The Great Divide

It's no shock that the views of corporate attorneys differ from those of their counterparts in private practice. But you may be astonished to learn just how much discord there appears to be between these two groups about the business of law.

More than two-thirds of corporate counsel responding to a new State of the Legal Industry Survey say law firms aren't doing enough to respond to the financial pressures on their business. Meanwhile, about three-quarters of the private-practice attorneys surveyed say their clients are too focused on reducing costs.

Calling the opinion gap between the two groups a "Grand Canyon?sized divide," the study, commissioned by LexisNexis, goes on to report that 69 percent of corporate counsel surveyed have shifted work in-house since the economic downturn began; more than half say they've reduced spending on outside counsel.

Private-practice attorneys, for their part, also have taken a number of steps in the wake of the recession: 41 percent say their firms have offered alternative fee arrangements, and 26 percent have reduced employee salaries. Even so, just 38 percent of corporate counsel believe law firms are being responsive about changing fees and costs during the recession.

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