Signs of Recovery Shown by Strong Financial Results
Some of L.A.’s biggest law firms revealed that there was an increase in their profits last year compared to 2009 and 2008. Analysts claim that this is a strong indication that the legal industry may be on the path to recovery.
In a further sign that the firms are bouncing back from the recession, according to the Business Journal, almost a dozen reported improved profits than they had in previous years.
The robust financial results which came from law firms in Los Angeles and other places across the nation have surprised some analysts in the industry.
A Newport Beach-based legal consultant, Peter Zeughauser, said that it appears law firms may have finally opened a new chapter. He said, “I was expecting a good year, but not this strong. I think it’s over. It certainly will be in 2011, if not already.”
Nevertheless, the rate of recovery has not been level, so far, and appears to favor those firms that have strong litigation departments.
Gibson Dunn & Crutcher LLP and Quinn Emanuel Urquhart & Sullivan, which have two of the most successful litigation departments in Los Angeles, enjoyed record years in revenue and profits per partner.
In 2010, the profits per partner at the Quinn Emanuel, which exclusively focuses on business litigations, increased by 16% translating to a huge $3.6 million and its overall revenue increased by almost a third to $551 million.
Quinn Emanuel in 2007 became the first, and still only, firm in L.A. to reach $3 million in profits per partner.