Ride the Lightning

Lawyers Experience Steep Decline in New Matters

May 7, 2020

As Bob Ambrogi reported on May 4 in his LawSites blog, during March, the numbers of new legal matters coming to law firms dropped by more than 30% compared to the first five weeks of 2020 and by more than 40% from the year's highest weekly averages. The data was compiled anonymously from users of the practice management company Clio.

56% percent of legal professionals say they have seen a significant decrease in the number of people reaching out to them for legal help, and 53% say they are significantly less busy at work.

"The number-one takeaway is that demand for legal services is down," Newton told Bob. "We saw this very clearly in the data that the new-matter creation rate — which we see as a strong indicator of downstream revenue — is down about 30% across most practice areas."

Of consumers surveyed, 49% say that if they had a legal issue now, they would probably delay reaching out for legal help until after the coronavirus pandemic has subsided.

22% of consumers say they thought most lawyers had stopped offering legal services because of the pandemic, and the same percentage also believe that lawyers are less likely to deliver quality legal services than they were before the pandemic.

Sixty-seven percent of legal professionals say they are much more worried about the success of their practice and 57% are worried about making a living over the next few months. 75% of legal professionals report higher levels of stress and anxiety, and nearly half say they are more concerned for their financial future than for their personal health.

It is important to note that some firms are doing fine. The survey found that 23% of legal professionals have not seen a significant decrease in new matters, and 14% report a significant increase in the number of people looking for legal help.

Eleven percent of firms have already laid off staff, the survey found. Another 15% expect layoffs in the next three to six months.

For lawyers, 69% see technology as more important to their firms now than before the outbreak and 83% say cloud technology is necessary for their survival. Two-thirds of legal professionals believe their day-to-day operations will be impacted long term.

Not surprisingly, 58% of consumers say that if they had to hire a lawyer in the next two months, they would prefer to meet by videoconference than in person. Sixty-nine percent say they would prefer to work with a lawyer who could share documents electronically via a web page, app or online portal.

However, 38% believe that if they had a legal issue go to trial or a hearing, that having it conducted remotely would negatively impact the outcome.

The full research findings can be found at https://www.clio.com/resources/legal-trends/covid-impact/

Sharon D. Nelson, Esq., President, Sensei Enterprises, Inc.
3975 University Drive, Suite 225|Fairfax, VA 22030
Email: Phone: 703-359-0700
Digital Forensics/Cybersecurity/Information Technology
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