Jerry Kowalski, co-founder of legal consultant Kowalski & Associates, predicts hiring of summer associates for 2009 will decrease by 35 percent from last year. This means young lawyers hoping for entry level positions at elite firms could wind up being disappointed, according to an article by Reuters.
This could prove to be a problem in a market that already will give recent graduates the lower hand. The recent financial crisis has meant many law firms are saying goodbye to top clients, while a few big lawyers are garnering big paychecks throughout the turmoil.
Top bankruptcy attorneys, high-powered defense lawyers and regulatory law experts are big winners in the financial meltdown, while deal lawyers who enjoyed robust business in recent years are seeing a marked downturn.
Lawyers who represent shareholders in big class-actions could also do well, but only if they prevail against banks, lenders and others they blame for causing staggering investor losses. Most shareholder attorneys work on a contingency basis, meaning they do not collect anything unless their clients win damages at trial or negotiate a financial settlement.
"Everybody is going to be affected," Fred Krebs, president of the Association of Corporate Counsel, an organization of in-house legal departments at major companies, said in the article. "To the extent there have been these meltdowns, there is going to be litigation."
The disappearance of three banks-Bear Stearns & Co, Lehman Brothers Holdings Inc. and Merrill Lynch & Co Inc., which has agreed to merge with Bank of America Corp-is expected to curb business for law practices long accustomed to lucrative fees from advising Wall Street.
San Francisco-based law firm Heller Ehrman LLP recently shut its doors amid the malaise, and others such as Cadwalader Wickersham & Taft LLP of New York and Chicago-based Sonnenschein Nath & Rosenthal LLP have laid off attorneys.


