Priced out of the market

February 11, 2009
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A handful of partners and attorneys are leaving Bingham McHale in Indianapolis to start their own insurance litigation firm because as one partner said, “We were pricing ourselves out of the market.”

The amicable split between the attorneys and the fifth-largest firm in Indianapolis raises a few eyebrows and questions. An article in today’s Indiana Lawyer Daily about the new firm quotes partner Jim Strenski as saying an increase in overhead costs and pressure to raise client rates contributed to the new firm’s creation.

If this is happening in one practice area in one firm, it must be happening in other areas and in other firms. Could this be contributing to the layoffs of legal support staff and rumored layoffs or departure of attorneys around town?

This is a smart move by these attorneys and support staff creating Cantrell Strenski & Mehringer. There seems to be a trend among businesses to take their business to smaller firms when economic times get tough because smaller firms are able to provide their services for a lower price. Why stay with a firm where you are struggling to keep or attract clients because of high rates and costs when you can start a small firm that may be more attractive to businesses? And if the firm is struggling economically, it wins too because it’s reduced overhead, salaries, and benefits without having to fire anyone.

I’m usually not a betting person, but I think this move may spur other attorneys in Indianapolis at larger firms to take a look at starting a new firm. With the economy how it is and with no signs of it getting better soon, smaller firms may be more attractive to clients and the wave of the legal immediate future.

Plus, if this same issue of having to raise clients’ rates and meet increasing overhead costs is happening elsewhere, larger firms are going to be struggling to maintain clients and attorneys. A struggling firm may lead to attorney cuts. Why not jump ship and start your own firm before things get really tough at your firm or you’re let go?
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  • This type of thing is really relatively old news within the insurance defense bar all across the country. Since the early 1990\'s larger firms literally kicked out their lower billing insurance defense attorneys as they grew fat on the profits of higher billing corporate clients. The larger firms felt that their insurance defense lawyers were literally taking up space that could be used by higher billing attorneys. The only thing that appears to be different about the Bingham-McHale situation is that this time, the insurance defense attorneys are apparently taking the initiative to leave.

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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