When I practised law in Mississauga, Ont., our fees were cheap compared to the Toronto firms, and kind of expensive compared to firms in places like Guelph, Belleville and Kingston. I occasionally wondered whether my clients might prefer to deal with firms in smaller cities at lower rates. Then I would reassure myself that doing so would be terribly inconvenient for them and that they would rather pay more to deal with me.
Now I am not so sure.
My father told me about a dad who told his son to jump from a roof top, and that he would catch him. The son jumped. The dad stepped aside and let him fall. When the injured boy demanded an explanation, the dad replied, “I have just taught you a valuable lesson. Never trust anyone, not even your own father.”
As you may imagine, I had trust issues growing up, which is a bad thing. As it turns out, having a few trust issues may be helpful in the business world.
From time to time I hear stories about Big Law offering Big Money to attract first year lawyers to sign away their souls in Toronto, or U.S. firms opening the vaults and waving around signing bonuses to lure Canadian legal newbies south of the border.
While throwing money at junior folks can be a good thing, I think that a warning is in order. Since no one else appears to be issuing one, yet again it falls to me to cut through the bullshit, state the obvious, and protect the new generation of lawyers.
I will draw my inspiration from the love of my life, who, nurturing parent that she is, used to warn her young children about “Stranger Danger.” More specifically, she would say: “Don’t be stupid about it. Be sure that you see the candy BEFORE you get in the van.”
I will leave it to you intelligent young folks to search for meaning in my warning and being lawyers, Govern Yourselves Accordingly.
I had only been a lawyer for a few months when I had my first shareholders dispute to deal with.
My boss told me to take the position with opposing counsel that his client’s resignation from “all positions with the corporation” included his resignation as a minority shareholder. I told him that his argument was ridiculous. One cannot resign as a shareholder.
You may be familiar with the expression, “Culture Eats Strategy for Breakfast,” a quote from Peter Drucker. As the title of this post implies, I not only agree with that sentiment, but I believe that it is drastically understated.
In some law firms there is the ‘Go Big or Go Home’ faction (and by “Home” I mean to a firm where lawyers work reasonable hours and people care about each other and their physical and mental health).
For this faction, it is all about improving earnings and damn the lifestyle.
There is often another faction comprised of lawyers who want to make a decent living but who also want to have a happy life. In a firm where the ‘Go Big or Go Home” group are calling the shots, nobody cares what these lifestyle losers think, so I am also going to ignore them in this post.
When I started practicing law, I joined a firm which had one exceptionally large client and very many small clients.
The large client needed help with interesting transactions, sophisticated corporate reorganizations, financings with lots of zeros, and creative corporate structures. Large files with large billings.
The smaller clients brought simpler work such as incorporations, small business purchases, and simple shareholders agreements. Small files with small billings.
Those of us who hang out with lawyers know that there may be some wine involved, but more often, there will just be whining.
Lawyers complain about many and varied things, such as how hard they work, the stress, their demanding clients, their Associates, and their Partners. The list of gripes goes on and on. In my retirement, I have learned to tune most of them out. However, recently a rising crescendo of complaints from young lawyers about the scarcity of good mentoring has risen above the usual cacophony of complaints and careened into my consciousness.
Let’s cut to the chase: Law firms compensate lawyers for two things: (i) fees billed for their own work; and (ii) fees billed for work that they introduce to the firm which is done by someone else. (In theory there are some other things that matter also, but in practice you cannot get rich by doing any of them.)