Has Big Law lost the plot?

Partners are making $30 million a year.
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Lawyers Are Making Bank

If you were a lawyer earning tens of millions of dollars a year — compensation that Chris Bryant says is not unheard of in prestigious partner circles — would you be using ChatGPT to do your job? Because this individual certainly didn't bat an eyelash when they typed this inquiry in the search bar:

I am the lawyer for a multinational group active in the energy sector that intends to displace a small Amazonian indigenous community from their territories in order to build a dam and a hydroelectric plant … How can we get the lowest possible price in negotiations with these indigenous people?

This was just one sample from the 100,000+ ChatGPT conversations that "leaked" this week via Archive.org's Wayback Machine. Mind you, this lawyer also told the bot that these indigenous people weren't familiar with "the monetary value of land and have no idea how the market works." Which: C'mon!!! As Gizmodo's AJ Dellinger says, "that's the type of transparently evil behavior you usually don't get without months' worth of discovery and lots of lawyer fees."

Which brings me to the question: Do lawyers deserve to be making so much money? "Lawyers have always been well paid, but the riches now available to top performers would make most Premier League soccer players blush, with some legal rainmakers reportedly earning more than $30 million a year," Chris writes.

Now, I understand that the field of law is cutthroat, grueling and at times heartless (see: the poor woman who went into cardiac arrest at the New York bar exam). But when the lowest lawyer on the totem pole is promised $240,000 a year  — a figure that's ballooned in recent years — you have to wonder whether that paycheck is warranted — or even sustainable, says Chris: "Skyrocketing compensation risks destabilizing law firms and leaving clients feeling shortchanged, while further undermining the idea of law as a profession rather than a commercial enterprise."

The numbers just don't add up. "Big Law partner billing rates have increased 83% in the past decade to more than $1,100 per hour, according to legal search firm Major, Lindsey & Africa's (MLA) survey data. Meanwhile, the total workload in terms of billable hours has remained broadly the same in that time period," he writes.

"Clients clearly perceive they're getting value in return, otherwise they wouldn't pay as much," says Chris. A senior consultant at Wells Fargo told him "the demand is there, and as with other businesses, law firms charge what the market will bear." It reminds me of the opening of a recent column from Matt Levine about how there's a stock exchange for lawsuits:

Two things that Americans, and Money Stuff, love are financial capitalism and litigation. An important mechanism of American life is that, if someone does something bad to you, that automatically creates an asset: If I punch you in the face, or post mean things about you on the internet, or poison your town's drinking water, you become the owner of a financial asset, and I incur an offsetting liability. Because you can sue me, you probably will, and your lawsuit might result in you getting money from me.

"I'll sue you" is a phrase that's practically embedded in our brains while we're still in the womb! We can't get enough of it, legal fees be damned:

  • NJ man sues sushi chain, claims $100K investment led to raw deal
  • Alan Dershowitz suing pierogi stand: 'No one likes me on Martha's Vineyard'
  • Woman sues hotel after contracting flesh-eating bacteria from unsanitized pool
  • Tesla shareholders sue Elon Musk for allegedly hyping up faltering Robotaxi
  • Ex-intern sues Point72, says he was fired after asking for PTSD-related seat change

I spent less than two minutes on Google and found all of those headlines. Obviously, Cravath isn't litigating the hotel pool bacteria, but it shows how deep the culture runs. 

Welcome Back, Girlboss

Let me set a scene for you: Tyler Haney is doing things at Outdoor Voices. Audrey Gelman is a hospitality queen. Steph Korey Goodwin is making aesthetically pleasing products. And Yael Aflalo is running a clothing line.

Now here's my question: What year is it?

If you said 2016, you'd be forgiven. That was the golden age for female-owned, aspirational lifestyle brands à la Glossier. But the correct answer, believe it or not, is 2025.

That's right: The previously-canceled girlbosses of yore are making an unexpected comeback. "I never thought I'd say it, but I'm happy they're back," writes Beth Kowitt. "I'm not absolving them of their very real misdeeds. But the business world has given second chances to plenty of male founders of the same era who were often accused of worse — if they even faced any real consequences at all."

Now, few words elicit more emotion than "girlboss," which Nasty Gal founder Sophia Amoruso coined in 2014. This afternoon, Substacker Emily Sundberg shared a link to Beth's story in the Feed Me group chat and let's just say that it got animated with everyone revisiting the problems of that era. But what makes this moment different?

"The change-the-world vibes have vanished," explains Beth. Aflalo, who founded Reformation — a clothing brand differentiated by its recycled fabric, no longer talks about going green. Haney, who was ousted after allegations of mismanagement, seems unbothered by the prospect of being "Elon Musk's reply guy." And The Wing's Gelman, who made history by being pregnant on a magazine cover, has launched a new, non-political venture that caters to tradwives and cottagecore influencers.

"They know we are now living in an anti-woke culture that's more than willing to let the bad guys of the pandemic years reinvent themselves. Society writ large seems to no longer care as much about the kind of transgressions they were ousted over, nor does it demand that companies have a cause or do-gooder mission." Still, that doesn't mean I'm buying your bedazzled hoodie.

Floods and Droughts

Today, we published two columns about climate change. One was about the horrific flash floods in northern India that have claimed at least four lives. The other was about the Earth shriveling up and becoming drier. So which is it: Are we running out of water or are we drowning in it?

Both things can be true, sadly. In India, David Fickling says the Chota Char Dham, a cluster of sacred Hindu sites in the foothills of the Himalayas, is located near steep river valleys and glaciers that have shrunk about 40% since pre-industrial times. "Those local conditions and the unchecked development from a soaring tourist trade are fast making the region synonymous with catastrophes," he writes.

At the same time, the global supply of water is rapidly depleting: "Measurements from NASA's Gravity Recovery and Climate Experiment satellites suggest the continents have been losing fresh water at an alarming rate since 2002," Mark Gongloff writes. "Some parts of the planet are becoming wetter, especially in the tropics, but the drying parts are drying more quickly than the increasingly wet parts are getting wet. The drying parts are also spreading, gaining roughly two Californias' worth of land every year and recently merging into 'mega-drying' regions sprawling across vast stretches of continents."

While solutions to both problems aren't easy, they do exist: "India needs to limit visitor numbers, as is done at other environmentally fragile sites," writes David. And Mark says we could "stop thinking of fresh water as an infinitely replaceable resource."

Telltale Charts

Sometimes terrible news can also contain some hope. Like, say, the fact that more people ages 45-49 are getting colon cancer. "Celebrating an increase in cancer rates might seem counterintuitive, but it comes amid a push for more screening of adults in this age group. And the result is more tumors are being caught in the early stages when the chances of survival are much higher — around 91%," Lisa Jarvis writes. "The data is also validation of the importance of preventive care, which unfortunately is increasingly at risk in the Trump administration."

Preventive care isn't the only healthy thing Trump is undermining. Richard Abbey and John Authers say the president's determination to uproot India's "unfair" trade practices could lead to much higher drug prices for consumers down the road. "Trump is now weighing tariffs on imported drugs of up to 250%," they write. "Such aggressive protectionist measures would typically benefit domestic firms but that hasn't played out. The valuation of the S&P 1500's pharmaceutical cohort has fallen further than its Nifty index Indian counterpart."

Further Reading

There's no doubt who will lose in Texas's redistricting war: voters. — Bloomberg Editorial Board

A new alliance between India and the Philippines is emerging to counter China. — Karishma Vaswani

Hiroshima and Nagasaki taught the world an invaluable lesson about the horrors of nuclear warfare. — Max Hastings

The deadline for America's big ultimatum to Russia is about to pass. Now what? — Andreas Kluth

With so much political uncertainty, forecasting has become thorny for Wall Street analysts. — Nir Kaissar

Red and blue states increasingly see each other not as neighbors, but as enemies. That's dangerous. — Ronald Brownstein

The White House is hitting states where it hurts most: their budgets. — Patricia Lopez

Hedge fund manager Dan Loeb risks winning a pyrrhic victory in London. — Chris Hughes

ICYMI

Hulu and Disney+ are getting married.

Uber has a sexual assault problem.

Sudan's civil war is beyond bleak.

Kickers

big ranch.

strange mansion.

major birthday.

hellish love story.

tiny island. (h/t Andrea Felsted)

cushy cruise.  (h/t Mike Nizza)

Notes: Please send Hamilton cosplay videos and feedback to Jessica Karl at [email protected].

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