HOURLY RATES NEAR RECORD RISE
A Thomson Reuters study reveals that lawyers’ hourly rates in the US have soared by 7.4% in the last year. What’s surprising is that the growth for the profession as a whole considerably outstrips the 5.0-5.5% rise at top-100 US firms. While the number for the firms outside the top-100 is not cited, simple arithmetic means that it must be significantly more than the 7.4% increase in the profession as a whole. Another study by LexisNexis CounselLink showed that the average partner rate rose 5.1% in 2024, the second-highest growth rate since CounselLink’s first report in 2013.
Related Article: LexisNexis: AI will allow lawyers to charge $10K hourly
MEDIATION REALLY WORKS
The Eleventh CEDR Mediation Audit, a 2024 survey of civil and commercial mediators in the UK, reveals an aggregate settlement rate of 87% in mediation outcomes. Even more salutary is the conclusion that 70% of mediations settle on the “day of mediation”, with the remainder settling “shortly after mediation day”. Barry Leon, an arbitrator and mediator at Toronto’s Arbitration Place, previously a judge of the commercial division of the Eastern Caribbean Supreme Court, and formerly a partner and coordinator of Torys LLP’s litigation and dispute resolution practice, believes the data is credible enough to allow lawyers to tell their clients that they have “a better than 85% chance of getting a result that is agreeable to you.”
Another of the survey’s interesting conclusions is the drop in online mediation from 89% during the pandemic to 64% in 2022 to 38% in 2024. Online use is twice as likely in lower financial value mediations, meaning that mainstream commercial mediations’ resort to online sessions are well below the 38% overall average.
Related Article: Mandatory mediation undermines experts’ reports
DOJ SEEKS SANCTIONS AGAINST LAWYER REPRESENTING DEPORTEE
The US Department of Justice has accused immigration lawyer Joshua Schroeder, a sole practitioner and legal scholar who also focuses on constitutional law and IP, of ‘reckless misrepresentations’ in briefly delaying the deportation of his Laotian client with several court filings. In its materials on a sanctions motion, the Trump administration claims Schroeder made “myriad meritless contentions” and seeks “substantial” financial penalties. Targetting Schroeder follows on a Trump memorandum in March instructing the attorney-general to prioritize sanctions against lawyers who pursue “frivolous, unreasonable, or vexatious” lawsuits against the government. Critics says the President is weaponizing the Justice Department against his opponents.
Related Article: Fearful lawyers refusing cases against Trump
PENSION RISK TRANSFER MARKET DECLINE: AN OPPORTUNITY FOR PLAN SPONSORS?
Sun Life has predicted a 60% dip in PRT volumes in 2025. But its analysts say the market’s volatility may be an opportunity for plan sponsors: “A slower PRT market means that insurers are motivated to transact – potentially leading to attractive terms and pricing,” they write. Indeed, they add, current annuity yields suggest that “plan sponsors are getting longevity and investment risk transfer for free!” Brookfield Wealth Solutions Ltd., for one, is certainly hopping on the bandwagon: a US SEC filing reveals the company is targetting the UK pension risk transfer industry with a planned $3.17B acquisition of insurance firm Just Group.
Related Article: Sun Life report: Canadian pension risk transfers exceed $3 billion in 2024
RULE OF LAW PLEDGES
Since a group of lawyers began collecting signatures from their Canadian counterparts in support of a rule of law pledge on May 30, just 1,100 lawyers, representing less than 3% of Canada’s 41,000 lawyers, have signed up. I may be wrong, but the response seems less than stellar. Surely the profession can do better.
Related Article: Canadian lawyers flunk Rule of Law pledge test
Julius Melnitzer is a Toronto-based legal affairs writer, ghostwriter, writing coach and media trainer. Readers can reach him at julius@legalwriter.net or on his website.