The Future Of The Legal Profession and ADR Providers

Report
Frederic S. Ury
Ury & Moskow, LLC
Fairfield, Connecticut
 Change in every industry is
occurring faster than ever
before.
 Not just change but disruptive
change.
 Lawyers are not exempt.
.
 Legal and ADR services are not
going to disappear. They will be
delivered differently.
 Mail: Pony Express-email- text Music, news, books, consumer
products, and consumer services.
 Border’s Books and Blockbuster.
 Television, Cable and Net-flicks.
 1,123,000 law office jobs 2004.
 100,000 prospective students.
 54,000 fewer jobs since 2004.
 Law school applications are
down 50%
Globalization/regulation
Technology
Nature of clients
Demographics
Over one million lawyers in India are
willing to work for $25.00-50.00 per hour.
 Outsourcing overseas and insourcing in the
US.
 Ethics 20/20 changes concerning
supervision.
 We are a net exporter of legal services by
billions.

Bought by Thomson Reuters.
In 2011 opened a 400 seat office in
Texas.
 Outsourcing is returning to the US
because of a glut of newly minted
attorneys who would rather work for
$50,000 than not work at all.
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Australia --publicly traded law firms.
The UK --Legal Services Act, ABS, MultiDisciplinary Practices & passive non-lawyer
investment.
 Legal disciplinary practices may have up to
25% non-lawyer owners or managers.
 Borderless practice in Europe, Australia &
Canada.
 Ontario licenses and regulates paralegals.

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 Same model for over 200 years.
 Jacoby Meyers law suit.
 MDP in District of Columbia.
 Licensing Paralegals in the State of
Washington.
 Change is slowly happening.
 Ethics 20/20—the art of the possible.
 Nothing has impacted the law like
technology. 24/7 accessibility.
 Small firms can compete with large
firms for large transactions or
complex litigation.
 Law firms have the same law library
 Clients have the same access.
 E-law firms, + outsourcing + co-
sourcing =network of law firms.
 UPL and regulatory considerations.
 Cloud computing and confidentiality.
 Grads who cannot find work are
opening virtual law firms without
mentoring.
 Ethics 20/20 technology rules.
The internet is the primary source for
information. Webmd and legal sites.
 This generation has grown up using the
internet to research, study, shop,
socialize, and play.
 Music, newspapers, and books.
 Knowledge is available for free.
 These sites are owned by non-lawyers.

 Technology that is a disruptive
change.
 True access to justice will occur when
the ability of computers to search
combined with artificial intelligence
allows anyone to answer complex
legal problems quickly and easily.
55
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Combination of arbitration and mediation
Pre-select arbitrator and mediator
Start with mediation and if cannot agree go
into arbitration.
Some issues can be resolved and others sent
to arbitration.
Can be same for mediation and arbitration or
two different people/panel.
Start arbitration process.
After a portion of the hearing…could be
a summary of positions or more
testimony
 The parties meet with a mediator to
attempt to negotiate a resolution after
hearing part or all of each others case.


 Comprehensive arbitration
 Expedited process with limited
discovery.
 Fixed fee arbitration.
 Bracketed Arbitration: High/low
What are you going to be able to charge
for?
 What is going to be available for free?
 This new generation is used to getting
their intellectual property (books and
music) for free.
 Why not dispute resolution systems?
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1960’s
1975
1995
45% corporate, 55% individuals
53% corporate, 40% individuals
64% corporate, 29% individuals

Originally, this change meant higher income for
lawyers because corporations paid more.

But, corporations are increasingly inclined to drive
down the cost of legal services and lawyers have
priced themselves out of the market for middle
income clients.

Source, Prof. Thomas Morgan, GWU School of Law
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74%
8%
8%
3%
1%
1%
1%
5%
Private practice
Corporations
Private Industry
Judiciary
Legal Aid/Public defender
Education
Private association
Retired/Inactive
Information provided by Hinshaw & Clubertson LLP
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48%
15%
7%
6%
6%
4%
14%
Solo
2-5 Lawyers
6-10 Lawyers
11-20 Lawyers
21-50 Lawyers
51-100 Lawyers
101 plus Lawyers
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Clients expect law firms to reduce legal
expenses.
Is the billable hour going to replaced by
fixed fees, blended rates, or result oriented
billing?
Corporations and individual clients are not
paying for first year associate.
Looking for less expensive: ADR
But ADR is becoming as expensive as court.
More strapped litigants skip lawyers in
court. Wall Street Journal, July 22, 2010.
 In CT 85% of divorces have one selfrepresented party.
 10% of criminal cases in CT have private
counsel.
 We need a new business model.
 Opportunity for ADR providers.

 Overseas regulation changes.
 Non lawyer ownership in US
 Ethics 20/20 white papers on
Alternative Business structures.
 Pro bono models.
 Low bono model.
55 percent of lawyers are baby-boomers.
 They are approaching retirement age.
Can they afford to retire?
 Fewer lawyers are entering the
profession.
 How will fewer attorneys impact CLE
providers and bar associations?
 Ethics and regulations for an aging bar.

40
35
30
25
1980
1991
2000
20
15
10
5
0
25-34 35-44
45-54 55-64
65+
Rank by Surplus Ann. Jobs
Bar Passers Grads
1. New York
2100
9728
5. Massachusetts
715
2165
11. Connecticut
316
32. Rhode Island
38. Maine
Wages
7687
$56.57
2520
1450
$43.89
880
510
564
$43.89
102
209
184
107
$39.65
75
153
91
78
$29.70
41. New Hampshire 92
154
146
52
$30.84
48. Vermont
55
191
4
30.48
53,508
44,159
National
51
26,239
4771
Surplus
27,269
$44.22
2500
2000
1500
1000
500
0
25-35 36-45 46-55 56-65 66-75
76+
2500
2000
1500
2006
2011
1000
500
0
24-30 31-40 41-50 51-60 61-70 70+
1600
1400
1200
1000
2006
2011
800
600
400
200
0
25-34
35-44
45-54
55-64
65+
700
600
500
400
2007
2011
300
200
100
0
20-29 30-39 40-49 50-59 60-69 70-79 80+
3000
2500
2000
2006
2011
1500
1000
500
0
0-34
35-44 45-54 55-64 65-74
75+
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2001-10
1991-00
1981-90
1971-80 pre-1971
6000
5000
4000
2006
2011
3000
2000
1000
0
25-35 36-45 46-55 56-65 66-75
75+
2000
1800
1600
1400
1200
2007
2011
1000
800
600
400
200
0
25-34
35-44
45-54
55-64
65+
6000
5000
4000
3000
2000
1000
0
Under 30
41-50
Over 60
1800
1600
1400
1200
1000
800
600
400
200
0
25-29
30-39
49-49
50-59
60-69
70+
25-29
30-39
40-49 50-59 60-69
Age
70+
2500
2000
1500
1000
Members
500
0
25- 35- 45- 55- 65- 75- 85+
34 44 54 64 74 84
The End of Lawyers? by Richard Suskind
The Vanishing American Lawyer by
Professor Thomas Morgan
 Tomorrow’s Lawyers, by Richard
Suskind
 Essential Qualities of the Professional
Lawyer, Written by 19 authors. To be
published by the ABA in August 2013
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Frederic S. Ury
Ury & Moskow, LLC
883 Black Rock Turnpike
Fairfield, Connecticut 06825
Telephone: 1-203-610-6393
Fax: 1-203-610-6399
Email: [email protected]
Website: www.urymoskow.com

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