Keep your finger on the legal world's pulse

Law firms are experiencing a strong start in 2024 after a lackluster 2023, with a 1.9% increase in demand for legal services in the first quarter. Billing rates have also risen by 6.6% compared to last year. Midsize law firms have seen significant growth in revenue and profits, with a 5.7% increase in revenue and a 5.8% rise in profits. The growth in demand for legal services is mainly driven by litigation, which saw a 3.8% increase in the first quarter. However, demand for corporate practices remains slow, with only a 0.6% growth. Law firms are investing more in technology, with a 6.6% increase in spending. It remains to be seen whether law firms will be able to collect on the higher billing rates imposed in 2024. Realization, which refers to the proportion of billed work that firms collect on, was down in 2023. Technology integration, particularly artificial intelligence, is becoming more prevalent in the legal industry. Overall, law firms are optimistic about the future and are hopeful for continued growth in 2024.

 

Reuters

The field of legal issues surrounding artificial intelligence (AI) is rapidly expanding, particularly at law firms like Epstein Becker & Green. Bradley Merrill Thompson, the firm's AI practice leader, reports a significant increase in AI-related lawsuits, with the firm having been hired for over 200 cases by 2023. These lawsuits cover various areas, but especially focus on healthcare and labor/employment. This growth is part of a broader trend where law firms are forming specialized teams to tackle the legal challenges AI presents, involving issues like copyright, bias, and data use. In response to the complexities of AI, some lawyers, including Thompson, are pursuing further education to better understand and address AI-related legal issues. Firms are assembling multidisciplinary teams that include not just legal experts but also data and social scientists to comprehensively approach these cases. For example, Epstein Becker & Green has dedicated 60 attorneys to its AI group, while Gamma Law has a smaller team focused on content-related AI issues like licensing and copyright. Law firms are also educating their clients about AI legal issues, developing policies for AI usage, and ensuring compliance with intellectual property and data protection laws. With AI's pervasive impact across various sectors, the legal profession is gearing up for a surge in demand for specialized legal services to address the challenges and opportunities presented by AI technologies.

 

ABA Journal

NetDocuments' Michelle Spencer, an expert with 40 years of legal experience, provides valuable recommendations for implementing generative artificial intelligence (AI) tools in the legal industry. She emphasizes the importance of addressing security concerns and customizing AI tools to match specific practice areas and work styles. Spencer advises attorneys to identify specific tasks or processes that can be delegated to AI tools and highlights the customizability of NetDocuments' AI tool suite. She also stresses the need for laying the groundwork for AI implementation, including establishing policies and safety nets. Spencer recommends listening to experienced individuals in the legal space and maintaining a human-in-the-loop approach, as humans play an essential role in reviewing AI outputs. NetDocuments' close relationship with Microsoft ensures security and integration with Microsoft products. Spencer concludes by highlighting the potential of AI in the legal industry while acknowledging the importance of ethical considerations and maintaining confidentiality and privacy.

 

Above the Law

Kim Mallett, a columnist for Reuters Legal News and Westlaw Today, emphasizes the importance of a well-crafted business plan for law firm partners, particularly first-generation lawyers of color who may not have established client relationships. She argues that understanding the business side of law is crucial for aligning practice expertise with profitability. A business plan acts as a blueprint for expanding practices, setting financial goals, and effectively managing resources. It is also vital for attracting and retaining clients, and for focusing efforts on specific geographical areas. As careers progress, Mallett advises that business plans should evolve to reflect new knowledge and growth. Such plans are essential not only for achieving career goals but also for facilitating successful integration into new firms and assisting in compensation assessments. Mallett highlights that for women of color, in particular, a robust business plan is a critical tool for demonstrating value and driving revenue within their law firms.

 

Reuters

Anthony Froio, the managing partner at Robins Kaplan, underscores the benefits of working at a trial-focused law firm, particularly for young trial attorneys looking to develop their courtroom skills. He points out that such firms commit to trial excellence and offer alternative fee arrangements, diverse trial teams, and significant roles for young lawyers in managing cases. Robins Kaplan differentiates itself from many Big Law firms by ensuring that associates are actively involved in all aspects of a trial, from inception to resolution, allowing them to gain essential hands-on experience. The firm supports this development through a comprehensive trial skills training program and even provides a dedicated courtroom for practice. By prioritizing client and case budgets, Robins Kaplan creates an environment that nurtures the professional growth of young trial attorneys, enabling them to take on substantial responsibilities and contribute meaningfully to their teams. This approach not only enhances their skill sets but also boosts their confidence in handling trials.

 

Above the Law

Davis Polk & Wardwell is set to increase lateral partner hiring and boost pay for top lawyers. The firm plans to target hires in London, Northern California, and its asset management practice. Davis Polk's move is in response to the intense competition for talent among the largest law firms. Firm leader Neil Barr expects significant moves across the lateral partner market in the next 18 months. The firm aims to shape the industry through lateral activity. Davis Polk's Wall Street rivals have also adjusted pay and ramped up hiring. Davis Polk's partners are currently discussing additional changes to its compensation structure. Barr's plan for more lateral hiring marks a change for Davis Polk, which historically has not been an active player in the talent war.

 

Bloomberg Law

Bloomberg Tax

The Federal Communications Commission (FCC) is moving to prevent Huawei Technologies, ZTE and other foreign companies deemed to pose U.S. national security concerns from certifying wireless equipment. The new proposal, which will be voted on later this month, would permanently prohibit Huawei and other entities on an FCC list of companies posing national security risks “from playing any role in the equipment authorization program while also providing the FCC and its national security partners the necessary tools to safeguard this important process,” the agency said. FCC chairwoman Jessica Rosenworcel said in a statement the agency “must ensure that our equipment authorization program and those entrusted with administering it can rise to the challenge posed by persistent and ever-changing security and supply chain threats.”

 

South China Morning Post

Eighteen California children, aged 8 to 17, have filed a lawsuit against the U.S. government and the federal Environmental Protection Agency (EPA), alleging that the nation's climate policies discriminate against minors and violate their constitutional rights. The children argue that the government's environmental policies have allowed dangerous levels of greenhouse gases to be released, endangering their well-being and future. However, the Department of Justice has petitioned the court to dismiss the lawsuit, claiming that the court lacks the authority to make sweeping public policy changes. The judge will rule on whether the case can proceed to trial. The plaintiffs argue that the EPA's analyses of air pollution and greenhouse gases value the lives of adults more than those of children. They are calling for the U.S. government to stop burning fossil fuels by 2050 to reduce carbon dioxide levels in the atmosphere. The children hope that their lawsuit will make a difference and protect future generations from the impacts of climate change.

 

Los Angeles Times

A federal judge has approved a $62m class-action settlement in the Google location data lawsuit. The lawsuit, filed in 2018, alleged that Google violated Californian's constitutional right to privacy by collecting user-location data despite users disabling "location history." The settlement covers all users whose location data was collected while being opted out from January 1, 2014, through the notice date. As part of the settlement, Google will notify all users with location history enabled and maintain a policy to automatically delete that data after 18 months. Twenty-one nonprofit recipients will receive settlement funds to further data privacy interests. Counsel for the class was awarded $18.6m in attorneys' fees and class representatives received a service award of $5,000 each. The settlement approval was granted on May 3, 2024.

 

Bloomberg Law

New York Attorney General Letitia James has filed a lawsuit against anti-abortion group Heartbeat International and 11 crisis pregnancy centers for misleading women by claiming to provide a treatment reversing the effects of the abortion pill mifepristone. James has asked the court to block the group and centers from advertising abortion pill reversal and award damages. The lawsuit comes as the U.S. Supreme Court is considering a case brought by abortion opponents seeking to restrict the availability of mifepristone nationwide. Heartbeat International is an international anti-abortion group affiliated with over 2,000 crisis pregnancy centers. The American College of Obstetricians and Gynecologists has stated that abortion pill reversal is not supported by science.

 

Reuters

A U.S. appeals court has lifted a lower court's order blocking a land exchange necessary for the construction of a major clean-energy transmission line through a Mississippi River wildlife refuge. The Chicago-based 7th U.S. Circuit Court of Appeals ruled that the preliminary injunction blocking work on the Cardinal-Hickory Creek high voltage line was not justified. The decision allows developers ITC Midwest and Dairyland Power Cooperative to proceed with the project, which aims to connect Iowa and Wisconsin. Environmental groups had filed a lawsuit claiming that the land swap would harm floodplains and wildlife habitat. The land exchange, approved by the federal government, involves swapping 20 acres of refuge land for 35 acres elsewhere. "The developers of the 102-mile power line say it will connect over 160 renewable energy projects to the Midwestern energy grid once complete," reports Reuters.

 

Reuters

A federal lawsuit challenging North Carolina's photo voter identification law is set to go to trial. The trial will focus on whether the requirement unlawfully discriminates against Black and Hispanic citizens or serves legitimate state interests to boost public confidence in elections. The trial comes after the state NAACP and several local chapters sued over the voter ID law enacted by the Republican-dominated General Assembly. The law was delayed until last year's municipal elections due to litigation. The trial is expected to last several days, with a ruling from U.S. District Judge Loretta Biggs expected later. The NAACP lawyers argue that the voter ID requirement violates the U.S. Constitution and the Voting Rights Act. Attorneys for the state and local chapters of the civil rights group cite data showing racial disparities in qualifying IDs. Republican legislative leaders and State Board of Elections members defend the law, stating that it imposes only a minimal burden on voters. The trial will determine whether the requirement will be blocked in the fall.

 

U.S. News