Law firm revenue in the U.S. will fall 5 to 10 percent this year even after demand increased in the third quarter, according to Citi Private Bank.

Law firms that rely heavily on financial-services clients will be hurt the most, said Dan DiPietro, head of client relations for the bank’s Law Firm Group in New York.

More lawyers lost their jobs in the third quarter than in the second, according to DiPietro, who says some law firms are now eliminating jobs at the partner level, including so-called equity partners as well as partners who are not owners.

“Some of the tough-love conversations are happening already, and there’s every reason to believe they will continue,” DiPietro said. Continue Reading »
Law Firm Revenue May Drop as Much as 10% This Year

Earlier this week, the U.S. Supreme Court heard arguments about the federal “honest services” law, passed back in 1988. The law says, basically, that it’s illegal “to deprive another of the intangible right of honest services.” It’s a crime to cheat customers, take bribes and kickbacks, etc. It’s frequently been used to prosecute government officials or corporate executives.
But some lawyers say it’s way too broad — that essentially anyone in America could be prosecuted in the federal courts, should your local U.S. attorney feel the itch. As the Times noted:

Justice Steven G. Breyer estimated that there are 150 million workers in the United States and that perhaps 140 million of them could be prosecuted under the government’s interpretation of the law. Continue Reading »
Do we need an “honest services” law?