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WHAT WE'RE WATCHING

MONEY TALKS -  We know, discussing billing and collections with clients is unseemly, indecorous—just plan icky. But there is mounting evidence that a more personalized approach to the payment process may be a wiser course of action than simply farming the whole deal out to a collections department. In the latest Law.com Trendspotter column, we examine how the pandemic has laid bare the importance of transparency and communication in billing and collections. As the initial financial anxiety of the pandemic has given way to sky-high legal demand, which in turn has sparked a costly and ongoing legal industry talent war, firms that haven't been upfront with their clients about rates charged, time billed and payments expected have risked damaging longstanding relationships. Law firms and clients frequently tout their close, trusted relationships. So why should topics like billing and collections be taboo? I'm interested to hear from you: What are some best practices for law firm billing and collections that can help to avoid awkwardness and resentment on both sides? Let me know at [email protected].

HIRES LOWER - Guess it had to happen sometime. The legal industry could see a reversal of the frenetic hiring trends that dominated 2021, as demand for associate talent begins to level off, Law.com's Jessie Yount reports. The eye-popping signing bonuses that made headlines last year in the legal industry are being pulled back, as are creative arrangements such as remote positions, according to legal recruiters in the Bay Area. "Firms don't seem to be hiring at such a frantic pace," said Julieta Stubrin, a senior director at Whistler Partners. "Now they can take the time to be a little more thoughtful, versus the attitude of 'we need anyone with a heartbeat.'" But as M&A activity slows and headwinds abound, firms are taking their feet off the gas. As a result, according to Liz Soderberg, a director at Lateral Link, purely remote positions are fading. Some firms that hired remotely in cities such as Salt Lake City have since opened offices in those locations, suggesting that, in the long term, firms still seek physical proximity to their talent.

BLIND EYE TO IOLTA? - Wells Fargo was hit with a class action Wednesday in Nevada District Court on behalf of investors who contend that they lost more than $100 million in a Ponzi scheme. The suit, brought by Simons Hall Johnston and other attorneys, arises from an alleged investment scam which unraveled in March when Las Vegas attorney Matthew Wade Beasley was shot and apprehended by the FBI. The complaint alleges that Wells Fargo aided and abetted the scheme by ignoring suspicious activity involving an IOLTA account at the bank. Counsel have not yet appeared for the defendant. The case is 2:22-cv-00654, Pmm3, LLC et al v. Wells Fargo Bank. N.A. S tay up on the latest deals and litigation with the new Law.com Radar.  

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