I saw that the Dewey & LeBoeuf law firm is folding. That’s huge news and the latest indication of just how farkakte the economics of the legal business are. But I had forgotten who D&L’s most recent high profile client was. Here’s Steve Dilbeck of the L.A. Times:
News has come from back east that the law firm of Dewey & LeBoeuf is filing for bankruptcy. Besides the little detail that this is the largest law firm to go under in U.S. history, there is this one other notable fact: The law firm going bankrupt is the same law firm that handled Frank McCourt’s bankruptcy of the Dodgers … Hey, I know a guy flush with $1 billion who might be able to give Dewey a loan. You could argue he even owes them.
Sadly, we can’t pin this on McCourt. Rather, we can pin it on a ridiculous compensation system that has law firm partners promising themselves insane draws despite the fact that revenues won’t support it anymore because business clients aren’t as dumb as to simply rubber stamp every legal bill that comes in to the accounting office like they did back in the 80s.
Mamas, don’t let your babies grow up to be corporate lawyers …