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. Not enough copperheads here to care anymore, is my guess. Otherwise, a totally pointless gesture. ... Oh wait: was this done because somebody want to avoid bad press - or was it that some weak kneed officials cravenly fear "protest" violence by "urban youths.."

  2. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

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  5. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

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