BY JODI SOKOLOWSKI
Buffalo Law Journal

In the 1800s, a lawyer would hang a shingle and handle generally simple matters that a client would bring in the door. Fast forward 200 years, and law firms have dozens of lawyers who have expertise in specific practice areas that have emerged over time.

Handling dozens of areas of law under one roof can become unwieldy for firms to manage, so law firms have constantly restructured to better organize themselves. By aligning their practice groups across multiple offices instead of just organizing lawyers by location, large U.S. firms are now becoming more efficient, to the benefit of both their staff and clients.

"Geography is irrelevant, and expertise is paramount," said David McNamara, managing partner of Buffalo-based Phillips Lytle LLP, which also has offices in Jamestown, Fredonia, Rochester, Albany, New York City and Garden City.

Gradual restructuring

The trend to set up multi-location practice clusters has been gradual.

"It's happening industry-wide with national and international firms, and Buffalo firms that have multiple offices are moving with the market trend," McNamara said.

Phillips Lytle executed its restructure in November when it formed five firmwide practice groups, in corporate law; litigation; banking and finance services; family wealth planning; and land, environment and energy.

When Gary Schober became president of Hodgson Russ LLP in 2005, the firm shifted from having two general divisions, business and litigation, into five practice areas - employment, benefits and immigration; tax; and real estate and finance groups joined the two traditional areas.

"The two divisions were too large for the vice presidents to effectively manage their respective areas," he said. "We felt we had too much middle management."

Each firm employs practice chairs - Hodgson Russ calls theirs PALs, or practice-area leaders - who are responsible for their area's performance.

At Nixon Peabody LLP, a New York City-based international firm with a Buffalo office, encourages its practice-group leaders to create a team with the "best talent" from any of its groups and offices.

"It's almost like a Rubik's Cube," said Vivian Quinn, deputy practice group leader of its products liability group. "Regardless of where the matter is, we try our best to put the right assets and resources on it."

Reaching out to an FDA expert in Washington, D.C., for a Buffalo case, or the Boston office calling the office here on bioscience matters, for example, is common.

Hurwitz & Fine PC now has nine teams, in business litigation, insurance coverage, business and health law, economic development, tort and insurance defense, transportation negligence, municipal law, estate planning and administration, commercial finance and real estate.

"Thirty years ago, we didn't have environment law or employment law with gender discrimination. There will be new areas of law, and the important thing is to remain flexible as you go forward," said Hurwitz & Fine CEO Bob Fine.

Getting to know you

Firms with multiple offices find that the shift forces lawyers to get to know their counterparts at other locations.

"They're interacting with each other more frequently now and building better relationships," said Phillips Lytle's McNamara.

Hodgson Russ' annual soiree helps lawyers learn more about each other in a relaxed atmosphere. A Buffalo attorney may be more likely to remember a New York City attorney's expertise from their informal chat rather than searching over profiles online.

"If lawyers are fully integrated, they know each other and know what they're capable of doing," Schober said.

Technological advances of teleconferencing makes it easy for attorneys to work in a "virtual office," cutting costs dramatically.

"It's unquestionably changed the dynamics of the practice. You're in constant contact not only with clients but colleagues and court," said Tom Liptak, a partner with Kenney Shelton Liptak Nowak LLP, co-chair of the American Bar Association's Law Practice Management and Economics Committee.

Keeping everyone happy

The benefit of organizing practice groups firm wide is a win-win for all involved, firms say. If a case originates elsewhere but utilizes a lawyer in Buffalo, where the hourly rates are lower than in most metro areas, clients get a reduced rate for the same level of service.

"Clients are obviously looking to be as cost-effective as they possibly can when it comes to legal bills," Liptak said.

And when law firms can maintain multiple locations or satellite offices cost-effectively, they are able to reach and retain more clients.

McNamara noted that clients may have to be introduced to attorneys they've never worked with in the past.

"People are becoming accustomed to dealing with professionals remotely, and they're more receptive to this model," he said. "We're getting really positive feedback."