Work-Life Balance in the Legal Profession: A Necessity Even in a Down Economy

Earlier in the week one of my favorite blogs – The Glass Hammer – posted a very interesting article on how so many attorneys have been willing to neglect their personal lives to avoid being let go. However, as the article explains it is important to give yourself some personal time so that you can be both mentally and physically ready for the demands of your job. You can find a snippet of their post below, but be sure to head over to The Glass Hammer for the full text, including a list of the top 10 family friendly law firms in the country.

Over the last year, in large law firms across the country, associates have lived in fear of losing their jobs, accepting and even seeking out longer hours at the office in the hope that if they can accumulate enough billable hours, their jobs will be spared. Unfortunately, such a practice is leading to growing dissatisfaction for all involved. Associates are worn out and resentful of their current predicament. Clients are becoming fed up with large legal bills which reflect the work of several attorneys billing a significant number of hours in order to produce a single piece of work product. Law firm partners are struggling to maintain and bring in business since clients are going in increasing numbers to smaller firms where the same legal work can be done for a lot less.

In this time of high unemployment and economic hardship, should we consider work-life balance a luxury, available only when economic times are good, and just be thankful we have jobs at all?

Although the answer from many quarters seems to be “yes”, others believe that sacrificing work-life balance is not the best strategy to surviving a tough economy. Lisa Gates, life balance coach and author of “Are You Ditching Work-Life Balance Because You’re Afraid of Losing Your Job?” explains that balancing work and personal life in a down economy is important, not just for your well-being outside of work, but to ensure you remain mentally and physically prepared to successfully carry out workplace goals and make sound decisions in your career.

Large law firms can learn from those employers which have already recognized the importance of work-life balance. According to Susan Fenton, author of “Firms Say Work-Life Balance Boosts Productivity”, companies such as Dutch mail company TNT, oil company BP, and US computer maker Sun Microsystems Inc. have found that work life imbalances lead to increased business costs. As a result of these findings, these companies have adopted more flexible working arrangements which they say motivate employees, resulting in increased productivity and efficiency.

Lawyer Could Face Jail for Voir Dire Question

From ABA Journal.com:

A federal magistrate has found patent lawyer John van Loben Sels in contempt of court and threatened him with a 48-hour jail sentence for a question he asked during voir dire.

Van Loben Sels asked potential jurors in a patent infringement suit whether they had "a problem with a company that puts its headquarters offshore on a Caribbean island in order to avoid paying U.S. taxes," the Recorder reports. He is a partner with Wang, Hartmann, Gibbs & Cauley of Mountain View, Calif.

U.S. Magistrate Judge Charles Everingham IV of Marshall, Texas, had prohibited Van Loben Sels and other lawyers for Beyond Innovation Technology Co., a defendant in a patent suit, from saying anything about the tax motivation for the Cayman Islands home of the plaintiff, O2 Micro.

Everingham said Van Loben Sels would not have to serve the sentence if he behaved for the rest of the case, according to the story. But he granted a mistrial and imposed other sanctions on Beyond Innovation Technology Co., known as BiTEK. It will have to foot the bill for new jury selection, will get half the voir dire time of its opponent and will get two peremptory challenges instead of four, according to the Recorder.

Van Loben Sels had defended his question, saying it was hypothetical and he didn't refer to O2 Micro by name.

The Impact of the Economic Downturn on the Legal Industry

One of my favorite blogs, TheGlassHammer.com, has posted a very interesting article by Heather Chapman on the impact of the poor economy on the legal industry. Below is a snippet from the article, so be sure to click here for the full version.

The financial market isn’t the only industry being affected by the recent downturn in the U.S. economy. Businesses all across the nation have seen a decline in customers. However, in the legal industry, the number of bankruptcy, litigation, regulatory compliance, white-collar defense, and divorce cases has risen as people and businesses try to either save themselves from collapse or cash in on someone else’s. With questions like “Should I keep investing my money?” to “What do I do about my health insurance plan?” lawyers are finding that business is booming.

Rjon Robins, attorney and founder of a lawyer coaching website, says that he is seeing more personal consumer bankruptcies. “The biggest reason is the social factor. When you see other people around you taking advantage of bankruptcy relief the social stigma is reduced which makes the decision easier for you to make. The same is true of commercial bankruptcies. Except that business owners tend to come to the decision a little faster with the help of accountants and vendors who prevent them from avoiding the reality of their predicament.”

He continued, “Litigation attorneys are seeing an uptick in new business. And we expect that trend to continue too, but not necessarily because the economy is causing people to have more reason for litigation. Rather every time we see a down-swing in the economy what seems to happen is that people who might otherwise have focused on the future instead of resorting to litigation start to try and tie-up loose ends.”

Thomas W. Kerner, attorney for Kerner & Betts in Williamsburg, North Carolina, agrees. He sees consumer debt collection and tax litigation rising, in addition to business-to-business (B2B) debt collection. “Especially among contractors and subcontractors who are not being paid because banks have pulled the funding on projects they’ve put months of work into; I would say 75-80% of it is directly or indirectly related to the building slowdown, which has been fueled by the collapse of the housing market and the tightening of lending practices which has caused a lot of projects to stop dead in their tracks.”

IRS Announces OPR Settlement

Earlier in the week, the IRS’s Office of Professional Responsibility (OPR) announced a settlement agreement with three attorneys in connection to a $31 million municipal bond issuance involving River Park Square in Spokane, Washington in 1998 handled by the former firm of Preston, Gates & Ellis LLP. However, the IRS and the attorneys both agreed that the settlement does not constitute any admission of wrongdoing. According to the IRS, the ORP is pleased to have reached this agreement because it demonstrates their commitment to ensuring bond lawyers comply with Circular 230 when involved in tax-exempt municipal bond issuances.