More Lawyers Form Their Own Firms, Despite the Financial Sacrifice
Evidence is mounting that more lawyers are striking out on their own, even if it means lower pay and higher risk.
Martindale-Hubbell listings are one indication of the trend. In the last 11 months, the number of new law firms it tracked rose 2.7 percent, the American Lawyer reports. In the year before, the publication saw a much smaller increase in new law firms of less than half of 1 percent.
Legal consultant Edward Poll of Venice, Calif., provides another bit of evidence. He told the American Lawyer that, in the last year, he has seen triple the usual number of inquiries from lawyers thinking about going out on their own.
The publication spoke to lawyers who are part of the trend. Omair Farooqui was an intellectual property associate at Manatt, Phelps & Phillips when he was laid off last June. Now he handles trademark licensing and patent prosecution at Ellahie & Farooqui in San Jose. “Now I have marketing and administrative responsibilities, and the pay is about a third of what I made before,” he told the American Lawyer.
Frederick Jekel and Paul Doolittle have also taken a financial hit. They left plaintiffs law firm Motley Rice in September, and used personal savings along with bank loans to finance nearly $200,000 in annual costs for the new firm, Jekel-Doolittle, the story says.
