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Why Clients Fire Firms

BY Aric Press
October 30, 2012

In most legal markets, but especially the current one, law firms want to keep their clients. It's an obvious goal and one that, for the most part, they reach. But not always. The separations can be painful, costly on the margins, and, if the firm is paying attention, instructive. So why are firms losing important, blue-chip clients? Let us count the ways:

  • “They were doing a bad job: no results and a lot of invoices.”
  • “Poor service. Lots of delay. When challenged, they were completely up front and just said [they] don't have enough resources, which is pretty astonishing for an international law firm.”
  • “It has to do with quality and price. We paid thirty or forty thousand euros, more or less for nothing. So, they had to go.”
  • “The main client relationship [partner] left the firm. I find that often when partners leave, those firms neglect to contact clients to say we still want your business and we have signed a new relationship manager. They tend not to correspond with you. Yet the partner who leaves always contacts you from the new firm.”
  • “There was a severe lack of relationship between what the bills were and what the value delivered was.”

The Survey

The quotes come from a new report by Acritas, the UK-based market research firm. They are verbatim responses from aggrieved in-house lawyers who were explaining why they stopped using a law firm. Working from a call center in Newcastle, Acritas interviews a couple thousand general counsel in about 45 countries each year on their experiences with the law firms they've hired. From this research they compile a ranking of law firm brands and ask a variety of questions about the attitudes and practices of clients and their legal service providers. This year they asked about firing firms.

The answers, of course, were one-sided. And no doubt there were some prickly customers in the bunch. Nonetheless, they are worth heeding, for the firing phenomenon is no longer isolated: Thirty percent of the in-house counsel reported dropping at least one firm in the last year. The fired firms can't be regarded as trivial. I've read the list, and it's a litany of the rich and famous. Nor can the unhappy clients ' mainly big companies: Twenty percent reported revenues of more than $6 billion, and another 40% reported more than $1 billion.

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