June 16, 2009

Women In E-Discovery Monthly Meeting

Submitted by Susan Chin

6/18/09 (noon until about 1:15 p.m.)

Location: Morrison & Foerster
1290 Avenue of Americas
N.Y., NY

Speaker & Topic: Julie Grantham, General Counsel of Scarab Consulting

"Technical Basics of Forensics and the Quantifiable and Scalability for a Clent's Case"

Cost: Program & Lunch - Free

RSVP Required: newyorkcity@womeninediscovery.com

For more info, go to www.womeninediscovery.com

(The mission of the organization is to help women (attorneys and non-attorneys such as technical consultants) in e-discovery. The organization has a non solicitation rule so attendees are not subjected to marketing pitches, etc.)

June 14, 2009

Networking: Continued…

Submitted by Amy Gewirtz, Esq.
Director, Pace Law School New Directions Program
Member, NYSBA Committee for Lawyers in Transition

I wrote an entry for this blog a few months ago regarding the importance of networking [“Networking”; 3/2/09 –Ed.]. As this still continues to be my favorite topic and job-searching strategy, I wanted to add two additional thoughts.

This morning, I attended a breakfast for small business owners in Westchester. One of the panelists has been, and continues to be, a presenter with Pace’s New Directions program. He is a partner in a Westchester law firm that, among other practice areas, advises small businesses. We have had frequent discussions about both his professional and personal philosophies and I have tremendous respect for him in both areas. As we “networked” this morning, he told me that the best networking advice he had ever heard was that networking is about helping others. I couldn’t agree more. As I said in my earlier piece: “networking should be thought of as relationship-building. You never know when you might be in a position to offer assistance to the individual from whom you are currently seeking assistance.” This is so true, and is a very helpful way of viewing this process. Networking can be very intimidating as there is a common perception that networking means asking for a favor of some sort. If you can turn this uncomfortable thought on its ear, and think about how you might assist someone else, that’s networking at its best.

The second piece of helpful networking advice was delivered, unbeknownst to the individuals, in the parking lot as I left the breakfast. I overheard two women discussing the concept of networking. One said to the other: “networking takes time”; the other woman nodded in agreement, saying: “you can’t fast-track relationships.” I reflected on this exchange as I drove to work and it really struck me how important it is to understand this simple statement. I often hear “I’ve networked and networked till I’m blue in the face and nothing’s come of it.” It is very important to let relationships unfold gradually. Don’t be too direct about your job search the first time you meet someone—you run the risk of putting him/her off. “Never let them see you sweat” was a tag line from an old television commercial (for a deodorant, I think?). Always keep this in mind.

It can feel extremely frustrating to put yourself out there by attending events, going on informational interviews, etc., and perhaps not getting any direct and immediate leads. However, you NEVER know when or where an opportunity will arise—that’s the beauty, (yes, beauty!) of networking. Please don’t give up—at worst, you will have met someone new and, perhaps, been able to be of assistance.

May 30, 2009

Refresh Office Software and Legal Research Skills

Submitted by Susan Chin

The following information may be useful to re-entry attorneys who need to refresh their office software and legal research skills:

Office Software

Microsoft’s Office software (Word, Excel, PowerPoint, etc.) is used in most law firms. Free online demonstrations and training are available at www.office.microsoft.com.

Legal Research

Free legal research is available to all NYSBA members at www.loislaw.com. Free online training is available.

At www.lexisnexis.com, free online training and free downloadable user guides are available to the public. No sign in is required.

At www.westlaw.com, free downloadable user guides are available to the public. Sign in is required for online training.

Free training classes of both Lexis and Westlaw are available at NY County Lawyers Association to both members and non-members. Reservations are required at www.nycla.org.

Free use of Lexis and Westlaw (basic subscription only) is available at both NY County Lawyers Association and the NYC Bar Association to dues paying members.

Free use of Lexis and/or Westlaw is available to the public at "public access libraries" which can be found at www.nycourts.gov/lawlibraries/publicaccess.shtml.

In addition, free case law can be found at ten websites which are described in an article by Mr. Robert J. Ambrogi and published in the May 2009 issue of Law Technology News at www.lawtechnews.com/r5/showkiosk.asp?listing_id=3184967. It is also attached as a pdf file.

May 9, 2009

Friends and Friendship

Submitted by Deb Volberg Pagnotta
Deb Volberg Pagnotta, an AV-rated lawyer, is President of Interfacet, Inc., which trains employers and employees on various employment issues. Contact info: 914.997.8888 or info@interfacet.com

A friend in need is a friend indeed. As you move through your career transitions, your relationships with friends will change. You will make some new friends, lose some old friends, rediscover some friends you lost many years ago, and learn who in fact is a friend. Some of this may be painful, some joyful, and some deeply puzzling. But like death and taxes, it is inevitable.

We have different layers, different groups of friends: people we grew up with, went to school with, had adventures with, maybe old lovers (maybe not), those we’ve worked with on various projects, neighbors, our children’s parents, our colleagues, and others we’ve met and struck up relationships with from all the diverse places in which we operate. I know I’ve missed groups – feel free to fill in the blanks. For career transition purposes, I’m going to focus on several groups of friends: those at work, old friends, and new. I spend the most time on work friends, because I think it is there that transitioners (or perhaps just me) find the most painful challenges.

Work: As you move through career transition, you will find that your collegial relationships will change in several ways. As we head into desperate times, we tend to form close, emotional bonds with our coworkers – we are scared, we share gossip, we look for reassurance, we are in this thing together. It is well-known that being together in a high-stress situation creates swift powerful bonds, hence those close friendships between police partners, military personnel, athletes, lawyers trying a case together. You and your co-workers share an experience unique to this group, every nuance, every tid-bit of information, every development is avidly shared. At the same time, in financial crisis, our coworkers also become our competitors: is the firm is going to layoff 20%, will it be me….or Jim down the hallway? And, what, if anything, should I do to protect myself and my family, even if it is at the expense of Jim?

Loyalties become strained and may indeed break. When our livelihoods are threatened, when our families are placed at risk, we frequently circle our own wagons. And this might not include in the interests of previously very close friends. Let’s say there will be only one position remaining for the real estate lawyer in the office, where there used to be two – you and “Jane.” You and Jane have been friends for 10 years, you brought her into the firm, you covered each other through maternity leave, through your parents dying, through her divorce and your breast cancer. And now, it comes down to this competition. It is a hard, painful path you are on. You want only the best for her, but you want it for yourself as well.

Remember this. You cannot control what Jane does; you cannot control what the firm does; you cannot control how you feel. But, you can allow yourself to understand this dilemma and you can attempt to move through this with grace, and humor, and compassion. If Jane gets the position and you get laid off, you are permitted to be devastated and sad and hurt and envious. If you get the position instead, you are allowed to be enormously relieved, although you may feel enormously guilty at the same time. The trick is to allow yourself the full gamut of emotions and feelings, while conducting yourself rightly.

There are no hard and fast rules. If you are the one to remain standing at the job, you can look for ways to continue to help Jane. You can send her other job leads. You can reach out to her. You can sympathize with her. You can understand her hurt and anger and distress at being laid off. In Buddhism, there is the concept that you must take care of yourself first, not to the exclusion of others, but with the idea that if you do not take care of yourself, you cannot properly help take care of others. If you are the one to be laid off, you can be gracious to Jane, but you also are allowed to protect yourself against additional pain. If it hurts you to see her, or spend time with her, you do not have to. It is not your job to assuage her guilt, nor is it her job to make things right for you.

It is a difficult balance, even without taking into consideration whether Jane acted “rightly” throughout this process. In one of the work transitions I went through – a change of political administration resulting in hundreds of colleagues losing their jobs – one of the lowest points was seeing coworkers deliberately sabotage each other, with the hopes that somebody else’s departure might enhance their own employment chances. It happens, and it hurts. Recently, my 8-year daughter Jenlu had an issue with a girl she has known for years, “Kylie.” Kylie, whom my daughter has adored, is a social butterfly and has many times, at a party or other occasions with other kids, walked away from my daughter to hold hands with and play with another girl, leaving my child sad and lonely on the sidelines. Jenlu struggled to understand how she can love Kylie so much, and Kylie repeatedly assured her they are “best friends,” but then acted in a hurtful manner – intentionally or otherwise, it was in the end unimportant. I told Jenlu: “you should look at how a person acts, not what they say. If Kylie tells you over and over she is your friend, but doesn’t ACT like your friend, she’s NOT your friend, and you don’t have to keep agreeing to playdates with her. You can say no.” This was a huge relief to Jenlu, who now can simply observe how Kylie acts, and then is free to make her own choices how to respond. If a colleague acts in a hurtful manner, no matter their intent (and it may be utterly benign, or simply in their own self-interest and not yours), you do not HAVE to continue a close friendship with them. You do need to be professional, but you can protect yourself by not sharing unnecessary information, or trying to elicit from that colleague the type of support you would truly like to get. Their interests ultimately will not always coincide with yours, or yours with theirs.

I had a friend at work who repeatedly used confidential information I gave her, to obtain financial gain at my expense. I was horrified; she was oblivious. I know that she firmly believed she operated with the best of intentions, although I also believe that her actions were ill-crafted and ill-planned. However, I do not continue a friendship with her now, because I no longer wish to put myself at risk with her. She would never deliberately harm me, but harmed me nonetheless. We all have examples of how friends at work – and others in our lives – might have failed our expectations. I recommend to you the movie Rashomon (based on work of writer Ryūnosuke Akutagawa) which details a single, brutal event as perceived through four sets of eyes (a woman, her husband, a brigand and a woodcutter). I found this literature helpful in understanding how perceptions might differ profoundly despite what seem like indisputable and unassailable “facts.”

Finally, inevitably, there will be “Elaine” days. When I lost my job many years ago in that political paroxysm, it was at times tremendously difficult to maintain good humor. It felt much easier to be bitter and depressed. On the worst days, when I would hear of colleagues who had landed great jobs, I would call a very dear friend and announce, “this is Elaine…did you hear about so-and-so?” You may remember a Seinfeld episode in which a friend of Elaine’s became engaged, much to Elaine’s distress – she firmly believed she was prettier, smarter, more destined to get married, so how could that other woman have landed the groom? Hence, on those dark jealous days, I was Elaine in my heart.

You may also lose other friends as you transition, not because they or you have done anything wrong, but simply because we each change. Or simply don’t have time any more. Somebody you loved to hang out with every day and discuss the minutiae of banking law may not be as interested in spending time talking with you about the not-for-profit you are now working for.

Old friends. As you move through career transition – whether from unpaid to paid, paid to paid or paid to unpaid! – you should explore your network of old friends. I mean, those you grew up with; attended high school, college and law school with; Jennie from camp; “the gang” from the lost summer of ’69; fellow political junkies from that local campaign in ’76 (um, who was that?); the moms of the kids your kid went to pre-school with…and so on. It is very easy today to locate people – just google the name, or use intelius.com or try LinkedIn. Be casual when you reach out, but start re-connecting. Do be careful, of course, about reactivating old romances (enough said). You are beginning to extend your network. As you reach out, you will find that these old friends too have gone through many changes, many challenges. While we wish all well, it can help you feel less negative when you hear that others have faced similar mountains. At the least, you will gain a broader view of yourself, and gain a sense of the richness of your life outside of work.

New friends. I guarantee you will make new friends as you move into a new career. That is one of the highlights. As you move, whether pursuing an interest you’ve held but never previously explored or starting to work with new colleagues on a matter which excites you, you will exude enthusiasm and interest. You will be operating in the present, not in a “woulda, coulda, shoulda” world. As people see you in a new light, you will be refreshed. You will feel appreciated. You’ll start to feel “worthy” again. As you move into new arenas, be open to the very wide range of individuals you will meet and interact with. It may not be the person you gravitate to when you first walk into the room – it may be the quiet one standing near the window. While transition and change can be terrifying, it also allows you to be yourself in a new way and, thus, follow new paths.

April 29, 2009

You Are Definitely Not Redundant!

Submitted by Ronald W. Fox, Esq.

A few months ago, I read an on-line article from a London newspaper that Baker & McKenzie cut six New York associates in an office of 140 lawyers as part of a range of cost-cutting measures introduced in response to market conditions. The article used the English term saying the firm had announced “redundancies,” a definition for which is “having lost your job because the employer no longer needs you.”

Law Shucks reports that since January 1, 2008, there have been 10,659 layoffs by major law firms, 4316 lawyers and 6343 staff.

Somehow being “redundant” seems to say it with more of a kick in the pants than simply being laid off.

Imagine becoming redundant?

You went to a law school that’s hard to get into and did so well in your interviews during the beginning of your second year that you got a summer position at one of these firms. While there in the summer, you worked hard (or not) and were fortunate enough to get an offer to join the firm upon graduation.

You have been there for a number of years and you are now “redundant”?

My concern is that you might believe it in spite of the fact that you were likely not on the committee that made the decision, did not know whether your position could have been saved if others in the firm took a cut, were not given an option of another position in the firm and even though (for some of you) you know that the negative performance review was a pretext for the layoff. In addition, you probably don’t have an associates’ union that could have presented the case for your retention.

Having advised and provided career planning for lawyers for 25 years, I can safely say that the worst effect of being laid off is beginning to believe the “redundant” label and deciding that no one needs you.

Rest assured, you have options and you ARE needed!!

Over the years, the primary area of practice of the plurality of my clients has been commercial litigation in a large law firm. Most have changed firms at least once with the assistance of a recruiter. Some describe the process as “rearranging the deck chairs on the Titanic.”

While I have NO training as a therapist, I cannot overstate how significant a role in my efforts to provide advice and support for both dissatisfied lawyers and those in transition is the need to help my clients rebuild a sense of self-confidence and self-worth that most have lost.

I often remind clients about the role that Noah Wyle played on the long-running TV show, ER - Dr. John Carter. When he began, he was an insecure medical student. At the end of his medical training, in his residency, he is a capable, competent, confident physician.

The opposite occurs in the case of lawyers as they work they way through law school. Capable men and women who did well in college, wrote creatively, were active socially, started businesses and traveled, entered law school feeling good about themselves. The law schools then failed to teach them what they need to know to practice law and failed to teach them how to plan their career. At the same time, through the on-campus placement system, law students were often funneled to large firms to do work that for most was not what they envisioned for themselves as a career.

At the point when they are unhappy and dissatisfied and want to leave, they feel trapped because they are not aware of their options. For those who have no choice because they are told they are “redundant,” there is more of a sense of urgency and more reason to be frustrated and angry because they do not know how to make a transition. Few know their options and even those aware of some do not know a process for exploring and researching them.

BigLaw is only one segment of the legal profession and a fairly small one when you look at the demographics of the legal profession; i.e., the vast majority of law firms, approximately two-thirds, have less than 6 lawyers (half of all lawyers in private practice are solos) and there are a host of reasons why lawyers would want to work for (or be a partner) in such a firm.

If you take control of your career, you can find satisfaction in the practice of law. The key is being aware of one of the four fundamental values of the legal profession – a lawyer should be committed to taking a position consistent with his or her professional goals and personal values. You first need to decide which of your many realistic options you prefer the most.

Do you know about what is happening during the economic downturn in the world of SmallLaw? Is the situation better? Worse? Ignore SmallLaw at your peril!

I know about SmallLaw because for the last thirty-eight (38) years, I have been involved with them. I have worked for them, started them and worked with them. I have worked with firms that do commercial work, firms that represent individuals in personal plight issues, and public and private public interest law firms and non-profits.

As for supply and demand, much has been written over the last three decades about the urgent need of millions of members of the public for legal services.

Another principle to keep in mind is that few openings are advertised or known to executive search firms, especially in SmallLaw; i.e., you will not see them in writing in a newspaper or on the internet.

After you decide what you want to do, you will need to learn how to market and promote yourself. Deborah Arron, the late deceased author of What Can You Do With a Law Degree, had a way of describing this. She said that professionals do not apply for openings. Openings are created for professionals.

In addition, many of my clients never wanted to be employees. They wanted to be their own boss and be in control of their lives. They are entrepreneurial. They would never contact recruiters or need to. Who would a recruiter send your resume to if you are planning to open your own office? In fact, who needs a resume if you are going to be a solo practitioner?

Know that you are competent and that you are needed. There are satisfying positions in the legal community for you. All you have to do is take control over your career and go after them.

If you want to read more about career planning for lawyers go to my website and my blog. I invite you, of course, to email me or call at (781) 639-2322 to further discuss anything in this article or to find out more about the services I provide.

April 6, 2009

New Directions Program at Pace University

Submitted by Amy Gewirtz
Director, Pace Law School New Directions Program
Member, NYSBA Committee for Lawyers in Transition

New Directions 2009: Practical Skills for Returning to Law Practice
Session 2 to be held in New York City

Open House Invitation:
April 28, 2009 and May 21, 2009
Noon - 2:00 p.m.

Pace University Midtown Center
551 Fifth Avenue (French Building – 45th St., near Grand Central Terminal), Room 811
New York, NY

The New Directions program will be offered July 13, 2009 - December 18, 2009.

For information about the innovative and unique program to facilitate attorneys’ return to the legal marketplace, attend the one of the upcoming Open Houses. New Directions graduates will describe their experiences. Food and beverages will be provided. Please RSVP to agewirtz@law.pace.edu by April 21, 2009 for the April 28th Open House and May 14, 2009 for the May 21st Open House.

For more information, please visit www.law.pace.edu/newdirections or contact Amy Gewirtz at (914) 422-4606 or agewirtz@law.pace.edu.

Upcoming PLI Seminar

Submitted by Denise Gibbon

PLI (Practicing Law Institute) is having a course entitled “Attorneys in Transition 2009: Options and Opportunities in Today’s Economy” on Wednesday, April 8 from 9 a.m. to 12:30. The price is $25 and the opportunity to earn 3.50 units. It is being done in person at their facility in Manhattan and as a webcast.

For further information: http://www.pli.edu/product/seminar_detail.asp?id=55199

March 27, 2009

Pro Bono Programs for Attorneys

Submitted by Amy Gewirtz
Director, Pace Law School New Directions Program
Member, NYSBA Committee for Lawyers in Transition

It is heartening to see that in these challenging times for attorneys, some government and judicial, among other, organizations, are responding by offering programs for attorneys who have been laid off, or furloughed by their employers. Notable among these are the New York City Law Department and the New York State Unified Court System. Both entities have created programs in which attorneys can work, on a pro bono basis, while they are either looking for paid positions or until they return to their employer.

Please visit the following websites to learn more about these programs:

New York City Law Department

http://www.nyc.gov/html/law/downloads/pdf/NYLJ_031309.pdf

A new program offered by the New York City Law Department offers litigation and labor associates who recently have been laid off or are on the verge of losing their jobs the chance to gain courtroom experience while continuing their job search.

New York State Unified Court System

http://nylj.com/nylawyer/news/09/03/032609f.html

Administrators of New York courts are rolling out a new program today to enlist attorneys, many of whom may be laid off or on reduced work schedules due to the sour economy, to provide legal advice and expertise to pro se litigants.

Importance of Pro Bono Work

http://www.nytimes.com/2009/03/14/your-money/14shortcuts.html?_r=1&scp=1&sq=pro%20bono%20&st=cse

This article from The New York Times emphasizes both the importance of doing pro bono work (not just for lawyers) and the importance of doing your research on the organization for which you're interviewing for a pro bono position.

March 23, 2009

Podcasts to Contemplate

Submitted by Deb Volberg Pagnotta
Deb Volberg Pagnotta, an AV-rated lawyer, is President of Interfacet, Inc., which trains employers and employees on various employment issues, and provides career transition resources to employees, past, present and future.
Contact info: 914.997.8888 or info@interfacet.com

The bad news keeps coming. “White & Case's Black Monday: 200 Associates and 200 Staffers Axed,” blares the New York Lawyer on March 9, 2009. The 2000+ lawyer firm is laying off 200 associates and 200 administrative staff; and last November they had laid off 70 associates. In fact, since January 1, 2009, over 3000 lawyers in the U.S. have been laid off. So what do you do if you’ve been laid off?

One of the things you should be doing, as you transition into your new world and career, is bringing yourself up to date technologically. It is a brave new world out here, for those of you who have been slogging away in law firms. You may already be adept at Word, or billing software, or Westlaw, but now is the time to explore what else is happening in the techie world that can be of use to you moving forward (or even just sitting still). A simple yet elegant new technology is podcasts (from iPOD broadCAST):

An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player. Although many podcasts are played in a regular computer, the original idea was to listen on a portable device; hence, the "pod" name from "iPod." Although podcasts are mostly verbal, they may contain music, images and video.

I listen to three podcast “series” in particular:

• I’ve been trying to learn Mandarin for the last 8 years, not very successfully. However, Chinesepod (www.chinesepod.com) is a fantastic site as a model for eLearning (the fancy name for digitalized, computer-based learning). Each podcast is about 8 to 15 minutes long. The “newbie” and “beginner” podcasts give a brief conversation or a few words in Chinese, with banter between the “podcasters” Ken and Jennie. I listen to these podcasts over and over and over when I’m driving. It is very soothing, and the only place I can repeat several hundred times the Chinese phrase “Wo xiang he idianr pijiu” (“I would like to drink some beer.”).

• I also listen to “Wait Wait, Don’t Tell Me,” a weekly political humor show from National Public Radio (http://www.npr.org/programs/waitwait), with some great guests like Leonard Nimoy (yes, Mr. Spock!). I listen to this in order to laugh. These days, whatever makes you laugh, you should do it often. Watch funny movies, read funny books, spend time with friends who help you laugh. Being out of work is depressing, and humor will help you through it.

• Finally, I also recommend www.zencast.org, from which you can download remarkable presentations by various Buddhist teachers. Most recently, one of the presenters told a wonderful story about his experience as a Western monk living in a monastery in Asia. As the monastery was being upgraded, the head monk requested the monks to move a vast pile of dirt from one location to another. They did so willingly, albeit in miserable heat and, being Buddhists, unable even to swat at the thousands of mosquitos who joined the party. Once the pile was moved, the assistant to the chief monk directed the monks to move the pile to another location altogether. They did so, enduring the heat and insects yet again. The chief monk returned from his trip, and promptly told the monks to move the pile back to his original target location. The presenter, deeply unhappy with this situation, stuck to his task, but protesting internally every miserable and back-breaking step of the way. While not vocalizing his anger, his body language must have reflected some distress. Finally, another, much more seasoned monk came over to him, and gently pointed out “you know, shoveling is easy, but thinking about it is hard.” This concept struck me as particularly useful for lawyers in transition. In my own, involuntary transition in 1995, I was deeply angry about the political events which had transpired leaving me jobless, and that anger stayed for quite some time. The seasoned monk’s message resonates with me: it is the thinking about the pain of loss and separation and uncontrollable events which is truly difficult and hurtful. Let go of the endless re-looping about what you “coulda, woulda, shoulda” done differently. Instead, focus on here and now, your present. That way, you can more easily begin to look at what your present options are. Concentrate today on the immediate tasks you should undertake to help you move forward.

One final note: for those who’ve been laid-off, I recently found this excellent article: http://www.jobs.state.ak.us/TAA/survive.htm

In the meantime, post your favorite podcasts. I’m always looking for new ones.

March 2, 2009

Law Blogs Busy Keeping Up with Layoff News

Buffalo Law Journal

By Caroline Bala Brancatella

Some are referring to it as “Black Thursday,” others as “The Valentine’s Day Massacre.”

On Thursday, Feb. 12, an estimated 1,000 people in the legal industry lost their jobs when several major law firms announced layoffs of both staff and attorneys, adding to months of job cuts at firms that once seemed invincible.

Word of such losses came on the heels of the local news that Buffalo-based Hodgson Russ LLP issued layoffs for the first time in its 192-year history, letting go of five attorneys and eight staff members. Nixon Peabody LLP, a national law firm that maintains offices in Buffalo and Rochester, also announced it was laying off 36 people, including 20 attorneys. Neither firm specified which of its offices were affected by the layoffs.

Legal gossip blogs are infatuated with alerting readers to news of lawyer layoffs, declining partner profits, salary freezes and delayed start dates for new associates, as well as severance-package details.

Associates in the first few years of practice are the attorneys most likely to read blogs that report little else but job losses, and they are also the firm lawyers most susceptible to such layoffs. Paranoia often results.

But does the national reporting portray an accurate economic picture of the situation facing “regional” law firms such as those in Western New York?

Saturation Coverage

There are now entire Web sites dedicated to cataloging and analyzing the epidemic of law-firm layoffs.

Vault.com, an online provider of employment information in a variety of sectors, including law, now maintains a page entitled the “Layoff Tracker.” Its layoff outlines across all businesses include the name of the company, its location, the number of employees dismissed and the percentage of the company’s total workforce let go.

For information specific to legal job losses, masochists can visit AmericanLawyer.com’s “Layoff List,” which keeps a catalog of major firms that have implemented layoffs, and provides links to news coverage with details of those losses. For those who want details and visuals, Lawshucks.com, a legal tabloid, provides charts and graphs that analyze and crunch the numbers so that associates know that their firm is laying off a lot more people than other firms are.

These sites and the better-known blogs that report on legal culture primarily focus on large New York City law firms, with frequent reporting too about the goings-on of Washington, D.C., Los Angeles, and Chicago offices. And rightfully so, as those cities’ law offices are epicenters of national and global legal activity.

Nonetheless, such coastally centered coverage leaves large segments of law practice throughout the United States undiscussed and unanalyzed. Legal blog reporting, particularly related to the economic outlook of law firms, may not be helpful or relevant to attorneys working in more regionalized markets, and the firms there that rely on a client base very different from a global financial center like New York.

Credit-Crunch Spinoff

Many of the recent financial woes of large law firms stem from the “credit crisis” that has been driving the downturn of the economy for the past year and a half. This is because a great deal of recent corporate practice in the financial centers has focused on asset-backed securities, credit-swap derivatives and the byzantine — and in some cases questionable — financial transactions that surrounded them. Entire practice groups based on such financial tools have vanished.

The good news is that the end of the era of securitization as we know it does not affect regional legal practices such as those in Western New York quite as drastically. For the most part, Buffalo-area law firms never engaged in such transactional work. Local firms do have diverse and active corporate practices, but they are based on more traditional forms of business — real estate, contracts, etc. — than the largely theoretical finance that larger firms have engaged in during recent years. While an economic down turn usually leads to an uptick in litigation work, it simply has not been enough to make up for the losses.

Since the practices and revenue related to such financial footwork dried up in megafirms over the past 24 months, layoffs are the quickest and most effective way to lessen financial blows, simply because personnel costs are the most significant expense for law firms.

Jim Cotterman, a principal at the national legal consulting firm Altman Weil, lays it out: “The cost structure of a law firm is 78 percent labor, 8 percent facility and technology and 14 percent other. The facility and technology costs are largely tied to leases and contracts that will not be easily broken … Let’s face it, law firms are labor-intensive. That is where the money goes, and that is where the savings are.”

Local Outlook

Is the blogs’ sense of hysteria warranted in areas outside the financial centers? Are more layoffs on the way in the Western New York legal community?

Possibly. According to Cotterman, how each legal market fares in a rocky economy mirrors how that geographic area is weathering the downturn. For this reason, Western New York’s legal community may, for the moment, be in a better overall position than many other places.

The area’s economy has been in decline for decades, and the local legal field has adjusted to the shifting needs of clients. There is a theory that individuals and families who have always struggled financially fare better in times of economic woe because they already know how to weather a storm and make adjustments. The same may be true of a place like Buffalo, where residents are in the habit of adjusting to bad financial news.

Juxtapose Buffalo to Charlotte, N.C., which in recent years has been referred to as “Wall Street South” because of the number of financial institutions that have set up shop in the area. The Carolinas have been seen as a haven for Buffalo refugees in search of better weather and better financial opportunities.

Many Charlotte law offices have not merely laid off lawyers, but closed all together. Additionally, the real estate market in the Carolinas has been as hard hit as anywhere in the nation. Although there are signs that it is starting to slow along with the rest of the nation (home sales were down 17 percent in January compared to last year), Buffalo’s real estate market remains one of just 18 in the country where home prices increased last year.

Big Overhead = Bigger Risk

Another factor that may contribute to law-firm financial troubles in the bigger markets is that the larger the law firm, the more debt it is likely to carry. While the larger local firms may carry some debt, it is likely not significant as at larger firms, and therefore not as dire a problem as it could be in this tight credit market.

“Overall, 23 percent of law firms are debt-free,” Cotterman says. “About 30 percent of law firms with 20 or fewer lawyers and about 8 percent of law firms with over 150 lawyers will be debt-free.”

The no-frills approach of many local firms also helps keep the “people costs” that eat up so much of a firm’s budget at bay. The New York firms entice lawyers with starting salaries of $165,000, performance bonuses, clerkship bonuses, laptops, PDAs and smartphones, dinners, parties and all the trappings of prestige. Local firms tend not to engage in such antics, a money-saving decision that is serving them well now.

But when it comes down to it, the economy everywhere is rough, and Western New York is experiencing a new round of economic hits. Local law firms will likely feel some of that, but may be able to avoid slashing and burning their workforces. In the end, each firm needs to look at its situation and, above all, address the needs of those who pay the bills — the clients.

“Law firms need to stay close to their clients, appreciate their clients’ challenges, and assist them as much as possible,” says Cotterman. “Not raising rates or raising rates much more modestly can help. Work with the clients to find more efficient and effective ways to provide the services — hopefully such that the firm and the client can make progress.”