Optimism Low for Hiring in Corporate Legal Departments; Greater Reliance on Outside Counsel Expected
(Newtown Square, PA, December 13, 2001) -- The American Corporate Counsel Association (ACCA) and Altman Weil, Inc. surveyed the chief legal officers (CLOs) in attendance at ACCA’s 2001 Annual Meeting to capture their thinking on a number of issues and concerns. Results reveal significant changes over the past year: the use of outside counsel will increase dramatically (despite concerns about performance), while optimism about in-house hiring is significantly down. Additionally, responses indicated concern about conflicts of interest issues, a topic that has risen to ACCA’s advocacy agenda for 2002.
The survey data is based on 40 completed surveys in 2001 and 77 completed surveys in 2000. The respondent pool was not necessarily consistent year to year.
Staffing Issues
The economy pre- and post-September 11 has taken a toll on the levels of optimism regarding the hiring of in-house counsel. The number of those planning to add to their departments dropped significantly from 2000 to 2001. In 2000, 47 percent of respondents planned to hire additional lawyers. This year, only 18 percent of respondents plan additional hiring.
Hiring Outside Counsel
To keep up with practice demands, most respondents (86 percent) will increase their use of outside counsel. This figure is up significantly from the 2000 survey, when only 35 percent of respondents planned to increase their use of outside counsel.
Lack of Responsiveness
Despite increasing reliance on outside counsel, once again respondents indicated dissatisfaction with their representation. A full 62 percent affirmed that they have fired or were considering firing one of their law firms this year, a figure consistent with last year’s data. Again, lack of responsiveness was indicated as the reason most respondents were eager to cut ties with their outside counsel.
Law Firm Branding
5 percent of respondents reported that law firm branding definitely influenced their selection of outside counsel in 2001, and another 49 percent said they were somewhat influenced. However 25 percent stated they pay no attention to branding efforts.
Conflicts
A new section was added to the 2001 survey to address an issue on the agenda for the in-house bar: that of outside counsel conflict of interest policies and waiver requests. The CLOs surveyed this year reinforced the view that there is confusion and frustration in navigating the issue.
Fewer than half the respondents (49 percent) indicated that they were aware of their outside counsel conflicts policies. When asked about their level of concern about law firm conflicts of interest, respondents were split: 23 percent are very concerned; 26 percent are somewhat concerned; and 44 percent responded that their level of concern depended upon the significance of the matter or case. Only 2 percent responded that they were not concerned at all.
ACCA has made available a detailed memo outlining the considerations that in-house counsel and outside counsel alike should take into account in determining when a waiver is appropriate and the kinds of considerations (and relative bargaining status) that affect the determination of whether to agree to a particular request. “ACCA’s Corporate Counsel Conflicts Primer” is available to ACCA members only at www.acca.com/advocacy/conflicts/primer.html.
ACCA / Altman Weil
As the in-house bar associationSM, the American Corporate Counsel Association (ACCA) is the largest national bar association comprised solely of attorneys who practice in the legal departments of corporations and other private sector organizations. ACCA promotes the common interests of its members, contributes to their continuing education, seeks to improve understanding of the role of in-house attorneys, and encourages advancements in standards of corporate legal practice. Since its founding in 1982, ACCA has grown to over 13,000 members representing more than 6000 corporations, with 43 local chapters and 12 committees serving the membership.
Founded in 1970, Altman Weil has maintained a leadership position in serving legal organizations and the profession. The firm maintains East Coast, Mid-West and West Coast offices. It is the only legal consulting firm to be named repeatedly to the Consultants’ News list of the top 100 consulting firms. Altman Weil is also known for the many legal economics surveys it regularly conducts and publishes, including the Survey of Law Firm Economics and the Law Department Compensation Benchmarking Survey.
Full survey results are available online at www.acca.com/Surveys/CLO2001 or www.altmanweil.com/news.cfm. Email membership@acca.com for more information on ACCA membership (limited to in-house counsel) or join online (www.acca.com/MemberCentral/becomemember/.
Contact:
Daniel J. DiLucchio
Altman Weil, Inc.
610.886.2000
djdilucchio@altmanweil.com
Deneen Stambone
ACCA
202.293.4103, x 319
stambone@acca.com
