In addition, we will be sworn in to practice before the Virginia Supreme Court in Richmond on November 3rd.
Now if I can just finish up that dissertation...

The chart on the top shows the number of applicants law schools admitted (who actually enrolled) from 2001 through 2009. The chart on the bottom shows total law related employment--attorney and non-attorney--from 2001 through 2009. [Note that the charts are not on the same scale; and the labor chart is not limited to lawyers.]Law schools are enticing this increasing numbers of students into the legal world (and financial servitude) in large part by misrepresenting employment expectations. Things have gotten so bad, the ABA is now being called on to force law schools to be fully transparent in their employment statistics in order to maintain their ABA accreditation. I think this is a much needed step.
While legal employment has fallen dramatically since 2007 (with a further decline in 2010), law schools, after remaining flat in 2008, increased by 5% the number of students admitted (and enrolled) in 2009. This increase was greater than the percentage increase in applications to law school. (The 2010 admissions numbers are not yet available.)
Law schools thus responded to the worst recession in the legal market in at least two decades by letting in more law students.
Do U.S. law schools need to be more transparent with their employment data?
Yes. At least that seems to be the growing consensus among everyone in the world — outside of law school deans — who routinely trot out a litany of reasons why providing such data would be burdensome, inconvenient, impossible, etc.
The rationale behind the sentiment: that schools are loathe to accurately reflect their job-placement rates, and that applicants are being sold false bills of goods...
At this point, schools have to disclose to the ABA what percentage of their graduates are employed nine months after graduation. But they don’t have to disclose whether students have part-time jobs, full-time jobs, jobs paid for by their law school or jobs that don’t require a J.D.
The Truth in Law School Education resolution could come sooner, said David Wolfe, the chairman of the ABA’s Young Lawyers Division. If it passed, schools would be required to disclose employment and cost information in order to keep their ABA accreditation. That information would be sent to applicants along with their letters of acceptance.
“It’s still in the works, but it will link the requirement to disclose employment and cost information with accreditation,” he said. “You would get that information with your letter of acceptance to a law school. We want people to go to law school with their eyes open.”...
“There’s a total lack of awareness out there. They hear these astronomical salaries which reflect just the top 3 percent of students who go to the top 10 law firms.”
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India’s legal outsourcing industry has grown in recent years from an experimental endeavor to a small but mainstream part of the global business of law. Cash-conscious Wall Street banks, mining giants, insurance firms and industrial conglomerates are hiring lawyers in India for document review, due diligence, contract management and more.
Now, to win new clients and take on more sophisticated work, legal outsourcing firms in India are actively recruiting experienced lawyers from the West. And U.S. and British lawyers — who might once have turned up their noses at the idea of moving to India or harbored an outright hostility to outsourcing legal work in principle — are re-evaluating the sector.
The number of legal outsourcing companies in India has mushroomed from 40 in 2005 to more than 140 at the end of 2009, according to Valuenotes, a consulting firm in Pune, India. Revenue at India’s legal outsourcing firms is expected to grow to $440 million this year, up 38 percent from 2008, and should surpass $1 billion by 2014, Valuenotes estimates.
“This is not a blip, this is a big historical movement,” said David B. Wilkins, director of Harvard Law School’s program on the legal profession. “There is an increasing pressure by clients to reduce costs and increase efficiency,” he added, and with companies already familiar with outsourcing tasks like information technology work to India, legal services is a natural next step.
So far, the number of Western lawyers moving to outsourcing companies could be called more of a trickle then a flood. But that may change, as more business flows out of traditional law firms and into India. Compensation for top managers at legal outsourcing firms is competitive with salaries at midsize law firms outside of major U.S. metro areas, executives in the industry say. Living costs are much lower in India, and often, there is the added allure of stock in the outsourcing company.
Right now, Pangea3 is “getting more résumés from United States lawyers than we know what to do with,” said Greg McPolin, managing director of the company’s litigation services group, who divides his time between India and New York. ...
Many legal outsourcing firms have offices around the world to interact with clients, but keep the majority of their employees in India; some also have a stable of lawyers in the Philippines. Thanks to India’s low wages and costs and a big pool of young, English-speaking lawyers, outsourcing firms charge between one-third and one-tenth what a Western law firm bills per hour. ... Even white-shoe law firms like Clifford Chance are embracing the concept. ...
Many corporations agree that outsourcing legal work, in some form or another, is here to stay.
“We will continue to go to big firms for the lawyers they have who are experts in subject matter, world-class thought leaders and the best litigators and regulatory lawyers around the world — and we will pay a lot of money for those lawyers,” said Janine Dascenzo, associate general counsel at G.E.
What G.E. does not need, though, is the “army of associates around them,” Ms. Dascenzo said. “You don’t need a $500-an-hour associate to do things like document review and basic due diligence,” she said.
The legal industry is certainly in the midst of some large changes in the way it has traditionally functioned. This being just one of many changes that are occurring as client’s willingness and ability to pay has weakened in the face of the recent economic climate. These changes are forcing law firms to become more efficient and cost-effective.
Long-term, this should lower the cost of legal services and promote greater competition among law firms. Overall this is likely to be a good thing for consumers of legal services and for the economy as a whole. Short-term, it is likely to make the market for legal jobs even more intense and painful – particularly for recent law school grads.
I wonder if some aspiring entrepreneur will take advantage of this situation and set-up outsourced legal services to make it easier for solo practitioners to get into business (although this is going to be much easier for experienced attorneys than those freshly out of law school). You might run into some ethical issues involving client confidentiality, but with some care and ingenuity, those issues could probably be overcome. With the increasing number of young, bright law graduates with non-ideal employment prospects, this might help create a climate allowing smaller, low-cost law firms to start chipping away at some business of the big law firms. In time, who knows? Maybe this kind of law firm model could do to law what the mini-mills did for steel?
(HT Paul Caron)
It’s grim reading. The observations are raw, bitter, and filled with despair. It is easier to avert our eyes and carry on with our pursuits. But please, take a few moments and force yourself to look at Third Tier Reality, Esq. Never, Exposing the Law School Scam, Jobless Juris Doctor, Temporary Attorney: The Sweatshop Edition, and linked sites. Read the posts and the comments. These sites are proliferating, with thousands of hits.All too true...
Look past the occasional vulgarity and disgusting pictures. Don’t dismiss the posters as whiners. To a person they accept responsibility for their poor decisions. But they make a strong case that something is deeply wrong with law schools.
Their complaint is that non-elite law schools are selling a fraudulent bill of goods. Law schools advertise deceptively high rates of employment and misleading income figures. Many graduates can’t get jobs. Many graduates end up as temp attorneys working for $15 to $20 dollars an hour on two week gigs, with no benefits. The luckier graduates land jobs in government or small firms for maybe $45,000, with limited prospects for improvement. A handful of lottery winners score big firm jobs.
And for the opportunity to enter a saturated legal market with long odds against them, the tens of thousands newly minted lawyers who graduate each year from non-elite schools will have paid around $150,000 in tuition and living expenses, and given up three years of income. Many leave law school with well over $100,000 in non-dischargeable debt, obligated to pay $1,000 a month for thirty years.
This dismal situation was not created by the current recession—which merely spread the pain up the chain into the lower reaches of elite schools. This has been going on for years.
Rarely, if ever, does the media turn its gaze towards law professors and their culpability in the epic scam of taking money from kids who don’t know any better and will never be able to pay off their debts. Most law professors don’t set tuition rates. They don’t determine the scope of loan forgiveness programs. They don’t mislead the world via U.S. News in order to pad employment stats... [M]ost of them aren’t even directly engaged in recruiting the next class of minnows that will keep the scam alive. All they do is teach, research, and take as much money as the market will offer.
But Washington University law professor Brian Tamanaha thinks that his professorial colleagues need to step up to the plate and start taking some responsibility for what is happening to law students — especially law students at low-ranked law schools. He says that professors can no longer turn a blind eye to the sadness of their students….
You’d think that legal scholars would at least want to be educated as to what the system is doing to the consumers of legal education.
We probably shouldn’t hold our breath waiting for law professors to suggest a course of action that will lead to a reduction in their salaries.
But if this system is going to change, pressure will have to come from all sides. With the ABA fiddling while law students burn, it is incumbent upon everybody else to demand that legal education become something other than a potentially ruinous financial decision.
Glenn Reynolds, another law prof at the University of Tennessee, writes in response to Tanamaha's article:
Not all law schools are that expensive, but even state schools are pricey now, and for out-of-staters may cost as much as private schools. If I were looking at law school today I absolutely wouldn’t go into debt except for an absolute top school — like Yale, Stanford, Harvard. And even then I’d be wary. The debt is too enormous, and the prospects too uncertain — not only because of the economy, but because of the uncertain future even of big law firms.
As a recent law grad currently preparing for the bar, I completely agree with Tamanaha, Mystal, and Reynolds on all counts. I've been disturbed ever since I started law school on the sad state of employment prospects for a majority of law grads relative to the astronomical tuition charged by most law schools. And that was before it became the worst time in history to graduate from law school.
I suppose I'm one of the lucky ones. I still have a year or so left to finish up my PhD and plan to pursue a career in economics, not following the traditional legal route. My future isn't as intricately bound up in the legal job market as many of my peers.
But for the sake of those who are considering going to law school, I make this request to the ABA and law professors around the country: Please help these students to become better informed and hold law schools to a greater standard of transparency. To far too great an extent, law schools are profiting off of the financial ruin of thousands of students each year. It's time for this to stop.
Wall Street Journal Law Blog, Were the ‘Good Old Days’ of BigLaw Better?, by Ashby Jones:
If anyone out there had any question that now — right now — is just the worst time in history to be graduating from law school, take a look at this article written by Mayer Brown lawyer Robert Helman in Chicago Magazine.
Now, you already knew that graduating from law school now was bad for this reason: it’s harder than ever to get jobs. But it’s also bad for this reason: even if you get a job, your life is bad, at least as compared to what it would have been had you started practice 45 years ago.
Helman’s been practicing law for a long, long time — he served as Mayer Brown’s chairman for 15 years — and his reflections on how things used to be are interesting.
A good question. I also wonder how many other law schools deserve to be in this category?How can you fix your mouth to criticize “trade schools” for setting up their students for financial ruin when you teach at Seattle School of Law? Seattle is ranked 77th by U.S. News, but the school charges $35K - plus for tuition. The cost per year exceeds $50,000 when you include books, board and other living expenses. But the school only sports a 67.9% “employed upon graduation” statistic.
So I wonder why Professor Pardo exempts Seattle from the list of schools who graduate more and more students who “can’t find meaningful employment.”
Third-year law students have been lamenting the unfortunate timing of their entry into the job market. Now they have some cold, hard numbers to quantify their woes.
The median number of offers by U.S. law firms for 2010 summer associate positions was seven, according to statistics released Tuesday by the National Association for Law Placement. That was down from 10 offers in 2008 and 15 offers in 2007.
In fact, the offer rate was the lowest NALP has reported since the organization began gathering offer statistics some 17 years ago.
Update: The NALP didn't start collecting statistics until 17 years ago. These stats are the lowest ever recorded by the organization.
(HT Economix)
Up from 29% in 2009. Combine that with expected salary statistics and this is a recipe for a lifelong financial disaster for most of these students. (Student loans are non-secured, non-dischargeable debt.)
Here is a recent look at the salaries law grads can expect:
Of the 22,305 law school graduates in NALP's sample (over half of all 2008 graduates), a remarkable 23% (5,130 '08 grads) reported an entry-level salary of $160,000. In contrast, 42% of entry level lawyers reported salaries in the $40,000 to $65,000 range. Once again, the central tendencies are a poor guide to the distribution as a whole: whereas the mean salary is a $92,000, the median salary was $72,000. Further, the two modes ($50,000 and $160,000) are separated by $110,000.
Put another way, if you decide to become a lawyer you are nearly twice as likely to make less than $65,000 as you are to make $160,000+.
While I would not argue that law schools should have a legal duty to warn students about this potential disaster, I think there is a very strong argument they have a moral duty to do so. It disturbs me that so few in legal academia seem to be making this effort.
Think long and hard if you’re considering going to law school and even harder before taking on too much in student loans.
Related: Here are five myths regarding the practice of law many students entering law school tend to believe.
Also, the New York Times had a recent article on the diminishing value of a law degree. Sarah Waldeck responds by saying there are only three reasons you should consider going to law school:
If none of these thee apply to you, I’d have to agree with Sarah. Don’t go.
(HT TaxProf Blog)
A sobering tale by Elie Mystal:
I graduated law school in 2003, owing Harvard University just under $150,000. At the time, I had no idea what starting my professional career $150K in the hole would do to my life. I figured I’d work hard, make money, and I’d pay my loans out of my general non-disposable income funds — kind of like my cable bill.
Seven years, two careers, numerous deferments and defaults, and one global economic meltdown later, I still owe a ton of money. Now, however, I pay it to various debt collection agencies and lawyers. When prospective landlords run a pro forma credit check on my application, they come back looking at me like I’ve been convicted of multiple war crimes. Every raise I’ll ever get will be eaten up by the collection agencies until sweet death allows me one everlasting and satisfying default. And, oh yeah, I don’t even want to practice law anymore — I quit my Biglaw job because, despite the debt, I really wanted to have a job that I enjoyed. So I essentially purchased a $150,000 disposable good. My time working in Biglaw was kind of like a very expensive vacation that I debt financed.
I mention all this because I am the cautionary tale prospective law students never want to think about. I mention all this because it is noble to crush false hope. I mention all this because there are way too many people poised to follow in my financially ruinous steps.
Unfortunately, Elie is not alone. According to the ABA Journal, nearly one-third of law students owe more than $120,00 in student loans by the time they graduate… and that number is continuing to climb. Not all of these students will be making a lifelong career in BigLaw which means many of them, like Elie, are most likely heading into financial disaster.
Consider this, if 29% of law students graduate with $120,000+ in debt and enter into a profession with median starting salaries of $72,000 (as of 2008), that means a whole lot of people are heading into a whole lot of trouble. (A lot of people take on the debt not knowing where they will end up in the salary distribution.) And that’s not even factoring in the terrible shape the legal sector is in now thanks to current economic conditions. What I find particularly troubling is that so few within the legal profession or legal academy seem to be taking steps to warn prospective law students about the financial realities they are likely to face.
Massive debt isn’t fun. Law school isn’t fun. And from what I hear from many practicing attorneys, working at a large law firm isn’t much fun either.
As I’ve said numerous times before, pick a decent-paying undergraduate major if you want to maximize your chances for a good financial return on your education. Taking on a small amount of debt used to enable your education toward a well-paying job and career satisfaction may not be a bad financial decision. But taking on six-figure debt with uncertain income prospects afterward can quickly turn into financial suicide.
See my previous post: Debt Is Slavery
Law Students Across the Country Try to Adapt in a Struggling Economy:
During normal times, law school is unlikely to be a good financial bet – particularly if you attend a non-elite school. Deciding to go in today’s economic climate increasingly appears to be more like committing financial suicide.For the first time in decades, the promise of a profitable law career for top students is uncertain, as law schools report significantly reduced hiring rates. ...
Law schools across the country are seeing a reduction in the number of firms participating in the recruitment process. Harvard reported a 20% reduction in the number of employers participating in recruitment, according to assistant dean for career services Mark Weber, while NYU, Georgetown and Northwestern reported on their Web sites that on-campus interviews are down by a third to a half when compared with recent years. Texas experienced a 45% decrease in on-campus interviews....
(HT Paul Caron)
Stare Decisis - "Maintain what has been decided and do not alter that which has been established"Why do so many law professors continue to use the Socratic method?
[T]he tradition-based argument for the Socratic method fails even on its own terms. It ignores the fact that virtually every academic discipline other than law has a long tradition of not using the Socratic method. That includes professors who teach courses on legal issues in political science, economics, history, and philosophy departments. Similarly, the Socratic method isn’t generally used by law professors in other countries, including other Anglophone common law jurisdictions such as Britain, Canada, and Australia. There is no reason to believe that either non-law classes in the US or legal education abroad suffers because they don’t inflict SM on their students. Nor is there any significant movement to adopt the Socratic method in any of these other academic departments and foreign law faculties. Relative to the traditions of most of the academic world, the widespread use of the Socratic method in American legal academia is an outlier.Orin Kerr thinks this overestimates the use of the Socratic Method by law school profs. Ilya Somin responds.
Starting today, we're enabling people everywhere to find and read full text legal opinions from U.S. federal and state district, appellate and supreme courts using Google Scholar. You can find these opinions by searching for cases (like Planned Parenthood v. Casey), or by topics (like desegregation) or other queries that you are interested in. For example, go to Google Scholar, click on the "Legal opinions and journals" radio button, and try the query separate but equal. Your search results will include links to cases familiar to many of us in the U.S. such as Plessy v. Ferguson and Brown v. Board of Education, which explore the acceptablity of "separate but equal" facilities for citizens at two different points in the history of the U.S. But your results will also include opinions from cases that you might be less familiar with, but which have played an important role.Ever since I started law school, I thought Google would be a powerful competitor to LexisNexis and Westlaw and was hoping they'd come up with a service like this that was free to the public. While Google is still lacking many of the features of these two search engines, this is still Google's first foray into a legal search engine and one that is destined to improve and be far easier to use than the competition. Not only that, but it won't cost you hundreds to thousands of dollars to do basic legal research. If I were Westlaw and LexisNexis, I would not be too pleased with this announcement.
We think this addition to Google Scholar will empower the average citizen by helping everyone learn more about the laws that govern us all. To understand how an opinion has influenced other decisions, you can explore citing and related cases using the Cited by and Related articles links on search result pages. As you read an opinion, you can follow citations to the opinions to which it refers. You can also see how individual cases have been quoted or discussed in other opinions and in articles from law journals. Browse these by clicking on the "How Cited" link next to the case title. See, for example, the frequent citations for Roe v. Wade, for Miranda v. Arizona (the source of the famous Miranda warning) or for Terry v. Ohio (a case which helped to establish acceptable grounds for an investigative stop by a police officer).
At this point, going to law school is like starting to smoke. It’s expensive, it’s probably going to kill you, and it’s a stupid life decision. But some people just don’t care.
At the very least, prospective law students should be forced to study for and take the LSAT outside. Mothers with small children should sneer and hold their nose when they pass these kids on the street.
(HT Paul Caron)
Not according to a new research paper entitled, “Mamas, Don’t Let Your Babies Grow Up to Be…Lawyers.”Read the paper here. [PDF]
The paper tries to measure the return on investment in a law school education, using three prototypical students (the “Also Ran,” the “Solid Performer” and the “Hot Prospect”; more details here). The results are somewhat disheartening, especially considering the surging interest in law school during this tough job market.
There is enough interest in Schlunk's paper, I wonder what the chances would be of getting this type of analysis published in a law review somewhere?To get a much better feel for how well law school really pays off, I'd love to put together an agent-based model or program a Monte Carlo Simulation to account for undergraduate major, law school ranking (top 14 vs. lower ranked schools), law school grades, tuition rates, etc. Either technique should yield a distribution of likely outcomes that would be much more informative than looking at averages. Another important piece of information to take into effect is expected number of hours worked. Is a legal job that pays $100,00/year but requires 60-70 hours of work per week really better compensated than an engineering job that pays $75,000/year but only requires 40-50 hours per week?
My expectation is that law school is only worthwhile if you have below average expected earnings with your undergraduate degree, go to a top-14 law school, and/or are in the top 10-20% of your class.
A report out of Colorado on Wednesday provides even further evidence to support what we all know to be true: it’s a terrifically bad time to be in law school.According to this story in Colorado Law Week, only about 35 percent of the University of Colorado School of Law’s class of 2009 had jobs at graduation, down from 55 percent the year before...
Oh how we wish this trend were limited to Denver, or Colorado, or even the western half of the U.S. But it’s not. It’s a trend that’s playing out again and again at just about every law school in the country.
[M]ight the law schools themselves be to blame, at least in part?
Yes, says Rick Bales, a law professor at the University of Northern Kentucky. Writing over at Prawfsblog, Bales says law schools have been “absolutely wretched” at responding to the shifting marketplace...
Ask any law firm hiring partner whether law schools are doing a good job of educating lawyers and you are likely to get an earful. Neither law firm clients nor cash-strapped government employers are willing or able to subsidize lawyer training the way they were in the past. Legal employers want to hire graduates who can take a deposition or draft a merger agreement now. But law schools are not delivering. The law schools that figure out how to do so – while still teaching the doctrine necessary for bar passage and the critical-thinking skills necessary for solving complex legal problems – will find themselves at a substantial competitive advantage over other law schools.
I will say coming out of engineering school, I felt well trained to hit the ground running when I started working for industry. I felt well prepared by my MBA program to immediately apply it to project management and leading teams. My PhD program has definitely helped me become a better teacher and researcher. What about law school? I feel much more prepared this year than before for legal work, but it is no where near the level of preparation I fell like I received in my other programs. I've lost track of how many of my lawyer friends complain that they don't use anything they learned in law school for their jobs. Do law schools serve primarily as a vehicle for rent seeking and barrier to entry to the legal profession than as a substantive educational experience? What does the preponderance of the evidence imply?
What puzzles me is why legal education is the way it is? I love many of my professors and most of my classmates. Most of them are highly intelligent, highly motivated people. There seems to be something systematic in the structure of legal education that creates many inefficiencies that no one seems to be rectifying. Do ABA regulations keep entrepreneurs form discovering ways to remedy these issues? Are law schools too concerned about US News rankings to take risks with innovating their programs? Are law schools so concerned about ranking their students for prospective employers that they make things needlessly obscure and difficult to force differentiation between students? Is there too much demand for legal education that suppliers feel little incentive to innovate?
Here's another interesting puzzle no one has been able to explain to me yet (without talking about some form of rent seeking): Why is there a third year of law school? Why not just make it two?