more likely than not, assistant of the lawyer paid too much. However, some income is better than no income at all, and temporary employees experience may well lead to the future work as, either directly or through recommendation.
The use of temporary lawyers for both contract attorneys or hire firm or individual practitioners may have some moral and legal issues. If a temporary employee to work longer in a lawyer or law firm under the leadership of a period of time, then can produce such a problem is to tax and non employment to the temporary employees have become formal employees. Although also will have moral problems, but the use of temporary employees this is so new that for all the consequences of this phenomenon has not been studied. Obviously, have temporary employees for a case one party should not be accepted in the same case on the other side of the employment. But the moral problems of all types are lack of extreme circumstances this can be expected.

Seven, the legal service of prime of life:1998-2000

Large law firm profitability depends on business operation in the overall economy and especially the business operation of the legal occupation. In good years, large law firm had indeed profitable.1998Years,1999Like this year, and2000Years is a turning point in the year, and it will be discussed2001Years is a recession year.
In the1998Years to2000In this period, "high-tech" prosperity involves two intensive field, the two fields produced a large amount of capital investment and a large number of legal affairs. The first area is the communication of prosperity, America communications system upgrade.1969The Telecommunications Act (The Telecommuni?JuanCations Act) has lifted the phone industry regulation and to remove the restriction of competition rules. In a highly competitive environment, to produce a number of emerging enterprises to engage in the development of broadband wireless communication systems and nationwide, in1997Years to2000Years, these industries bring investment as high as1.5Trillion. The second field is used, the birth of Internet computer, Internet and usually said electronic communication. This area was soon called"Dot.com"Industry, although the field has attracted more attention from the public, the dollars involved a total investment of less than communication field. In a relatively short period of time, in these two areas in the formation of the hundreds of new public Holding Company.
Vc firm is a modern tool for financing into new businesses. They provide seed capital for start-up company, then in the start-up company has absorbed the initial sale of securities investment arrangements. In its heyday, the birth of the new company and its shares to the public the difference between the time of only nine months. When the new company after the listing, the Vc firm will often withdraw all its original investment, also took a lot of preferred stock status; then it would put money back into the new company to repeat the process.1998Years to1999Between the years, either communication or"Dot.com"Area of the company's share price rose sharply, creating a lot of overnight millionaires, but there is not familiar with the market from members of the public to absorb a large number of investment. According to estimates, the Vc firm of this period the annual internal rate of return of about54%.

 From the "commercial foundation for students: the key concepts and application" (BUsiness Basics for Law Students:Essential Concepts And Applications,Aspen Publishers;3edition (2002))The English.