The 89 Law Firms GCs Recommend Most

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Client recommendations sit at the epicenter of law firm hiring and recurring business. Virtually every top legal decision maker looks to peer recommendations when first thinking of hiring a new law firm. Fully 57% of these decision makers will hire the first firm recommended—even if this firm is recommended just once—hence the power of the unprompted recommendation.

The peer-to-peer recommendation is serious business. Every recommendation is a personal statement about the type of provider—the commitment, service, quality, and demeanor—you are willing to entrust to a peer—from whom they would expect the same.

Superior client service is consistently the leading driver of law firm recommendations by General Counsel. Superior service accounts for nearly 5 times more recommendations (70%) than any other single factor.

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Overall, top legal decision makers recommend 89 law firms. They are:

The 10 Law Firms Standout as Receiving the Most Recommendations

27 Law Firms Standout as Highly Recommended

You can see all the law firms clients recommend and why in The BTI Most Recommended Law Firms 2019: The Firms Top Legal Decision Makers Recommend Above All Others. You can download a copy of the report here.

Congratulations to these high-performing firms.

MBR

Clients See 8 Types of Law Firms in Today’s Market

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Clients use anywhere between 12 and 41 law firms, on average. Small and mid-sized clients use 12 or so. Some large clients easily go over 100 or more. Of these law firms clients use, only 10 are in the sweet spot—considered core by legal decision makers. This number drops to 5 at smaller clients. And even among these core providers, distinct differences can tell you whether or not your client relationship will stand the test of time.

First, let’s look at how GCs manage their outside law firms:

The Primary Providers

Clients turn to these law firms first when a new legal need arises. Clients consider these firms their most valued and trusted providers—and as a reward, these firms split the lion’s share of a client’s outside counsel spending. Clients rely on between 2 to 4 primary providers in total. Each wants to be the top primary provider. And with good reason: this is where the best, most complex, and highest-rate work lives.

Secondary Law Firms

While not in the primary seat, these firms still boast strong client relationships and receive a significant portion of external legal spending. In fact, the primary and secondary law firms combined account for 80% of a client’s total spending with law firms.

The secondary firm can be a great opportunity or potential risk. You can be auditioning for a primary spot – or be a fallen primary.

The Rest of the Law Firms

The last (and largest) group of law firms on a client’s roster are the firms where the relationships are the weakest. These are the firms handling specialized work (i.e., in highly specialized areas of expertise or geography-driven cases) with few points of leverage.

Success demands you understand the strength of your client relationships—especially the relationships you have with each of your most important clients. Your position dictates the best strategy for building stronger and better client relationships.

The combination of your positioning as a primary or secondary firm, and your client’s investment in your firm, drives your strength. BTI asked more than 650 top legal decision makers about where each of their law firms stands and who they recommend to peers—this tells you exactly where you stand. The analysis reveals 8 categories of law firms. These include:

BTI Power Elite

The 28 firms enjoy the absolute strongest client relationships; positioned for long-term organic growth and substantial inbound lead flow. These firms have the most primary relationships and are the first unprompted firms to be recommended to a peer. The BTI Power Elite have the best of both worlds—and these 26 firms have more of these relationships than any other firm—offering organic growth and inbound leads.

BTI Power Players

These 34 firms have a large number of strong client relationships—but not quite as many as the BTI Power Elite. The BTI Power Players are within shouting distance of the BTI Power Elite—with the potential to unseat Power Elite firms to gain more market share and clients.

Contenders

Current relationships are strong and have the underlying strength to be much stronger. These 45 law firms can harness the skills around their strong client relationships and jumpstart growth to develop a larger number of the strongest client relationships.

Celebrities

The Celebrities are the firms clients love to recommend; their recommendation rates far outpace the number of core relationships these firm enjoy. These 9 firms garner exceptional mindshare and clients are inclined to use them for substantive work. Their challenge is to develop these clients into more business to earn the strongest relationships. You can see by the small number of firms in this group— this is a unique spot from which to grow.

Special Forces

These are the 27 trusted providers clients call in for special situations; these firms have more core relationships than 70% of all other law firms—but earn fewer unprompted recommendations. Clients see their role as specialized and targeted—the Special Forces law firms have the opportunity to build on this trust to broaden the relationship. But, like the Celebrities—success demands a strong dose of business development and gaining the coveted unprompted recommendation. These firms have more strength than most.

The SWAT Team

The team to call to get the job done; these firms have functionally driven core relationships, but an absence of unprompted recommendations. Like the Special Forces, clients know they can rely on these 9 firms—their challenge is to build these into ongoing relationships through a combination of client service and business development—often delivered hand-in-hand.

Underdogs

These 186 firms are the firms clients love to root for; they have the potential to rise through the ranks if they can increase their share of core relationships. Success calls for serious and systematic business development initiatives – this would include BD training for client-savvy partners, client service training for all other partners, and a healthy dose of client feedback to detail exactly where to improve performance, spot opportunity, and better bond with clients.

Everyone Else

These firms are missing top legal decision makers’ radars when it comes to meaningful client relationships. They may be doing work but are in more of a functional or task-driven role. This can be a bit deceptive because a task at a large company can generate substantial fees—but they have a muted future. These firms can identify themselves as they will have high client turnover, high business development costs, and lower realization. The firms can start on the path to a stronger, more enduring relationship by targeting their best clients, getting feedback, embracing client service, and putting business development out front as a top priority—as the chances of new complex work finding its way to a firm in this group are low—even through RFPs.

Outperform Everyone Else

Firms who know the strength of their client relationships outperform everyone else. These knowing firms are the only ones who pinpoint the client development strategy best suited to their clients—and can drive it forward using the right skills at the right time. Everyone else has to guess.

You can assess the strength of your firm’s client relationships through BTI’s in-depth client feedback—and use it to improve client strength and revenue.

You can also see where you stand in the BTI Power Rankings 2019: The Client Relationship Scorecard—to be released August 1, 2019.

MBR

Based on more than 650 in-depth interviews with top legal decision makers conducted between March 2017 and April 2018.

1 Big Bad Boogeyman Adds to 3 Other Nightmares Keeping GCs Up at Night

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I have never heard a top legal decision maker talk about being blindsided in my 30 years of talking to clients—until now.

100s of top legal officers echo this same sentiment and suffer loss of sleep as a result.

Being Blindsided

Top legal decision makers are typically thorough, thoughtful, and forward-looking.  They aren’t comfortable with the unknown—and now, clients say, the chance of being blindsided is lurking around every corner.  

Uncertainty is at an all-time high (as we discussed in our Mid-Year Market Update 2019 Webinar last week); meaning the threat of the unknown is more serious than ever. Problems can pop up anytime and anywhere. Issues are unpredictable—and this is precisely why it causes insomnia for General Counsel.

This is an open invitation for law firms to reach out to their clients to engage in strategic planning, provide systematic risk identification, develop risk assessment tools, and conduct scenario planning sessions. The law firm able to help their clients look around the corner to avoid being blindsided will help clients sleep—and likely get the first call when the unexpected occurs.

Top legal officers tell us being blindsided is only one main source of insomnia—other concerns bring their own set of surprises and consequences. These are all issues clients want to have their preferred law firms in place for:

Cybersecurity/Data Privacy

The state-sponsored Marriott data breach, GDPR, new California regulations, and the intense scrutiny of privacy in the tech industry form the perfect storm making Cybersecurity/Data Privacy the second biggest source of client insomnia. Any breach brings legal issues, regulatory scrutiny, potential Board exposure, and can be quickly followed by securities fraud and class actions.

In short, it’s messy and ugly. Clients believe they won’t really and truly know if they can rely on their law firms until the dreaded moment comes. This is why Cybersecurity/Data Privacy is a top source of insomnia in 3 of the last 4 years.

Clients judge their law firm’s reliability for big things by the little things.  After all, if you take care of the little stuff, there is a better chance you will take care of the big stuff.  This is one of the reasons why small things like slow response to emails and questions, billing surprises, shoddy work, and the lack of informal dialogue have such an out-sized impact on getting the big work.

Regulatory Issues

So many regulations, so many interpretations and reinterpretations.  Top legal decision makers believe they are faced with a hostile regulatory environment where yesterday’s compliance is today’s violations. They see the rules being reinterpreted and reapplied. This results in cost, bad PR, workforce issues, and a host of other time-consuming impacts.  Clients tell us they see so many regulatory questions and potential issues they find it difficult to prioritize, develop a plan, and don’t know where the next question is coming from. With stakes much higher than they have ever been—regulatory issues are a recurring source of client insomnia for the 5th time in 6 years.

Clients value law firms able to offer counselling and access to specialists in their industry or relevant agency. They want a sense of what to worry about and what to do. These will likely be small matters to start—which many firms eschew—but these small high-octane conversations are the magnet attracting the big matters to come.

Workload

Complex needs may be surging, but budgets and headcount are not. The workload is growing as management makes more inquiries than ever. The average legal department has 2 fewer full-time attorneys on their staff than just 2 years ago. Internal staff is shrinking as risk and complexity soars. These diametrically opposed trends make getting the work done a source of insomnia for the 2nd year in a row.

Law firms can jump in and help prioritize the work. Clients love a good secondment—and it embeds you in a client’s culture. There is always the risk clients will steal your prized associate—but the upside is so high—it just might be worth the risk.

Attrition/Staffing

Top legal decision makers are watching key people on their staff retire and be recruited to law firms.  The cycle is now complete—corporate counsel started recruiting law firm partners just after the financial crisis when law firm demand was less robust. Now, law firms are doing the recruiting—the firms want industry experience, client-centric attorneys, and someone who can help teach other partners what it is really like on the inside.

You can help your clients by passing along friends or open positions at clients, offer help in evaluating candidates, and help clients with succession planning. Each of these steps brings the added bonus of befriending the very people who may be hiring you down the road.

Take the chart below, or issues in the chart below, and discuss them with your clients. Go over every item and see where your clients think they stand. You will get an education about how your clients think about their world, and walk away with more trust, more value, and new business. 

MBR

 
 

22% of Clients Bring on New GCs: New Game, New Rules, New Rates

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22% of clients are disrupting the market right now. These are the new GCs. Half of these have been in place for less than 12 months. Another half have been in place 23 months—just enough to get their sea legs. We see 2 big implications for law firms:

  1. This is only the beginning of a trend. The growth rate in retiring baby boomers will increase before it drops—expect a steady stream of new GCs. Plan ahead and develop a standard set of protocols to welcome all new GCs—and build yourself some serious relationships with this untapped source of new business.

  2. Almost every new GC puts out an RFP for legal services somewhere between 18 and 24 months into their tenure. Take control and offer to help write the RFP. Avoid the RFP by introducing yourself and befriending the new GC early on. Help with onboarding and start the conversation about complexity.

Here is what these new GCs are thinking and facing:

Starting When Risk is the Highest it’s Ever Been

The new GCs entire tenure started as the surge in risk and uncertainty hit the market. This is their version of normal. They look at life solely through a high-risk filter—quickly assessing situations, comfortable with intuition combined with data, and are looking for someone to share opinions with. They know their success demands they make decisions and make them quickly.

Comfortable with Complexity

The new GCs dive into complexity head first. They want to sort it out into its component parts and solve the core issues. They want outside counsel who is comfortable dealing with complexity and unequivocal in their approach—and advice.

Total Cost is More Important Than Hourly Cost

New GCs look at the big picture when it comes to cost. Hourly rates don’t mean low cost. These new GCs figure out which firms will deliver and what the total budget will be—the firm with the lowest hourly cost rarely offers the lowest total cost.

Working Smarter

New GCs know they are in the best position to spot redundancy, overlapping communications, and processes where their useful life is over but still in practice. They are diving in and making changes in the work process and communications with one goal—streamline. This ability to improve efficiency is unique to new GCs.

Double Whammy—an Acquired Company

A number of new GCs are stepping into merged companies who just made acquisitions. This dual challenge of being new to 2 companies brings out the best in these new GCs as they focus on integrating people and systems—on top of sorting out risks and legal issues.

You Can’t Get Me If You Don’t Talk to Me

New GCs tell BTI they are downright shocked at how few law firms reach out to them when they initially take the reins. These new GCs have their own agendas. Any law firm who fails to reach out is unintentionally telling new GCs they don’t want to get to know them.

Amazing Coaches

A few law firms step up and not only welcome and say hello to new GCs—they also work to provide a successful onboarding experience. The firms share current priorities, history, back story, and offer counsel on how to be successful. These partners are cherished.

BTI’s exclusive research shows the number of new GCs has doubled from 11% in 2014. As we discuss at the beginning of this post—this trend is on the rise. Use it to your advantage.

MBR

Corporate Counsel Single Out 335 Attorneys with the Best Client Service—By Name

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Corporate counsel point to 335 attorneys—by name—who deliver the best client service. These are the BTI Client Service All-Stars 2019.

Corporate legal decision makers single out each BTI Client Service All-Star—by name and in an unprompted manner. No attorney or firm can self-nominate, self-refer, nor pay to be included in this report. Clients have the final—and only—say.

This year’s BTI Client Service All-Stars lineup is robust. We see return performances as well as new All-Stars who make their debut. They are all bound by a single theme—the ability to stand above the rest. A few of note include:

We are particularly pleased to honor 1 BTI Client Service All-Star:

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H. Rodgin Cohen, Senior Chairman,
Sullivan & Cromwell

Mr. Cohen is named a BTI Client All-Star for an astonishing 16 years.

Only 17 attorneys manage to make the BTI Client Service All-Stars for more than 1 year. These individuals can read and stay ahead of client’s rising and ever-changing expectations:

4 Consecutive Years:        

Edward D. Herlihy, Partner
Wachtell, Lipton, Rosen & Katz

3 Consecutive Years:

Ron Chapman, Jr., Partner
Ogletree Deakins
A. Craig Cleland, Shareholder
Ogletree Deakins
Jonathan M. Moses, Partner
Wachtell, Lipton, Rosen & Katz

2 Consecutive Years:

Soumitra Deka, Counsel
Arnold & Porter
Daniel P. DiNapoli, Partner
Arnold & Porter
Marc O. Williams, Partner
Davis Polk
David E. De Lorenzi, Chair
Gibbons
Elizabeth A. Ising, Partner
Gibson Dunn
Brian J. Lane, Partner
Gibson Dunn
John W. Ursu, Attorney
Greene Espel



Monique A. Cenac, Partner
Jones Walker
Kelly C. Simoneaux, Partner
Jones Walker
Andrew S. Marovitz, Partner
Mayer Brown
Peter J. Covington, Partner
McGuireWoods
William P. Geraghty, Managing Partner
Shook, Hardy & Bacon
Sabastian V. Niles, Partner
Wachtell, Lipton, Rosen & Katz

Super All-Stars—2 Attorneys Named by Multiple Clients This Year:

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William P. Aiken, Shareholder
Chambliss, Bahner & Stophel

Mark Filip, P.C., Partner
Kirkland & Ellis

Cultivating Firmwide Success:
16 firms manage to develop more BTI Client Service All-Stars than other law firms. Please congratulate the following firms with more than 5 All-Stars:

Learn exactly what these attorneys do different from everyone else to stand out with legal decision makers and earn a prestigious spot among the client service elite.

Join us as we congratulate each and every BTI Client Service All-Star for their unmatched client service delivery.

You can download the complimentary copy of the full report here.

MBR

Based on more than 350 interviews conducted between March 20, 2018 and February 8, 2019

22% of GCs Unloved: Out of the Loop

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I’m the last to know and have to drive this thing to close. I don’t get all the facts, and everyone is waiting for me. It’s ass backwards.” VP and GC, Large Telecom Company.

The attorney able to show this GC how to change the dynamics and drive the results they want will earn a client for life. And not just this one client.

22% of all GCs feel like they are behind the 8 ball. They want to be out in front of issues; helping to get things done, or even things done faster, but these top legal decision makers feel stymied by their own organization. These GCs say they are excluded from relevant communications from upper management until the last minute. And then they’re playing catch up to deliver the results management expects. This is the biggest obstacle to getting what they want, and need, accomplished. These GCs tell us they can cope with being under appreciated; it’s being put in the position of bottleneck causing their personal frustration.

Law firms are in the unique position of being able to bring in an experienced partner, former GC, or a GC who is a friend of the firm, to help your client get out in front. Teaching these GCs how to anticipate issues, stay ahead, and add to the process creates lifelong friendships—and business.

This is only 1 of 5 obstacles GCs face in meeting their goals. The remaining 4 are:

Time

Unlike their stymied colleagues, these corporate counsel have more demands than time. They triage, prioritize, and delegate where they can. Ultimately, these decision makers focus on the top or urgent issues. They are master jugglers and are skilled in keeping many balls in the air.

This is 1 reason clients get so frustrated when they have to chase down outside counsel for budgets, updates, or key pieces of information. It creates even less time.

You can immediately help. Set up scheduled days and times where you will provide updates on matters and work for clients. Outline progress against the original scope and proactively notify clients of any changes before the scheduled update.

Resources

Resources come down to people and budget—and there just aren’t enough to go around. Like time scarcity above, this means prioritization and finding tactics to extend the budget.

Law firms are well served offering up AFAs, alternative staffing, secondments, or an occasional extra hand to add to the resource base.

Litigation

The growing complexity of litigation is stealing 10% of GCs psychic energy. Risk is growing to the point where it is all-consuming. Litigation attracts more and new litigation, and regulators. GCs have to stop and thoughtfully respond. The potential combined financial exposure from litigation is so large it has to be managed down—immediately.

Law firms who want to help their clients can offer strategic counsel and planning for these situations—both in the heat of battle and before with litigation prone clients.

Outside Counsel

A small but significant 4% of GCs say outside counsel is their biggest obstacle to getting things done. These GCs say their law firms are working towards cross objectives, don’t deal with uncertainty, and are being served by attorneys with no apparent leader. They make no progress and some law firms impede it.

Law firms holding their clients back probably don’t realize they are the obstacle—but these are the firms who do not ask for feedback and don’t provide timely updates. More formal and informal communication with clients is the number 1 way to ensure you are not your client’s biggest challenge.

Each client faces different obstacles. Your job is to understand which clients have what obstacles if you want to create a continuing stream of new business. You have many vehicles to ask clients about what holds them back, or BTI can ask for you. Your client’s obstacles are your opportunities. All you have to do is ask, and act.

MBR

(Based on more than 350 in-depth interviews with top legal decision makers conducted between September 2018 and January 2019 conducted by The BTI Consulting Group.) 

Clients have 2 big sources of insomnia. Law firms only cause 1.

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Top legal officers are questioning themselves and their strategies. Something they don’t often do. And it’s keeping them up at night. The decision makers are unnerved by their law firms’ behavior—as they are now relying on their outside counsel more than ever before.

Almost 30% of corporate counsel are unnerved because of the following experiences with their primary law firms:

  • Partner turnover—lateral movement is making clients less confident in their firm’s ability to deliver without gaps and turnover. Clients are also concerned about the loss of institutional memory and the additional labor and elapsed time required to bring a new partner up to speed.
     
  • Partner retirements—clients know when key partners at their primary law firms are nearing retirement—but clients believe their firms just passively react to the departures and let things take their course. These clients believe there is no formal plan or thought as to how their matters will be managed going forward. This has the same negative impact as partner turnover.
     
  • Loss of associates—just as clients are getting to know associates working on their cases, these associates seem to disappear. Clients are fully aware of the high associate turnover rate—but believe their firms will be figuring out how to retain their best associates—which, of course, is any associate your client really likes.
     
  • No support—clients are discovering their law firms just want to do the work. These firms have no apparent interest in helping their client think through new issues, initiate and carry on conversations to help clients sort out their thoughts, and engage at a level beyond the scope of work. Clients believe this type of dialogue is not only helpful but also crucial to understanding client goals and sensitivities.
     
  • No team—many attorneys are doing the work, and clients don’t see 1 single attorney as being in charge or accountable. Clients perceive the finger pointing among partners when things don’t go according to plan as evasiveness.
     
  • Inconsistency—clients experience superstars, mediocrity, and embarrassments all from the same firm. These corporate counsel openly worry the performance will sink to the lowest level delivered.

Virtually each of these behaviors is fixable and unintended—but are on their way to ruining a client relationship just as clients have cut their law firm rosters to the smallest number ever and are ramping up spending with the firms who remain.

The 2nd biggest source of GC insomnia is making sure the work gets done. And done right. Clients are not convinced their law firms will deliver. GCs have stopped adding to staff and are experiencing attrition within their ranks. The search for the right formula prevents 13% from sleeping soundly.

General Counsel report litigation, increased transaction activity, data privacy, compliance, and cost control round out the sources of insomnia—but pale in comparison to the 2 above.

Every law firm and every partner can help clients sleep better. Be the partner who always delivers, never leaves a seed of doubt, and is proud to be accountable—even when things go wrong. Offer secondments and thoughts on how clients can prioritize their workload. Maybe even suggest a few strategies where you can help get things done. You can only be this partner if you are talking to your client. And, these ongoing conversations will help you, and your client, get the best sleep of all while others toss and turn.

MBR

(Based on BTI research conducted on a rolling basis between March 2017 and February 2018. BTI conducted more than 350 independent, individual interviews with CLOs and General Counsel at companies with $1 billion in revenue or more, each of whom responded.)

Clients Single Out 326 Attorneys for Superior Client Service

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Corporate counsel point to 335 attorneys—by name—who deliver the best client service. These are the BTI Client Service All-Stars 2019. Corporate legal decision makers single out each BTI Client Service All-Star—by name and in an unprompted manner. No attorney or firm can self-nominate, self-refer, nor pay to be included in this report. Clients have the final—and only—say.

This year’s BTI Client Service All-Stars lineup is robust. We see return performances as well as new All-Stars who make their debut. They are all bound by a single theme—the ability to stand above the rest. A few of note include:

We are particularly pleased to honor 1 BTI Client Service All-Star:

H. Rodgin Cohen, Senior Chairman
Sullivan & Cromwell

Mr. Cohen is named a BTI Client Service All-Star for an astonishing 16 years.

Only 17 attorneys manage to make The BTI Client Service All-Stars for more than 1 year. These individuals can read and stay ahead of client’s rising and ever-changing expectations:

5 Consecutive Years
Tracy E. Kern, Partner
Jones Walker
E. Joshua Rosenkranz, Partner
Orrick

4 Years
John T. Baecher, Partner
Norton Rose Fulbright
Stephen I. Glover, Partner
Gibson Dunn
Kirk T. May, Founding Shareholder
German May

3 Years
Edward D. Herlihy, Partner
Wachtell, Lipton, Rosen & Katz
Gregg M. Lemley, Shareholder
Ogletree Deakins
Randi C. Lesnick, Partner
Jones Day
Jennifer R. Mewaldt, Partner
Faegre Baker Daniels

 2 Consecutive Years
Ron Chapman, Jr., Shareholder
Ogletree Deakins
A. Craig Cleland, Shareholder
Ogletree Deakins
Gregory Carl Cook, Partner
Balch & Bingham
William Donovan, Jr., Partner
Cooley
Paula J. Morency, Partner
Schiff Hardin
Jonathan M. Moses, Partner
Wachtell, Lipton, Rosen & Katz
Richard R. Patch, Partner
Coblentz Patch Duffy & Bass
Rick Richmond, Managing Partner, Los Angeles
Jenner & Block

 

Super All-Stars—Attorneys Named by Multiple Clients This Year:

Anthony Alden, Partner
Quinn Emanuel Urquhart & Sullivan
Alan W. Beloff, Senior Counsel
Morgan Lewis
David K. Callahan, Partner
Latham & Watkins

Jonathan L. Corsico, Partner
Gibson Dunn
Sean C. Feller, Partner
Gibson Dunn
Frank Layson, Partner
DLA Piper

Cultivating Firmwide Success
Only 13 law firms are home to 5 or more BTI Client Service All-Stars. These firms account for 92 BTI Client Service All-Stars—suggesting a culture of client service permeates each organization. These 13 firms are:

Jones Day 16 – a new record
Gibson Dunn – 11
DLA Piper – 9
Arnold & Porter – 7
Latham & Watkins – 7
Ogletree Deakins – 6
Wachtell, Lipton, Rosen & Katz – 6

Cooley – 5
Morgan Lewis – 5
Polsinelli – 5
Seyfarth Shaw - 5
Sullivan & Cromwell – 5
Williams & Connolly – 5

8 of these 13 law firms are also singled out by clients in the BTI Client Service A-Team 2018, appearing on this year’s BTI Client Service 30.

We congratulate each and every BTI Client Service All-Star. They continue to exceed clients’ ever-rising expectations, as measured by the most demanding clients. Click here to see every attorney we celebrate for client service excellence as measured by clients—the sole and final judge.

MBR