A Pivotal Moment in the Evolution of Major Law Firms
The transformation of the legal profession from a revered field to a cluster of businesses focused solely on profit generation reached its zenith with a recent decision.
In a memo dated March 23, Brad Karp, the chairman of Paul, Weiss, Rifkind, Wharton, & Garrison LLP, used 1,613 words to justify his firm’s yield to President Donald Trump’s pressures. Yet, the entire situation could be summarized in one word: greed.
The legal community has expressed both shock and confusion over Paul Weiss’s decision not to challenge Trump’s unconstitutional order, which targeted the firm directly. This decision marks a significant point in the shift of large law firms, often referred to as Big Law, from esteemed professions to entities driven by profit.
In the Big Law business model, success is measured strictly by quantifiable metrics, neglecting values such as defending the Constitution, maintaining democracy, or upholding the rule of law.
The book The Lawyer Bubble: a Profession in Crisis discusses this shift, drawing on insights from my 30 years as a litigator within these prominent firms. The primary objective for most of these firms is to maximize the immediate income of their equity partners. Firm success is now defined by several metrics: size, growth, revenues, billable hours, leverage, and profits per partner.
By these standards, Paul Weiss has achieved remarkable success. In 2024, the firm’s revenues topped $2.6 billion, with average profits per equity partner exceeding $7.5 million.
A Profitable Strategy, But at What Cost?
Karp directed his memo to the “Paul Weiss Community,” which includes over 1,000 lawyers. However, the true influencers in any Big Law firm are the equity partners, of which Paul Weiss had 212 as of September 2024.
Within these firms, a small fraction of partners who manage the most lucrative client accounts dominate the decision-making, shape the firm’s culture, and receive the lion’s share of profits. Typically, the highest-paid equity partners make ten times more than their lower-paid counterparts.
While it’s critical to manage any large organization efficiently, many leaders of Big Law firms have become so enamored with their business metrics that they’ve lost sight of their original motivations for practicing law.
Legal practice isn’t solely about maximizing revenue and minimizing costs. Yet, the prevailing business model in Big Law only values what can be precisely measured, leaving no room for defending core democratic principles. Karp’s memo does mention that Paul Weiss lawyers dedicate considerable time to worthy causes, but this doesn’t justify yielding to Trump’s unlawful demands.
Trump’s Challenge
Trump has consistently attacked the judicial system, labeling attorneys and judges as biased against him. These attacks had not significantly impacted Big Law until Trump targeted Covington & Burling and later all members of Perkins Coie.
Faced with existential threats, Perkins Coie and their attorneys from Williams & Connolly fought back, gaining a favorable ruling from Federal District Court Judge Beryl Howell, which momentarily halted Trump’s actions.
Despite this setback, Trump escalated his efforts against Paul Weiss with a similar directive, demonstrating his typical response to failure: doubling down. He also unsuccessfully attempted to disqualify Judge Howell from the Perkins Coie case.
A Monumental Failure
Given Judge Howell’s decisive ruling in favor of Perkins Coie, Paul Weiss had every reason to resist. Several factors should have made this an easy decision.
Firstly, every lawyer takes an oath to defend the Constitution and uphold the rule of law, obligations that are not optional.
Secondly, the financial stakes were manageable for Paul Weiss’s wealthy equity partners.
In these challenging times, leaders in Big Law must consider responsibilities beyond mere profit maximization.
Thirdly, the legal community and broader corporate world looked to Paul Weiss for leadership during this critical period.
Lastly, Trump had made clear his intent to continue his assaults on the legal system and its defenders.
Yet, Paul Weiss gave in. Karp mentioned concerns about becoming “persona non grata” with the administration, a notion he repeated twice. Such short-term fears overlook the long-term legal and commercial ramifications of capitulating. Without the rule of law, the certainty needed for effective business vanishes, making contracts unenforceable and rights indefensible.
Karp also noted the firm’s general advice to clients in dire situations is to settle to avoid ruin. But what if the firm’s own advice, when put to the test, contradicts their actions?
As stewards of the legal profession in perilous times, all Big Law partners should prioritize ethical considerations over profit metrics, echoing William Bruce Cameron’s observation that not everything significant is quantifiable.
The battle is far from over. Just four days after Paul Weiss’s capitulation, Trump issued an executive order against Jenner & Block, continuing his pattern of attacks.
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