Big Law versus New Law - Research Paper Example

Student Name Lecturer’s Name Course Name and Number Date Submitted Big Law versus New Law The legal practice has been touted as one of the oldest practices in the world history. This profession is characterized by definite regulations, terms of practices and is also believed to be strict towards accepting any changes as compared to other fields such as the businesses world. Therefore, practitioners within the legal professions have remained ardent sticklers to the traditional practices and ways of managing their professional duties. The legal practice has however been experiencing significant changes in the recent years which have been deemed by scholars to be the signs of a great revolution in the offing (Adner). The prompt changes have led to the division of the law into two major categories which include the Big Law and the New Law. The rationale for this kind of categorization has been based on the manner of emerging practices, the use of modern technologies in the practices and also on the manner in which the law firms are structured. Debates have continued to emerge in regards to the differences and the suitability of both the Big Law and the New Law. Other scholars argue on towards supporting the emergence of the New Law while others castigate the move and believe in the posterity of the Big Law. The issues of contestations have been quite many, and this has made the debate range for a long time now. Despite the antagonism in this debate, there is a clear indication of the greater wind of revolution brought about by the New Law within the legal practice (Boccardi). A lot of changes have continued to emerge in the legal practice, and this has indicated on the possible take-over by the New Law practitioners. This study intends to examine the differences which exist between Big Law and the New Law and the various aspects which define these differences. Besides, the study seeks to examine the concept of whether the New Law would possibly beat and erode the Big Law and if such changes would have any benefit impact to the legal practice. Lastly, the study seeks to focus on the best move that needs to be taken by the practitioners, firms and even educators need to take so as to benefit from such changes if any within the legal practice. Differences emerging between the Big Law and the New Law The legal dispensation and structures have been divided into two broad categories and named as the Big Law and the New Law. The Big Law represents the largest and biggest law firm existing in the world. These firms usually have about 1000 partner and a large number of employees. Besides, they operate in large cities and also boast of a large capacity of staff. The Big Laws have been characterized by recruiting top professionals and also seeking for law graduates and training them into the job. The legal entities subject the staff too long working hours which are then remunerated by fairly high salary rates. It’s estimated that the current Big Laws offer about $160,000 a year as a starting salary to the new staff. This, therefore, makes them adorable and competitive job providers. The Big Law firms are also referred to as the traditional law firms since they represent the initial structures within the legal professions. They have however evolved steadily and embraced some of the changes within the immediate environment. However, scholars argue that the Big Laws are still stuck within the old traditions and are slowly receptive to changes within the corporate and even the legal practice. The slow reception to changes and dynamics within the modern society give rise to the New Law arrangements. The New Law has been defined as a legal model or arrangement within the legal practice which offers and creates different legal provisions as compared to the traditional systems which have been existing in the legal practice. These models offer a unique way of giving legal services to the clients are highly receptive to the changes in the modern society. The New Law is the brainchild of Eric Chin who coined the term in 2013 to represent the new arrangements and provisions of the legal service. One feature which has been used to define the New Law regards the availability of virtual space which it offers for the staff to operate and also the integration of technological approach to enable the legal activities to be performed without difficulty (Medlow). In the recent ears, several small legal firms have merged to embrace the new arrangement. Other scholars also argue that the economic depression of 2008 led to the limitation of resources and inability of the Big Law firms to pay and offer the legal services. This prompted other partners to split and start their small legal ventures to enable them to cut the legal costs involved. The New Law has been deemed as an epitome of change in the legal practice. It has embraced significant changes in the technological space, and this has defined the nature of activities which happen within these firms. Besides, it has given flexibility to the practitioners. A lot of changes have also been witnessed in the manner of remuneration. Therefore, studies have revealed a tectonic shift of legal practitioners towards embracing the New Law as compared to the shift towards the Big Law. The revolutionary nature created and brought about by the introduction of New Law has been an issue of debate with some scholars buttressing the emergence of New Law whiles others opposing the move. Besides, there has been a great concern on the number of graduating law students who have lacked the opportunity to get employment within the Big Law firms and have therefore opted for New Law as the solution (Burk). The flowing are outstanding differences between New Law and Big Law Flexibility in work arrangements Work flexibility is an integral component in any organization. Ideally, every staff requires work flexibility. This enables the employee to have a more liberal work schedule allowing for a proper mix of work life and the pursuit of personal life. The New Law has been deemed as the best model which offers flexibility in work schedule especially to the top legal professionals in the firm. It is not restrictive in the hours that every professional need to take as a yardstick for remuneration. Instead, it eve allows the staff to sit the whole day when there is no work and to work through the entire night to meet a deadline when work is available. On the other hand, the Big Law has been much focused on the hourly threshold among the staff. It requires that the professionals engage in about 2,000-hours per year so as to be remunerated (Chua). The aspect of flexibility in the workplace has led to several partners and professionals seeking to engage in the New Law as opposed to the traditional system. Every person has a need to have a flexible arrangement as part of life, and many tend to avoid rigid and schedule patterns of work arrangement. This feature has given the new Law high prominence and much desirability in the modern legal practice and further led to its adoption within the legal realms. Billing and pricing strategy The other differences between these two legal models regard the method used to bill or fix the pricing for the services performed. The Big Law is usually based on the hourly billing strategy. This implies that the price of the services offered is dependent on the hours took while performing the service. There is a heavy reliance on the hours taken as opposed to any other form of arrangements within this practice. Therefore, most of the clients who have frequented the use of services rendered by the Big Law are large corporate which are usually able to afford the hourly billing strategy used. On the other hand, the New Law has been deemed as highly beneficial since it divorces the use of the hourly billing system and instead embraces the Alternative Fee Arrangement Strategy. This method is usually best suited for clients since every client would wish to have an alternative arrangement to help negotiate on the legal fee charged. Most start startups in the modern legal practice have engaged in the use of the New Law strategy so as to reach and receive the service of individuals and even small clients which cannot afford the services of the Big Law providers. Alternatively, this strategy has been used to best attract a larger client base, and this has worked in many countries such as Australia. Active use of technology The active use of legal technology has become an integral part of the modern world with nearly every process and activity running on the technological portfolio. Businesses process has been automated, and so is the legal practice. One of the common perspective given toward those in the legal practice is the old characteristics of the profession stemming from the language used, and robes were worn, wig dressed by the attorneys among many other features. Scholars have also argued on the defensive nature of the legal practitioners towards accepting and accommodating changes in the modern society. One of the defining features of the New Law firms regards the formidable use of technology and the integration of technological features in the legal operations (Dezalay). The technology has enhanced efficiency in the legal practice, boosted the levels of transparency of the legal fees, automated systems in the offices, brought efficiency and timeliness in legal research and also enabled the attorneys to work even outside their offices. Many firms of the New Law have demonstrated the essence of technology even in the oldest profession of law which has always been deemed as less concerned with technology. The Big Law firms are however known for their traditional system of operations. The kind of technology used in such firm is referred to as sustaining technology which is only meant to make systems run. The traditional legal firms were less dependent on technology, and this has remained as defining a feature of the Big Law firm to date. Most of the systems and procedures within these firms are not automated. This explains why they depend on many hours worked by the employees to enable the meet the required goals and work efficiency. New Law and its possibility in overtaking the Big Law The traditional law or the Big Law has been the defining feature ion the legal system. Traditionally, every student aspired to finish their legal courses and join the bigger legal firms. This remained as the norm until sometimes back in 2008 when the Big Law firms engaged in massive layoffs so as to meet their financial obligation. The difficult economic times forced the law firms to cut down on the number and size of their staff, and this led to an awakening on the need to have start-up firms as an alternative. The wave of reasoning led o emergence of small legal firms which sought to have a different way of offering and creating legal services as opposed to the traditional norms in practice (Stein). Presently, there are several New Law firms across Australia and even beyond. There has been a great need even on the side of clients for better and more efficient services offered by these firms as opposed to the pitfall of the Big Law firms. Studies reveal that the New Law firms have attracted better legal professionals referred as to as super tempt lawyers. Most of these experienced practitioners have sought to have a more flexible working environment and a more efficient way of delivering legal services through the use of the New Law firms. The talented and skilled attorneys have participated in joining the New Law firms or even coming up with start-ups which embrace the modern trends. The clients have also given a lot of significant approaches on better arrangements regarding the legal fees. Traditionally, the fees charged for the legal activities depended on the hours charged. The Big Law firms center much on the hourly billing system, and this has led to many individuals and small businesses seeking legal services to opt for an alternative arrangement with the New Law firms (Galanter). The New Law firms are possibly going to beat the Big Law firms due to the integration of better technological practices in these firms. Technology has been proven as one of the better ways of fostering efficiency in organizations. The Big Law firms have been seen as less receptive to better changes. This has been one of the points of strengths for New Law firms which employ the latest technology to enable them to perform nearly all their activities. For example, there has been immense application of technology in the following areas of the New Law firms; Online research: research activities occupy a central position in the legal practice. Every lawyer needs to do intensive research so as to build a strong case or defense depending on the status of the case. Technology has been of great significance in the processes of performing research activities. The New Law firms are at the vantage point of benefiting from this beneficial feature of technology, and this has also improved the efficiency of the activities rendered in these legal firms. Document Automation: the use of technology is instrumental in achieving automated documentation of the information used in the legal practice. Usually, the lawyers are exposed to immense materials and documents. The use of technology aid in making the documentation process of various research information and data easy, possible and accurate. There has been a growing concern by the Big Law firms on how to achieve this efficiency despite their little technological advancement. Therefore, they have engaged in subjecting the staff to longer working hours so as to achieve their required levels of efficiency. On the other hand, the New Law firms have been benefiting from this advantage of technology over time (Selznick). Process Automation; the legal process entails a lot of communication and several activities. The use of technology has improved the efficiency, timelines, and effectiveness of the legal process undertaken in the modern times. For example, most of the New Law firms which inculcate the modern technological tools in their practice have been successful in automating their process. Several attorneys and even lawyers can manage their activities outside the office, and this has brought much relevance to their work. On the other hand, little management of processes and automation has been seen in the case of the Big Law firms (Garth). Computable Contracts and Finances; the introduction of computer services in the legal practice remains as a great milestone which has catapulted the New Law firms far from the Big Law entities. Usually, the legal practice is faced with a lot of contracting activities and financial transaction which require better execution and management respectively. The various contracts are usually executed on a manual basis especially in the Big Law firms. The case is, however, different in the modern New Law firms since the technology introduced has been instrumental in ensuring easy, timely and better execution of contracts between the firms and the clients. According to the merits mention above, there are high chances of the New Law taking over from the Big Law. The traditional knowledge among many law students was the only option of getting a job opportunity with a Big Law firm so as to be able to practice. However, there is much change of attitude and knowledge I regard to the practice of law even within the New Law firms. There are immense advantages and unique features which have been brought into this profession by the New Law that makes it be strategically positioned to take over from the Big Law. Besides, the existing wave among the clients on the efficient and the affordable legal service providers have made much impact on the acceptance of the New Law firms as compared to the traditional law firms (Ruhl). Possibility of a dramatic change into the legal profession One of the defining attributes that have been given to the legal profession by some scholars regards its defensive towards adopting new changes. There exist a great difference between this profession and other others such as the business practice which has consistently been shaped by the dynamisms within the operating environment. The legal practice has remained similar and grounded on its practices which have been in existence since its establishment. This can be seen in the manner in which the attorneys dress, the arrangement of the court, the dress codes and even in the language used during the court seasons. Ideally, this profession has remained stuck to the old practices (Gest). However, many changes have been observed since 2013. The wave of engaging in new and modern ways of managing the legal processes activities by the professionals has provided a new face to this profession. There have been a lot of changes witnessed in the integration of different ways of handling the legal procedures which are diverse from those employed by the traditional legal firms. Presently, the emergence of the New Law firms has brought a lot of significant improvement and changes in the manner in which the law firms offer services to the people (Kennedy). A lot of changes have been observed in the manner in which the fees are charged, the flexibility experienced within the work environment, the use of technology in perfuming the businesses and even on the manner in which the professionals handle the various cases. Besides, there has been a significant shift by several experienced and skilled legal professionals towards engaging in coming up with start-up legal firm away from the large Big Law entities. Therefore, there is a high chance of the legal practice experiencing a tectonic shift towards embracing the New Law system as opposed to the traditional system. The improvement into the legal practice that has been brought along by the emergence of the New Law firms has enlightened the public and even the legal practitioners of some of the defects of the traditional system (Kahn). For example, the need of technology in the legal system and the flexible work environment promoted by the New Law has been a major incentive for the legal practitioners. There is a great desire among the legal practitioners to have a more efficient service delivery system and also be able to attract a larger client base for purposes of profitability (Hayek). This explains why the is a great likelihood of several experienced practices to engage in starting or working with the New Law firms as compared to participating along with other partners in the Big Law systems. The increase in the number of the New Law firms is also a proper indication of the possibility of this system to take over and shift the practice from the traditional system. Possibility of a revolution in the legal practice The immense changes which have characterized the legal profession point out to a probable change which may cause a revolution in the manner of practice done in this field. There is a possibility of revolution and not evolution. Presently, evolution seems to have occurred, evolution usually denotes the initial introduction of a new process, subject or something which was not existing before. The concept of change had already been introduced, and therefore the only thing likely to sweep through this profession is a wind of evolution. The evolution is likely to be witnessed across some areas which define the manner and the process f legal practice taking place. The introduction of the New Law as a hybrid from the tradition Big Law is seen as the start of the great revolution likely to sweep the profession. The clients, as well as the practitioners, have become more awake and alert to the needs expected from this profession. Besides, the changes within this environment have led to a lot of shortcoming of the traditional old system of practicing the legal function (Johnson). The revolution likely to occur originated from the 2008 depression period when the large legal firms were unable to accommodate and pay for services rendered by a large number of employees. Many were laid off and others retrenched. Therefore, several legal practitioners such as the lawyers saw a need of coming up with legal start-ups as a fallback plan. Further, the idea was to offer alternative approaches which are different and diverse from those of the large traditional entities (Henning). This has success, and we currently have many firms which are operating under the auspices of New Law movement. The possible revolution would be aimed at solving some of the shortcomings of the traditional system. Many practitioners have opted to have the start-up and small legal firms which offer a unique way of offering legal services to the public. The revolution is likely to be felt within Australia and beyond, and this will have a great impact on the development and even existence of the Big Law entities. The clients would also prefer to receive services which meet their efficiency, financial and timeliness expectation and these are some of the defining attributes of the New Law firms (Hoff). The distinction between evolution and revolution in this field matters since it denotes the kind of activities which have so far occurred and those which are intended to occur. Little evolution has occurred in the legal practice since this field is rigid to changes and slow to accept any new formation or procedures. However, the existing evolution of the New Law idea has further been developed, and it will feature as a revolution in the coming years. There are many firms seeking to operate under the umbrella of New Law strategy, and this has equally boosted the spread and the new dispensation (Hart). Benefits of the changes The changes which are likely to come up due to the adoption of the New Law are likely to have a positive boost in the legal practice. The traditional system has been faced by several weaknesses which are only rectified and corrected by the introduced system of New Law. For example, the clients will have much receive due to the abolition of the hourly billing system. The hour-billing method has always been regarded as prohibitive. In fact, only large corporate and rich individuals have been able to afford this kind of billing systems (Schweighofer). The introduction of New Law would allow the alternative fee arrangement to help the clients benefit from a negotiated agreement. Besides, there will be a positive impact on the practitioners who have indicated the need for a flexible work arrangement. Presently, the stress levels among the legal practitioners such as lawyers have been seen as higher than the normal people within the population (Holmes). Most of them have been reported to have been suffering from depression, and this has caused most of them to seek for a flexible work arrangement. Further, most of them have opted for New Law firms so as to have the benefit of servicing personal life demands as well as work details. There is a great expectation in the efficiency within the legal practice due to the wave of revolution. For example, most of the traditional legal firms lacked the modern technological infrastructure to buttress and improve their activities. However, the New Law firms have taken a leading role on the need to adopt and integrate the modern technological features in the legal practice. The revolution in this field will, therefore, be successful in achieving automation of processes, documentation and enhance research activities for purposes of improving service deliveries. The New Law firms have so far adopted and integrated immense technological approach which helps the attorneys to automate a lot of their activities. The technology has equally made the world easier and allowed for work within the virtual space. The various legal practitioners who employ the use of technology have therefore been able to improve the efficiency and nature of their services delivered to the clients (Kritzer). The wave of change likely to occur within the legal profession by allowing job flexibility the is beneficial to the health of the legal practitioners. Many people have avoided the Big Law firms due to the longer working hours involved and the strict nature of the work which even limits the balance in somebody’s life. Despite the better remuneration received, there is a great negative effect on the life of a person. People tend to be stressed whenever they are compelled to work long hours and when they are subjected to strict deadlines which they must meet. In such circumstances, they tend to develop depression and ill health (Ribstein). This is true according to several research studies which have been conducted pitching the legal practitioners and other members of the public. Therefore, there will be a wave of benefits accruing out of the job flexibility which accompanies the New Law firms (Markoff0. There has been a contrasting view on the possible outcomes from both the New Law firms and the Big Law firms. In the Big Law entities, the lawyers always struggle so that they make a delivery of a near-perfect technical service. The long hours through which these lawyers work is oriented towards ensuring that the service offered are near perfect. However, the practitioners existing in the New Law firms tend to deliver fit-for-purpose services to the clients. This implies that these firms are much concerned on value delivery and efficiency in their work. The purpose of every service conducted by the legal firms is to provide an efficient and comprehensive outcome to the client. Therefore, the adoption of the new revolution has been seen to be much focused towards this subject as opposed to the traditional players. The acceptance and adoption of the New Law firms will, therefore, be much beneficial in improving the nature of services delivered to the client's ad will be much concerned on the strategies which fit the purpose of their existence (Medlow). Steps needed to ensure that the changes are beneficial One of the steps that need to be taken by firms and educators regards the introduction of the study of technology within the legal profession. Currently, the legal curriculum is devoid of technical subjects such as the study of technology and its benefits. A lot of concern has been given to other units which focus on law and little given to the technology. Suppose the expected revolution occurs within the legal profession, then many lawyers and other practitioners will be found with little knowledge to apply in operating the technological facilities. The other step regards the need for training on changes occurring in the immediate environment and some of the consequences of such changes. The best way to benefit from a change is usually to prepare for that change. The modern firms, relaters, and even educators need to engage in massive training so as to be able to understand the aspects of the expected changes and be able to receive the change when it finally comes (Reiser). Conclusion The legal practice has been one of the admirable and outstanding practices in the world. Several students go to school to be lawyers in the after years. This profession has however been witnessing rapid changes and development in the recent years. This paper focused on the categories of the legal firms known as the New Law firms and the Big Law firms. It focused on the adoption of New Law and the benefits which stem from this legal dispensation. Besides, it focused on the differences existing between New Law firms and the Big Law firms and better ways to manage the changes in the wake of the revolution in the legal practice. Works Cited Adner, Ron. "When are technologies disruptive? A demand‐based view of the emergence of competition." Strategic Management Journal 23.8 (2002): 667-688. Boccardi, Federico, et al. "Five disruptive technology directions for 5G." IEEE Communications Magazine 52.2 (2014): 74-80. Burk, Bernard A., and David McGowan. "Big but Brittle: Economic Perspectives on the Future of the Law Firm in the New Economy." (2010). Chua, Amy L. "Markets, democracy, and ethnicity: toward a new paradigm for law and development." The Yale Law Journal 108.1 (1998): 1-107. Cohen, Morris R. "The Place of Logic in the Law." Harvard Law Review 29.6 (1916): 622-639. Dezalay, Yves, and Bryant G. Garth. "The confrontation between the Big Five and Big Law: Turf battles and ethical debates as contests for professional credibility." Law & Social Inquiry 29.3 (2004): 615-638. Galanter, Marc, and Thomas Palay. Tournament of lawyers: The transformation of the big law firm. University of Chicago Press, 1994. Garth, Bryant. "From Civil Litigation to Private Justice: Legal Practice at War with the Profession and its Value." Brook. L. Rev. 59 (1993): 931. Gest, Ted. Crime & Politics: Big Government's Erratic Campaign for Law and Order. Oxford University Press on Demand, 2003. Hart, Herbert Lionel Adolphus, et al. The concept of law. Oxford University Press, 2012. Hayek, Friedrich August. Law, legislation and liberty: a new statement of the liberal principles of justice and political economy. Routledge, 2012. Henning, Joel F. "Federal Corporate Chartering for Big Business: An Idea Whose Time Has Come." DePaul L. Rev. 21 (1971): 915. Hoff, Karla, and Joseph E. Stiglitz. "After the big bang? Obstacles to the emergence of the rule of law in post-communist societies." The American Economic Review 94.3 (2004): 753-763. Holmes Jr, Oliver Wendell. The path of the law. The Floating Press, 2009. Johnson, David R., and David Post. "Law and borders: The rise of law in cyberspace." Stanford Law Review (1996): 1367-1402. Kahn‐Freund, Otto. "On uses and misuses of comparative law." The Modern Law Review 37.1 (1974): 1-27. Kennedy, David. "A new stream of international law scholarship." Wis. Int'l LJ 7 (1988): 1. Kritzer, Herbert M. "The professions are dead, long live the professions: Legal practice in a postprofessional world." Law & Society Review 33.3 (1999): 713-759. Markoff, John. "Armies of expensive lawyers replaced by cheaper software." (2011). Medlow, Sharon, Norm Kelk, and Ian Hickie. "Depression and the law: experiences of Australian barristers and solicitors." Sydney L. Rev. 33 (2011): 771. Reiser, Robert A., and John V. Dempsey, eds. Trends and issues in instructional design and technology. Boston, MA: Pearson, 2012. Ribstein, Larry E. "The death of big law." Wis. L. Rev. (2010): 749. Ruhl, John B. "The fitness of law: using complexity theory to describe the evolution of law and society and its practical meaning for democracy." (2009). Schweighofer, Erich. "The revolution in legal information retrieval or: The empire strikes back." Journal of Information, Law and Technology 1 (1999): 99-1. Selznick, Philip, Philippe Nonet, and Howard M. Vollmer. Law, society, and industrial justice. Russell Sage Foundation, 1969. Stein, Peter. "Legal Evolution the Story of an Idea." (1980). Read More