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Law Firm Management | MONDAY, MAY 9, 2016 | S3

PREDICTION
More cases are going to trial, he added.
ing analysts help develop fee strategies in

What practice area do you expect
Clifford Chance’s litigation group has response to client requests.
will be the most inancially challenged in 2016?
been driven by white-collar investigations, A couple percentage point variation “might
anti-money laundering and Foreign Corrupt be a difference between losing money on a
Practices Act work, Cohen said.
deal and making money,” Colihan said. “Know
Several law irms pointed to regulatory what your margins are and try to manage your
Litigation
practices also taking off this year.
percentage discounts around that.”
29%
While Brexit is causing uncertainty for Cohen said fee pressure “is not getting
some deals, Cohen said the irm has been any better” and is constant from certain cli-
Corporate
21%
busy advising U.S. and U.K. clients of the ents, especially inancial institutions due to

Bankruptcy/ 40%
ramiications of the possible U.K. exit from increased oversight and regulatory pressure.
Restucturing
the E.U.
Still several law irm leaders, such as those
Intelectual Colihan said he expected regulatory work from Kaye Scholer, Mintz Levin and Greenberg
Property
6%
to continue to be high, partly because the Traurig, said they were able to make minimal
Justice Department issued a pilot program rate increases in 2016.
Real Estate
2%
in April aimed at beneitting companies that Cohen said Clifford Chance was able to
self-report violations of the Foreign Corrupt raise its rates in 2016 by a couple percentage
Practices Act.
points, less so than previous years, in line
Other 2%
Meanwhile, demand for cyber security with the market.
compliance advice and litigation continues “You can deduce from that there’s more
to grow. “We have clients every day asking fee pressure than in past years,” he said. “It’s
0 5 10 15 20 25 30 35 40
what should I be doing, what preventative not a huge increase and we’re trying to be
measure should I be taking, or I have this sensitive to our clients, but you have to bal-
issue, how do I address it,” Mitchell said.
ance the fact that costs go up.”
Gretta Rusanow, head of advisory services
at Citi Private Bank’s Law Firm Group, said
Discounts and Rates
EARLY 2016 OBSERVATION: “Firm leaders have been surprised by law irm rates increased last year by nearly
the strength of litigation and restructuring and bankruptcy, the latter
What remains constant is client pressure 3 percent, which includes discounts. “Even
for discounts.
of which had been sluggish for years.”
with more modest demand growth, the
“I continue to expect on a regular basis industry still managed to push through rate
there will be fee pressure and signiicant fee increases,” she said.
pressure and we budget for it. We expect it,” Colihan said the irm experiences fee pres- transactions not being billed at all.
@
Solow said. “We try to work with clients as sure in the form of frozen rate discounts, vol- “The pressure has been for greater dis- |
Christine Simmons can be reached at csimmons@alm.
partners. “
ume discounts, busted deal discounts or irst
counts,” Colihan said, adding the irm’s pric-
com. Twitter: @chlsimmons