Citi Midyear Report

More Bad News for Biglaw: Waning Confidence of Managing Partners Spells Trouble Ahead

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What is the future outlook for Biglaw? The Magic 8 Ball is not optimistic.

Last month, we wrote about a less-than-cheery report from Citi Private Bank’s Law Firm Group, the largest lender to U.S. law firms. The bottom line of that report for law firms: “With weak demand growth and the continuation of expense growth, it is likely that expenses will continue to grow at a faster pace than revenue, squeezing margins and making it tricky to achieve even low single-digit profit growth.”

As we mentioned in Morning Docket, there’s a new report out from our friends at Citi, and it also sounds pessimistic notes. It concerns the confidence levels of law firm managing partners.

What are the powers-that-be in Biglaw worried about right now? Let’s find out….

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In Praise of Partners’ Prudence: Why the Lack of Spring Bonuses May Have Been a Good Thing

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The fable of the ant and the grasshopper may have lessons for the world of large law firms.

As regular readers of Above the Law well know, most major law firms — with a few notable exceptions — did not pay spring or mid-year bonuses in 2012. Our associate readers generally viewed this news with disappointment, while our partner readers had less of a problem with it.

But perhaps even associates should have been supportive of their firms’ decisions not to pay spring bonuses. Storm clouds are gathering over the law firm world. So says a recent report by Biglaw’s biggest bankers, over at Citigroup….

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Morning Docket: 08.17.12

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A Shirvell Photoshopportunity?

* “I don’t think I should have to pay anything back, because I wasn’t part of the management that drove the firm into the ground.” Dewey know when it’s time to stop complaining, pay up, shut up, and move on? [DealBook / New York Times]

* Good news, everyone! According to the Citi Midyear Report, based on the first half of 2012, Biglaw firms may have trouble matching last year’s single-digit profit growth. You thought the worst was over? How embarrassing for you. [Am Law Daily]

* Apparently Andrew Shirvell didn’t do a very good job questioning himself on the stand, because the former Michigan AAG now has to shell out $4.5M in damages for defaming Chris Armstrong. [Detroit Free Press]

* Six of one, half a dozen of the other: Barry Bonds’s lawyers filed a reply brief in their appeal of his obstruction conviction, arguing that his statements were truthful but nonresponsive, as opposed to being misleading. [AP]

* “We’re crazy about sex in the United States. I call it ‘sexophrenia.’” The Millionaire Madam’s attorney had a nutty yesterday after a judge refused to dismiss a prostitution charge against his client. [New York Daily News]

* The opposite of a fluffer? Los Angeles officials seeking to enforce the city’s new adult film condom law are beginning a search for medical professionals to inspect porn shoots for compliance. [Los Angeles Times]

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