An Introduction to the City’s Legal Scene
In the pantheon of major United States legal cities, Philadelphia is a conglomeration of litigation, business, not-for-profit, governmental, and intellectual property practices. The mid-Atlantic region serves as a crossroads for the American legal profession, with law firms linking their local and global expertise to provide clients efficient resources to resolve complex legal issues. The legal community possesses the depth and range of lawyers needed to address the full spectrum of matters large and small. A unique sense of place, combined with a rich historical legacy, makes the City of Brotherly Love an unparalleled legal market. When you look at the largest U . S. law firms by headcount, almost all of them are located in one of the West Coast cities or in Chicago. Even though Philadelphia is a top-10 U.S. city, it seems to be falling behind on this metric, as no Philadelphia firms ranked among the top 100 largest U.S. law firms by headcount in 2018. Most of the major Philadelphia firms for which information is available saw a net decrease in headcounts for 2019, totaling a 3-percent overall decrease for all of them together according to ALM data. In addition to the national and international firms that have offices in Philadelphia, there are several local firms committed to growing in this region.
Ranking Law Firms: Criteria
The criteria used to rank the largest law firms in Philadelphia includes a combination of factors such as the number of attorneys, revenue generated, market influence, and areas of specialty in the legal services offered. The objective is to provide a clear picture of the size and scope of the largest firms within the city and surrounding region.
Initially, we consider the number of practicing lawyers both within the Philadelphia office and across firm’s overall offices. The geographic presence is a factor, and we assess the firms’ ability to provide comprehensive legal services in multiple jurisdictions. The size of the firm’s staff is also taken into account, as this is a factor for being able to offer additional services. Junior, mid-level, and senior associates are all factored into the overall attorney total.
Next we look at information provided in the most recent fiscal year. We assess the gross revenue for the firm, and from this number we calculate revenue per attorney and revenue per equity partner. The epidemiological findings that track law firm statistics suggest that these are two strongly correlated numbers that serve as a gauge for profitability. We also look at the number of equity partners. As the association indicates, equity partnerships (required buy-in) are, "the one way that many law firms of a certain size pay their people." Finally, we factor in other special characteristics, including the firm’s specialties or areas of expertise.
Brief Profiles of Philly’s Largest Law Firms
DLA Piper began operations in Philadelphia in 2005, when the firm expanded its footprint with the merger of Gray Cary Ware & Freidenrich LLP and Piper Rudnick LLP. The firm has approximately 355 attorneys located at its headquarters, with an additional 2,000160 attorneys operating 45 other offices worldwide. The firm focuses its practice in business and finance, education, networks and systems, government affairs, healthcare, intellectual property and information technology, litigation, real estate, and tax and wealth management. DLA Piper recently assisted in the IPO of iShares Gold Trust at the New York Stock Exchange and acted as counsel in the Dow Jones Indexes’ acquisition of four of the Sharia indices.
Foley and Lardner began its history in Philadelphia in 1954 as the firm Klein & Schoor. In 2007, the firm merged with Foley & Larner, creating a firm of more than 900 lawyers in 20 offices. The firm specializes in business, IP, tax, labor and employment, litigation, real estate and bankruptcy practices. Foley & Lardner is known for its work with high-profile clients such as GE Commercial Finance, Merck and Co., and Raytheon, Inc. In 2010, the firm was hired by Tiffany & Co. to counsel on the worldwide expansion of its diamond and gemstone supply chain management processes.
Greenberg Traurig began its start in Philadelphia in 1960 as the Philadelphia-based law firm Schnader, Harrison, Segal & Lewis LLP. In January 2009, Schnader announced a merger with Greenberg Traurig to create a firm with more than 1,600 attorneys in 31 offices in the United States and 18 other countries. The firm specializes in real estate, litigation, labor & employment, government law & policy, intellectual property, energy and environmental law. In 2010, the firm served as the lead bankruptcy counsel to American Airlines Group, Inc. in its Chapter 11 case in Delaware.
Hangley Aronchick Segal Pudlin & Driscoll founded its Philadelphia office in 1987 with seven attorneys to provide legal services to law firms with branch offices in Philadelphia. The firm later expanded into other practice areas, including insurance coverage, intellectual property, labor & employment, trial and appellate litigation, and trusts and estates. Today, Hangley Aronchick has 68 attorneys in its Philadelphia headquarters and an additional 53 attorneys in its New Jersey and Harrisburg offices. In 2010, the firm represented The Commonwealth of Pennsylvania, the Pennsylvania Turnpike Commission, and the Pennsylvania Department of Transportation in a federal lawsuit brought by a group of motor carriers seeking to block the collection of tolls on the Pennsylvania Turnpike.
Morgan, Lewis & Bockius’s Philadelphia office opened in 1981 with two practice groups: litigation and antitrust. In 1999 Walker, Kelsey, Freiberg, Kalil & Hresko joined Morgan Lewis as part of the firm’s continued growth. The firm currently has approximately 1,700 attorneys and 21 practice groups. Morgan, Lewis & Bockius advise clients on various areas of the law, including antitrust & competition, corporate & business transactions, employee benefits & executive compensation, intellectual property, labor & employment, litigation, privacy & data security, real estate and taxation. The firm has spent three years on the Corporate Board Member Magazine’s "America’s Best Corporate Law Firms" list, with the publication calling Morgan Lewis one of the top three law firms for mergers & acquisitions in the Delaware Valley in 2009.
Pepper Hamilton was established in 1897 in Philadelphia as a firm specializing in labor relations and employment law. The firm’s permanent location came in 1921, when it moved its headquarters to the Wanamaker Building. Over the years, the firm grew its practice, adding practices in corporate, regulatory, intellectual property and litigation. Today, Pepper Hamilton has offices across the United States and a total of 880 attorneys in its Philadelphia headquarters, with an additional 129 in its eight other locations worldwide. In 2010, the firm represented Dow Chemical Co. in its $78 billion acquisition of Rohm and Haas Co.
Reed Smith’s Philadelphia office has been in operation since the firm’s founding in 1877. Reed Smith recently opened its modern offices at Three Logan Square, which includes a bar and two conference rooms offering views of the Schuylkill River. The firm has approximately 1,800 attorneys and 26 offices across the United States. Reed Smith’s specialties include antitrust, banking, business torts, commercial litigation, health law, insurance, intellectual property, labor & employment, product liability and transportation. The firm once represented the United Kingdom in the ICC arbitration between the UK and Argentina regarding Argentine debts and offered counsel to the government in the largest fraud trial in Portuguese history.
Wells, Marble and Hinds was founded in 1887 as a firm serving clients in Mississippi, Louisiana and Texas. The firm opened its Philadelphia office in 2005 as a part of a national expansion, and now has 631 attorneys in 22 U.S. cities and 6 international offices. The firm has practice groups in bankruptcy & creditor’s rights, employee benefits and ERISA, energy, environmental, health care, immigration, insurance, labor & employment, litigation, tax, and real estate. The firm has been recognized multiple times on Corporate Counsel Magazine’s "Best Legal Departments of 2008" list, and has previously been honored multiple times as a "Go-To Law Firm" for the energy, insurance, REIT, and a top 10 "Go-To Law Firm" in the overall field by Corporate Counsel.
Areas of Practice and Services
Services and practice areas: The top 10 largest law firms in Philadelphia have a wide breadth of services to offer their clients, which have grown as the firms have expanded over the years.
Cozen O’Connor has built its practice around providing advice and services to assist businesses and individual clients with a variety of legal needs. The firm’s practice groups include antitrust, aviation, cannabis industry, class action, commercial litigation, corporate, cyber law, education, employee benefits, employment and labor law, energy, environment, franchise, government relations, health care, intellectual property, land use and zoning, mining, non-profit entities, professional liability, product liability, real estate, securities and broker-dealer regulation, sports law, technology, trademarks and unfair competition, trusts and estates, and other litigation groups.
Blank Rome provides services through a full-service law firm with a high level of experience in many of the core practice areas needed to address the needs of their clients. Areas of practice include bankruptcy, litigation, commercial litigation, corporate law, maritime law, employee benefits, environmental law, finance, intellectual property, international services, labor and employment law, maritime law, nonprofit organizations law, personal injury, real estate, retail, sports, tax law, trusts and estates, and others.
Duane Morris provides services related to numerous industries, including biotechnology, commercial finance, drug safety, energy, entertainment, environmental law, gaming, higher education, intellectual property, international, labor and employment, litigation and mass torts, real estate, tax, telecommunications, and media and advertising.
Morgan, Lewis & Bockius offers multi-practice services to address complex challenges for clients, with our 2,200 lawyers, 31 offices, 14 practice groups and more than 40 industry groups. All of these combined services and practices allow the firm to solve challenges across a range of industries, including automotive, chemical, financial services, food and beverage, gaming, healthcare, insurance, media and entertainment, oil and gas, pharmaceutical, private equity, real estate, and renewable energy.
Reed Smith supports clients in a number of critical areas, including antitrust, tax, labor and employment issues, bankruptcy, insurance, real estate, public law, product liability, intellectual property, corporate and financial transactions, healthcare, technology, media, transportation, maritime, communications, and labor and employment.
Saul Ewing Arnstein & Lehr provides a range of multi-disciplinary legal services and industries, including construction, education, energy, environmental, federal government contracts, healthcare, higher education, hospitality, insurance, labor and employment, labor relations and employment litigation, litigation, manufacturing, mergers and acquisitions, mobility, real estate, REITs, and tax counsel.
Schnader Harris Segal & Lewis has more than 100 attorneys in their 10 offices who represent a range of industries, including antitrust, arts and letters, banking, class action litigation, commercial finance, commercial litigation, construction, corporate, debtor and creditor, emerging companies, entertainment, environmental, government relations, labor and employment, family business, health care, health insurance, higher education, hospitality, insurance, professional liability, product liability, pro bono, real estate, intellectual property, securities and tax.
Stevens & Lee provides services to meet the growing demand from clients in a broad spectrum of industries, including asset based finance, banking, business insurance, debt collection, distressed companies, economic development, employment and labor services, environmental, equine and livestock law, finance, higher education, industrial and manufacturing, intellectual property, litigation and dispute resolution, media, mergers and acquisitions, oil and gas, hospitality, real estate, tax, telecommunications, transportation, and trade regulation.
Ballard Spahr provides services to help a range of businesses stay within the bounds of federal and state regulations in building and maintaining their real estate holdings. The firm offers services in affordable housing, business improvement districts, commercial and multi-family, condominiums and planned communities, developments finance, development incentives, hotels and recreation, housing, inclusionary zoning, land use and zoning, mixed-use, parking, planned communities, project entitlements, projects and development, economic development, property tax consulting, condominiums, and tax increment financing.
Community and Pro Bono Activities
Understanding how the largest law firms in Philadelphia engage with the local community and address social justice issues is essential to our overview. Pro bono activities, charitable support, and social outreach are core functions for the majority of legal institutions, especially those with numerous attorneys. Each firm has a unique way of giving back to society, and each initiative is instrumental in the development of long-term relationships with local communities.
A partner at Morgan, Lewis & Bockius has led the firm’s pro bono program since 2000, demonstrating its strong commitment to pro bono work and community service. Morgan Lewis’ global practices span all major areas of law, and the firm continues to represent a diverse array of clients across all industries and sectors. In Philadelphia alone, Morgan Lewis boasts over 100 lawyers, including eight practice groups, six section leaders, and two practice chairmen. The Philadelphia office has participated in multiple local projects, including the annual Lawyers In Schools program, which facilitates personal connections between lawyers and Philadelphia schoolchildren. This year, Managing Partner Janice E. Grady interviewed Morgan Lewis Chairman Jami Wintz Mencer about the firm’s dedication to long term partnerships that promote social justice, as well the firm’s philanthropy and diversity programs.
Blank Rome LLP is not only one of the largest law firms in Philadelphia; it’s also a big player in helping Philadelphia with health and welfare issues. The firm supports The Children’s Hospital Foundation and has been a longstanding supporter and co-chair of their annual gala. This year the 2007 Gala was renamed The Blank Rome & Co. 2007 Gala. The firm is also an advocate for public education and social safety nets . The firm also supports the YMCA of Greater Philadelphia through their support of the Y’s Future Leaders program.
Duane Morris LLP is another large firm in Philadelphia that has been handing out money to improve the community. In 2006, a year in which various Duane Morris attorneys and staff members commemorated the firm’s 100th anniversary, the firm pledged to donate $1 million to the United Way of Southeastern Pennsylvania over the next three years, $750,000 of which will support the Education Initiative, which focuses on providing opportunities to help close the achievement gap for disadvantaged youth in the region, and $250,000 for the Health Initiative, which focuses on support for programs that increase access to and elimination of barriers to health care for those in need. The firm also participates in projects to improve bilingual education in Philadelphia, offers pro bono assistance to land strapped urban communities, and provides work to veterans in Philadelphia and the surrounding areas.
Schnader Harrison Segal & Lewis LLP team of 150 attorneys work out of nine different offices in four different states in the country. Schnader Harrison Segal & Lewis LLP is headquartered in Philadelphia, Pennsylvania, and was established in 1935. The firm has seven practice groups, including Antitrust and Franchising, Business and Commercial Litigation, Employment Services, Environmental Law, Health Care, Securities, and Taxation. The firm is committed to helping the community and provides numerous charities and other civic organizations with funds and the support of its legal minds. With an eye towards the expertise and morals of its legal team, the firm is dedicated to pro bono work. Part of that commitment includes an intensive scholarship program aimed at subsidizing the cost of educating young, promising legal professional into active members of the team.
Trends Affecting Big Law Firms in Philadelphia
Several trends have been quickly reshaping the legal industry, with fast-changing technology and the demand for diversity at the forefront. The recent Covid-19 pandemic has accelerated many of these trends throughout the industry. In a report by Ed Koren titled "Law Technology Today 2019’s Top Ten Legal Trends Explored," he notes that advancements in technology (AI, autonomous vehicles, drones, etc.), artificial intelligence, big data, 3D printing and blockchain are all beginning to play a huge role in the legal industry. He explains that "smart contracts, the practice of embedding software code within legal contracts that automatically executes, complete, or enforce transactions as per the contract’s stipulations, could have a significant effect on the legal profession with respect to corporate contracting processes."
Koren also discusses a trend in diversity. He says that "the legal profession is also seeing more and more women take the helm of law firms. Those women include managing partners, chief executive officers, and chairs of law firms." As well, and this is not unique to large law firms, he goes on to discuss the shift to remote work and e-working not just during the pandemic, but that it is expected to continue post-pandemic.
While there have not been significant changes with Philadelphia’s 10 largest law firms based upon the most recent numbers from the Philadelphia Business Journal, they have remained the same for some time. However, the characteristics and makeup of these large law firms is changing, and has been for some time. As businesses move into the next decade, the largest law firms in Philadelphia will be more focused on technology, diverse hiring practices, and implementing efficient work-from-home strategies.
The Future of Large Law Firms in Philadelphia
The future of the largest law firms in Philadelphia is tied to the economy as well as how their clients fare in the marketplace. In many ways, these two forces are much more important to a firm’s fate than the culture or antiquity of a specific practice. In our view, the direction that these large firms will take will depend on two key factors: how they adapt their brand to a changing market and how these firms choose to market themselves in the future.
Back in 1990, nearly half of all legal jobs in America were in firms that had 11 or more lawyers. The most recent statistics show that less than 30% of legal jobs are now in large law firms and those firms account for only 13% of all attorneys. Fewer and fewer attorneys are working at the top large law firms in Philadelphia than in the past. The average age of lawyers in large law firms is now 53, leading to a wave of retirements in the coming years.
For the rest of the economy, few sectors are adding hiring numbers or showing growth. Chicago, Pittsburgh , and New York have all seen legal hiring growth in recent years while Philadelphia has lagged behind. Firms that have large structures and invest heavily in their infrastructure are going to see the hire where work is concentrated. It is far more difficult for large law to bulk up areas of growth when there is so much downward pressure on costs and numbers.
Law firms deal in two economies. The economy for outside legal fees is stagnant and lacks any significant growth. The economy for legal talent is actually smaller and shrinking. This combination of factors across the board creates an environment in which large law firms are under constant pressure to do more with less. In order to sustain their business model, they’re going to have to eliminate practice areas and reduce expenses.
Small firms are pressure to expand into new areas, especially now that these larger firms are downsizing. Traditionally these smaller firms focus on low overhead, competitive pricing, and tend to limit their geographic footprint. The smaller firms hold onto their clients and benefits when these clients have bad years while the larger firms lose out on the work and the client. We’ve seen this play out all across the U.S. and it’s likely to have an impact on the Philadelphia market as well.