21 Feb 2013

California law firms buck struggling legal market

Leading law firms in California turned in significant profits during 2012, turning what had been an otherwise bad year for the legal sector on its head and suggesting the legal market may be recovering.

California: profits up at top firms

Although 2012 started well for many firms, the San Francisco Chronicle reports that momentum soon stalled and a tough summer ensued for most American firms.

Increasing profits

However, a study found that California’s top firms were able to follow through on the early promise and reel in earnings, increasing profits by up to nine per cent on 2011 figures.
The report, by Californian legal web site The Recorder, analysed profits earned by California’s ‘Big’ law firms including Munger Tolles & Olson, Orrick Herrington & Sutcliffe, Latham & Watkins, and Quinn Emmanuel Urquhart & Sullivan.

Entertainment and technology

According to industry analysts, the state’s top firms are doing well due to the relatively strong market for legal services in California – the state’s booming entertainment and technology markets are pushing ahead despite tough economic times - and significant restructuring at larger firms.