Some Law Firms Spend Money On Weird Things

// When I was an associate at a Biglaw firm, I was perplexed by some of the expensive things on which the firm spent money. The firm had teams of people on the payroll that fulfilled somewhat unnecessary administrative functions, and the shop blew money that probably could have been spent in better ways on expensive travel. Moreover, there were a few other things in my experience that Biglaw firms and other shops spent money on that seemed to make little sense and deprived the shop of funds that could have gone to other, more important purposes.

Art

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About a decade ago, I worked at a Biglaw firm that had a sizeable art collection. My memory is a little fuzzy about this collection, and I only picked up information about it secondhand since partners did not talk about it much to associates. However, the law firm apparently started collecting art as a way to adorn the halls of the main office (years before I arrived). I believe this effort was spearheaded by the spouse of one of the founding partners. Over time, the law firm collected quite a large amount of art, and I believe that offices firmwide could request that art be hung on their walls so that their spaces would be less bland.

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The law firm was so proud of its art collection that it created a pretty nice coffee table book that included a narrative about each piece of art. The shop produced numerous copies of this book, and it could be found all around our satellite office of the firm. I still have a copy on my coffee table at home! The coffee table book was an additional expense that did not seem related to the legal services mission of the firm, and it is still unclear to me what utility the firm really got out of its expensive art collection and coffee table books.

History Projects

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Some law firms have storied historical pasts, and they can rightly claim a place in the annals of the legal profession. Those shops might want to invest in histories about their law firm since such efforts can increase a firm’s prestige and help promote its culture. However, not all large law firms have a storied-enough past for it to make sense to commission a history.

I once worked at a large law firm that no one would call particularly prestigious or historical. However, the law firm spent resources commissioning a history of the shop and — you guessed it — turned this history into a coffee table book. Do law firms have a fetish about coffee table books? The only two large firms I ever worked at published their own coffee table books … but I digress.

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This coffee table book including the history of that shop was well-researched and had vivid images. I remember the book reproduced the oldest document that bore the law firms stationary, which was interesting. However, the history of the law firm was rarely connected to larger historical events, and the history of that shop would likely only interest a handful of old timers who devoted their careers to that shop. I am not sure why a firm like that, which did not have a historical past like some of the more prestigious law firms, would blow money on a project like a law firm history.

Some Swag

I already wrote an article about law firm swag — I haven’t done a coffee table book about it … yet — and sometimes, swag can help advertise the firm and build its culture. However, law firms often produce swag that is a waste of money. For instance, one person’s response to my initial swag article that of how he once worked at a law firm that handed out atlases emblazoned with the law firm’s logo. Atlases aren’t really useful, and the law firm logo on an atlas is likely not going to be seen by too many people. One time, I receive wireless headphones as law firm swag, which I loved initially. However, the headphones were not the best quality, and the logo on each of the earbuds was really small and was likely not seen by too many people.

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All told, larger law firms may generate tons of money, and partners might want to spend this money on nonlegal expenses in order to flex and market the name of the shop. However, law firm managers should be deliberate when spending money so that they are not frivolous with costs that are incurred by a firm.

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Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at [email protected].

Topics

Biglaw, Coffee Table Books, Jordan Rothman, Small Law Firms