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For as long as I can remember, lawyers were told to specialize in a certain area of law because it was easier to manage and generally more profitable. A solo lawyer having a general practice was perceived to be a newbie or someone who couldn’t get enough clients. Or to put it more charitably, something every new solo lawyer had to do until they found their niche.
Some law firms have general practices, but most of them are just a bunch of specialty lawyers who are splitting the office lease payment.
But there are some people who want to have a general practice. These tend to be people who are fascinated by multiple areas of the law. Or they were exposed to different practice areas while doing internships or externships during college or law school.
So in the age of specialization, is it possible to have a profitable and fulfilling general practice? Let’s take a look at the pros and cons.
Having a broad knowledge of the law has its advantages. The main one being that the lawyer can provide more comprehensive advice. For example, if a senior citizen were to ask me, a tax lawyer, what the consequences of gambling winnings are on her social security payments, I would tell her that some of her winnings might be taxable, and it could make her social security income taxable. Fortunately, her taxes can be minimized or eliminated by keeping a record of her gambling losses to offset the winnings.
On the other hand, a general practice lawyer would also advise that her reported gambling winnings will increase her Medicare premiums regardless of whether she had losses to offset the winnings. Very few people do not learn this until the damage has already been done. After all, who consults a lawyer before they go to a casino?
Most people hire lawyers only a few times in their lives (mostly when they are in trouble) and then hope to never see one again. Thus, another advantage of having a general practice is that it allows lawyers to maintain a long-term relationship with their clients. This can work well for all parties. The lawyer has a steady source of income, although not a lot, which will be explained later. The client will not need to search for and vet multiple lawyers.
There are some problems with having a general law practice. The biggest problem is dealing with conflicts of interest. In short, if you try to help everyone with every legal issue, eventually you will be faced with a conflict. This is particularly the case in small communities with few people and fewer lawyers.
The classic example is where you help two (or more) people start a business by setting up a corporation or a limited liability company. You might likely be the general counsel to the business, providing advice on an as-needed basis. But some time later, the partners may have a falling out. You might be able to help by interpreting the by-laws or operating agreement to settle a dispute. Or you can act as a mediator. But if the parties won’t budge and a court has to get involved, you likely won’t be able to represent any of them.
The second problem is keeping up with all of the latest legal developments. Even specialist lawyers must spend considerable time reading new laws, administrative regulations and court decisions. Also, they must anticipate how those new items will affect their current and future clients. Imagine having to do this many times over as a generalist. For people who must know everything about everything, this can be a major time suck. However, this problem might be somewhat overblown. Many lawyers participating in specialty groups will announce and even analyze new developments, especially if they are important. Also, I’ve been told that if you know the basics of a certain field of law, then it will be easier to understand new developments and changes.
Lastly, you may need to apply a number of alternative fee structures. In most cases, generalists serve the middle class and the indigent. And unfortunately, most Americans live paycheck to paycheck so they may not have the budget to hire an attorney unless it’s a very serious situation. What this means is that you may not get many clients who can pay a large amount up front. So you will have to take cases on contingency, payment plans, or flat-fee consults. If you are just starting out, you may get burned by a client a few times. But eventually you will be able to turn away potentially problematic clients or structure a fee arrangement that is fair to everyone.
So based on the above, a general practice is not a default practice area for new or failing lawyers. It can be profitable but it depends on many factors, many of which the lawyer cannot control. Lawyers will have to spend more time keeping up with the law, and likely serve clients who cannot afford to pay lawyer fees up front. But being able to provide multidisciplinary legal advice is a skill that few lawyers today have.
Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.







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