North Carolina: A Look at the Legal Community
North Carolina is known for its business-friendly atmosphere, healthy economy, diverse industries, and educated workforce. In the last two decades, the state has expanded to accommodate the shift to the digital economy by attracting high-tech companies and workers. Tech-savvy professionals are currently a hot commodity for law firms in North Carolina. With large businesses concentrated in banking, technology, and medicine, more than half of the largest law firms in North Carolina have an established presence around the globe . Firms such as Kilpatrick Townsend & Stockton LLP, McGuireWoods LLP, and Womble Bond Dickinson (US) LLP have expanded their global reach. According to data from the National Law Journal (NLJ) 2018 NLJ 500 Survey, on which this article is based, 1,194 lawyers work for the largest North Carolina law firms. Combined, these firms employ 1,897 lawyers. In addition, firms with 50 or more lawyers in North Carolina employ 538 partners and 630 associates. The legal industry in North Carolina consists of 61 large law firms, 277 small law firms, and 1,369 sole practitioners. The small law firm sector is made of firms with four or fewer lawyers.
Largest Law Firms by Headcount
The North Carolina State Bar lists approximately 27,000 active members of the Bar. More than 900 law firms in North Carolina employ two to nine attorneys; this compares with about the same number (885) of firms with ten to 49 attorneys. The largest firms practicing in North Carolina (and in the nation) continue to be global giants. Over 300 US law firms boast more than 100 attorneys, and 224 of these are among the top 500 in the US. Only a small number (68) include North Carolina offices.
Two of the largest firms in the US have offices in North Carolina: K&L Gates has 1,800 lawyers in 45 offices on five continents. The firm operates six offices in North Carolina: Charlotte, Greensboro, Research Triangle Park, Concord, Wilmington, and Winston-Salem. K&L Gates represents Fortune 100 and FTSE 100 companies in their domestic and international operations. Moore & Van Allen has an international, national, and local practice, serving clients on a range of issues. The firm has 600 lawyers in offices in the US and Europe. The firm’s Charlotte office boasts more than 180 lawyers and serves public, private, and financial services clients, representing industries such as energy, health care, bankruptcy, securities and real estate. The Charlotte office is largely noted for its intellectual property and litigation practice, and its corporate transactional practice, where it provides services such as public and private offerings, mergers and acquisitions, and joint ventures. One of the largest North Carolina firms, Womble Bond Dickinson, also has a large national presence, with more than 1,000 lawyers across offices in Virginia, Washington D.C., Delaware, Massachusetts and New York. Womble Bond Dickinson advises businesses of all kinds, assisting them in every stage of the business lifecycle, from formation and operation to exit.
Prominent Areas of Practice
The largest law firms in North Carolina, like those in other states, dabble in a wide range of practice areas. In the realm of domestic law, for example, we see a comprehensive approach to family law, including lawyers specializing in child custody and family financial settlements but they also include expert counsel on tax issues and bankruptcy for people going through divorce. They are equipped to deal with all manner of family law issues but nuanced enough to deal with very specific areas of such law.
Litigation tends to involve trial attorneys and appellate lawyers but large firms don’t start there. Instead, they build their litigation team from trial attorneys to appellate lawyers and everything in between. And they have specialists in everything from business disputes to complex personal injury matters, to title claims and property disputes. They serve individual and corporate clients alike in mediation, arbitration, and all types of litigation. Again, they are well-rounded and able to deal with the entirety of a legal dispute.
These large, high-performing firms offer all types of corporate and real estate counsel. Big construction and development projects with enormous financing considerations and liability risks get top-notch representation from these firms along with the ability to litigate property disputes when they arise. And these firms cover intellectual property counsel and legal issues that are unique to North Carolina such as franchising and many more specialized areas.
These large firms specialize in a multitude of practice areas. But they also invest heavily into a top legal IT systems that can consolidate the management of the documentation, billing, and other aspects of client caseloads, and put their entire firm’s infrastructure on the cloud.
The obvious question is how do North Carolina’s largest law firms align with law firm specialties of the largest firms in the country? The answer is that they know how to align their specialties with the legal demands and trends emerging throughout North Carolina.
Influence on the Legal Profession
The largest law firms in North Carolina present a unique landscape of opportunities for legal professionals at various career stages, from entry-level associates to seasoned partners, even well-informed administrative staff. In each of the top 10 largest firms, lawyers can immerse themselves in rich client work that exposes them to multiple industries and practice areas. For junior associates, this means hands-on experience with high-stakes matters likely to appear on a resume throughout one’s career. For mid to senior-level partners, it signifies a platform for influencing policy and possibly shaping public discourse in a particular area of law.
Administrative staff are impacted by their firms’ internal structure and the leadership of high-profile rainmakers. Some firms , such as Moore & Van Allen PLLC in Charlotte, operate a highly centralized business model that deliberately blurs the lines between attorneys in different offices. Others, such as Parker Poe Adams & Bernstein, incorporate a hub-and-spoke model designed to reinforce teams within the various offices while maintaining a stable foundation.
Information management professionals especially will find the largest firms offer a full spectrum of services. To be sure, they employ many data entry and scanning clerks. But for legal operations professionals, those firms may also propose opportunities for contract management or knowledge management professionals.
Impact on Community and Economy
The economic and social stalwarts of their communities, large law firms in North Carolina do more than simply provide legal representation. Through pro bono work, community service initiatives, and direct economic contributions, these firms help to shape the legal landscape and contribute to the wider regional economies. They bring jobs not only for attorneys but also ancillary staff, from paralegals to administrative professionals. Additionally, by representing high-profile corporations and influential individuals, these firms help other businesses grow and thrive as well. Firm-sponsored summer associate programs and internships provide a pathway into the law for hundreds of law students each year, significantly boosting the workforce of the state. For many law school graduates, working for a large firm is the pinnacle of their legal careers. In recent years, the World Bank has moved its International Center for Settlement of Investment Disputes from Washington DC to Charlotte, one of the largest financial hubs in the southeastern U.S. The increase in attendees at local law schools such as the Charlotte School of Law is a reflection of this attention. Until recently, law schools had a difficult time attracting students who wanted to practice law in the state. Now, closing the talent gap remains one of the major challenges for large law firms.
Looking Ahead: The Future of NC Law Firms
Many of the largest firms are actively enhancing their technology services. Williams Mullins confirmed the establishment of a new technology department and Ashley C. Yandle has been named Director of Technology and Innovation. And whilst technology plays such a major role in modern law firms, there are other important developments and trends we will be monitoring going into 2019.
Ethical Guidelines for Data Breaches It is critical that attorneys understand the ethical duties of protecting their client’s data, especially with the rise of cybercrime and hacks within the legal sector. The North Carolina State Bar has laid out all pertinent guidance for attorneys in this regulatory update. The State Bar’s Ethics Committee chair, Joseph A. Wolkin of Smith Moore Leatherwood, is quoted as saying, "Compliance with the relevant rules of professional conduct will assist members in reducing the chances that they will be victims of cybercrime." Ashley C. Yandle, Director of Technology and Innovation at Williams Mullins adds , "That’s something we are staying on top of as a firm and there’s definitely education around it offered by the North Carolina and South Carolina Bar Associations." Alternative Fee Arrangements and Alternative Business Structures Alternative Fee Arrangements (AFAs) are becoming more common in business law around the US, so what’s the situation in North Carolina? It seems to be an increasing trend across the larger firms. In the 2017 North Carolina Law Firms Survey, Parker Poe revealed that around a third of their measured revenue came from AFAs. Smith Moore Leatherwood has also implemented AFAs across its offices. Janet Rhodes, Managing Partner of the Winston-Salem office, commented, "We are always exploring new ways to enhance the way we deliver value to our clients – whether through AFAs, a reasonable number of billable hours or fixed fees for certain work." It’s an interesting trend with regards to where legal services could be headed in North Carolina, as four law firms – Nelson Mullins, Womble Bond Dickinson, Kilpatrick Townsend and Smith Anderson – pilot a new regulatory framework allowing Alternative Business Structures (ABS). Now in its second year, the scheme allows select US firms to have non-lawyer owners of their business, with the goal of developing innovative new methods of delivering legal services.