Reflections on Current Choices for Legal Career Paths
PRACTICING LAW IS NOT WITHOUT ITS CHALLENGES. Whether you practice at a big firm or small firm, as a solo practitioner or inhouse counsel, you may feel that the grass is greener on the other side. I have been on all sides of that beautiful green pasture since I began my career in 1996 as a real estate lawyer at a medium-sized regional law firm in Chicago. In 1998, I moved to Los Angeles and took a position in the Corporate Finance Department of Morrison & Foerster LLP. Five years later, I decided to start my own firm. I was a solo practitioner for about six months until a real estate lawyer friend from law school joined me as a partner and we simultaneously added an associate from Gibson, Dunn & Crutcher LLP. My biggest client at the time, an Idealab company, had engaged me as their outsourced General Counsel, and I was going to their offices in Pasadena three to four days a week.
Our firm did not have a centralized office—each lawyer found his or her own office space—and used independent contractors rather than salaried employees. The savings created by this vast reduction in overhead compared with traditional law firms were passed along to the clients in the form of lower hourly rates. At the same time, our firm’s partners consistently pocketed about 90 percent of their books of business.
By 2010, the firm had grown to nine attorneys. However, that growth came to a halt over the next two years. Not seeing a path to further expansion, my real estate partner decided to move his practice to a bigger firm, and we were forced to shed several of our associates in the process. Finally, my remaining corporate finance partner left the firm on December 31, 2015, leaving me and the same associate who joined us thirteen years ago. I had come full circle and had to determine what was next for this corporate lawyer in his mid-40s.
I definitely understand the allure of a big firm: sophisticated work and big bucks, if one is willing to bill 2,500 hours per year and go to work at a corporate office every day, and one has the ability to develop a book of business. At the same time, it is necessary to have at least a $1M book to become an equity partner, and job security is dependent on others managing the firm well. The recent partner layoffs at Reed Smith LLP and the dissolutions of Dickstein Shapiro, Dewey & LeBoeuf LLP, Bingham McCutchen, Heenan Blaikie LLP, Heller Ehrman LLP, Thelen LLP, and Howrey LLP have blindsided many big firm lawyers and staff, causing them to question what happened to the security of a big law firm job. Also, I don’t know a lot of happy big firm lawyers. The demands of the job take a toll and undermine the quality of life, including time with family.
I had come full circle and had to determine what was next for this corporate lawyer in his mid-40s.
Solo practice certainly has its advantages: you are the master of your destiny and there are no office politics. However, it is a lonely existence, and you don’t have partners to kick around new ideas, backstop your thinking on interesting legal questions, cover your clients if you get sick or go on vacation, or push you to continue developing yourself as a lawyer and business developer.
The in-house counsel route seems alluring: fewer working hours, a bird’s eye view into how a business is run, and working with a team of people that are driving towards a common goal (maximization of profits). In-house counsel positions, though, don’t pay as well as private practice, the opportunities for advancement are generally limited, and lawyers are often not part of the core management team.
In short, the poor quality of life at big law firms, the isolation of a solo practitioner, and the limited opportunities for an in-house attorney are the primary reasons why I initially left Morrison & Foerster LLP and founded my own firm thirteen years ago. I was also very inspired by the prospect of innovating a new legal business model, being the creator of my own career, and having the support of partners who would share the ride.
As I reflect on the past 13 years, I realize how empowered and satisfied I have been. I have had the good fortune to choose my clients, what I wear, when I go into the office, when I come home, how much billable work I want, what type of work I want to do, and who I want as partners. I haven’t had to manage a lot of overhead and staff, which has minimized my time spent on tedious firm administration. I have had partners who helped me develop myself as a lawyer, marketer, and business strategist.
Although the recent shrinkage of my firm indicates that small firm practice is not without its risks, if you are confident in the ability to develop a book of business that supports your lifestyle, the opportunities for a small-firm lawyer abound. I could have chosen to build my firm back up by recruiting new partners with a similar vision to mine, or I could have joined one of the many successful, boutique transactional firms looking for synergies with new partners. Several of the firms with which I met earlier in 2016 offered me a position as a partner. In the end, I decided to join a boutique corporate law firm called Baer & Troff, LLP, because it is aligned with my values and offers me the best opportunity to take my practice to the next level. As I reflect on where I have been and where I want to go, I am genuinely excited to explore with other attorneys and clients how to build a better mousetrap that maximizes value for clients and fulfills me and my partners.