The golden age of litigation boutiques is now

(Originally published in the Daily Journal.)

In the world of high-stakes litigation, something’s gotta give. Last year, billing rates increased by double digits at most Am Law 50 firms, according to Wells Fargo’s legal specialty group. M&A activity is on the rise, too. With a handful of global firms continuing to dominate the market, others are electing to join forces, combining their client rosters, capabilities, and geographic footprints to remain competitive.

Yet bigger is not necessarily better for every case. The benefits of Big Law’s approach and business model do not always justify the extraordinary costs, even for significant civil and criminal work. That’s why many sophisticated clients are turning to boutique litigation firms. High-quality boutiques can provide clients with a variety of benefits they may not find elsewhere, from cost efficiencies to trial chops. Many boutiques have also built market-leading reputations of their own, supported by superstar founding partners and enviable track records at trial.

Nonetheless, boutiques will never replace Big Law. Instead, the two can function as complementary partners in today’s dynamic litigation market. In the civil arena, Big Law remains the ideal choice for multibillion-dollar cases, particularly ones with multi-jurisdictional or cross-border needs, or that require a complement of non-litigation capabilities. Well-insured companies will also look to retain large firms to serve as company counsel when under criminal investigation.

But boutiques are uniquely well-positioned to handle many different types of civil and criminal cases. They pair efficiency and flexibility with Big Law-level talent and experience. As market pressures converge, rates skyrocket, and the legal landscape grows more unpredictable by the day, boutiques are emerging as a winning choice.

Boutiques can handle it all.

For many years, clients only engaged boutiques for specialized matters or conflict work. Now, however, boutiques are moving upmarket, becoming clients’ first call when everything is on the line.

Boutiques can take on bet-the-company disputes alongside labyrinthine criminal investigations. They have repeatedly demonstrated their capacity to handle the highest level of volume, complexity, and stakes in complex commercial litigation, as well as amounts in controversy that surpass $100 million. Boutiques also offer a lifeline to many individuals facing criminal investigation or prosecution. Unless legal fees are covered by an employer or insurer, even high-net-worth individuals struggle to afford the rates set by large firms. But the best criminal defense is not the most expensive one. At a boutique, the strength of an individual’s defense is not contingent on their liability insurance.

Boutiques price to meet clients’ needs.

Alternative fee arrangements make litigation a win-win for boutiques and clients alike. The straight billable hour is only one of multiple possible arrangements—and, in the case of criminal work, often an outlier—freeing clients who have been limited by the rates and rigid infrastructure of Big Law.

The higher the stakes, the more pricing matters. In a nine-figure commercial dispute, legal fees can take a significant bite out of a settlement or award. When a client chooses a boutique for this work, they save millions of dollars without sacrificing quality or outcome. The same goes for criminal cases in which an individual must weigh cost against an array of potentially devastating consequences. Engaging a boutique allows them to meet their financial obligations—including any associated civil settlements or judgments—while protecting their rights, reputation, and liberty. Ultimately, boutiques offer what every client prizes most: value for time and money.

The boutique business model also nurtures strong relationships. Clients are rarely hit with premium rates or unexpected increases. Firms have skin in the game through contingency work and success fees. When the interests of client and counsel are aligned, the yield is a real partnership, one that lasts long beyond the conclusion of a case.

Boutiques are designed to go to trial.  

When a client hires a boutique, the case will never be handed off to a “trial firm.” Many boutiques are courtroom-ready, prepared to handle litigation from inception all the way through appeal. They’re also well-equipped to lead criminal investigations that evolve into prosecutions.

Litigation doesn’t always end in trial, but good trial lawyers plan like it will. Boutique firms are staffed with trial lawyers at every level—from veteran first chairs to associates who’ve tried multiple cases by their third year of practice—which enables them to be strategic from day one. Where a larger firm might rely on resources and manpower, boutique lawyers draw on their trial experience to plot the straightest course to victory while sidestepping unnecessary costs.

With extensive trial experience comes an extensive network. Because boutique lawyers appear in court dozens of times a year, they have strong relationships with the federal and state bench. Judges are familiar with lawyers’ style, and lawyers are familiar with judges’ preferences. This translates into a home court advantage for clients: credibility before their lawyer even walks into the courtroom.

Boutiques are well-oiled machines.

Overhead is minimal in the boutique environment. So is bloat.

We all know that clients hire lawyers, not firms. But when clients hire a partner at a boutique, they’re hiring the partner’s team, too. These teams are small and nimble, comprised of well-trained associates whose rates reflect value added, not time spent. Collaboration is second nature for boutique teams, who are used to rowing in the same direction, no matter which case they’re on. For clients, that means no silos, no lags in communication, and nothing slipping through the cracks.

Technology also keeps boutiques neck and neck with their Big Law peers. Automated tools eliminate the need for an army of associates to review documents, giving boutiques the power to capably handle large, complex investigations and litigation. At the same time, boutique lawyers are sensitive to clients’ budgets, proposing only the services that are necessary to resolve the case.

Boutiques can take on conflicts that curb other firms.  

Boutiques can step up where other firms step back. Between executive orders, agency actions, and competing internal constituencies, it’s easy to upset the apple cart at large firms. In this risk-averse legal culture, boutiques are prepared to forge ahead in conflict, whether political or of interest.

While spinoff firms are nothing new, today’s political climate has enlarged the conflict pool on an unprecedented scale. Recently, some partners have split from big firms under fire to form their own boutiques, enabling them to take on work that’s adverse to the presidential administration.

In addition, we’ve all heard stories from Big Law partners who were dissuaded from taking a case against a Fortune 500 company, solely because another partner at the firm believed they had a shot at one day getting hired by the company. At a boutique, partners have the leeway to make their own decisions and represent clients that may not be the best fit at a larger firm.

Boutiques have entered a golden age, and clients are reaping the benefits.

 Firms at the top of the industry are competing fiercely for market share. With some firms consolidating and others falling away, clients have less choice than ever before. As they search for an alternative to global mega-firms, whose business models may not align with their needs, the litigation boutique’s value proposition is clear: do more with less. For clients embroiled in high-stakes civil and criminal litigation, that means resolution with minimal risk and maximum efficiency.