By David Bargman
A month into the lockdown, many lawyers are wondering how coronavirus will affect the legal profession and how lawyers will fit into the post-coronavirus economy. If your practice seen a downturn, now is a good time to think about the horizon. Some of the changes brought by this will be hard to predict. How deep will the recession be and how long will it last? Will the lock down and quarantining at home accelerate law firms' increasing openness to telecommuting? Will employees who were anxious to take a change use the opportunity of working from home to begin new ventures? Time will tell.
Other changes, however, are predictable, even now. In addition to the obvious need for Bankruptcy and restructuring lawyers, the downturn will require other specialties. Discomfort and uncertainty are the nectar of the legal profession. In addition to the obvious need for Bankruptcy and restructuring lawyers, other specialties will be in demand. Firms with strong employment, insurance, litigation, private equity, and banking practices will also play significant roles in the revival of a severely damaged global economy.
Litigation
Class actions for price gauging and other consumer class actions are under way and more are sure to follow. In addition there will be an abundance of bank loans, commercial contracts, and real estate leases to work out.
Employment
Aside from discrimination claims based illegal discrimination in terminations, lay-offs, or payment deferrals, both New York and the Federal Government have provided relief to unemployed workers and small businesses suffering due to COVID-19. Both will require legal guidance or litigation. All the while, lawyers focus on following the advice they are giving to clients.
Government Assistance and Insurance Recovery
New York, New Jersey, Massachusetts, and Ohio are considering legislation that would obligate Insurers to Pay COVID-19 business interruption claims – even when the policy contains virus exclusion.Not surprisingly, these bills have been met swiftly with a swift backlash from the insurance industry and its lawyers, claiming that the bills set a dangerous precedent by requiring insurers to re-write or ignore policy provisions in policies that have been approved by state regulators such as force majeure. Insurers also view these bills violating the Contracts Clause.
In response to the pandemic, the federal and state governments have launched several initiatives to address the economic hardship suffered by businesses. There are programs to pay off existing SBA Loans and to acquire new ones, to support security related businesses, payroll protection to keep folks working, mortgage relief and relief for small business bankruptcies.
Mergers and Acquisitions
One group of lawyers who don’t benefit from downturns is dealmakers. Lawyers representing sellers in existing deals want to go forward, while buyers delay or pull out altogether.
This is the short list. Tax lawyers, Divorce lawyers, and Labor Tenant lawyers may find their practices benefit from the crisis even as they wish for its rapid demise.
David Bargman, Esq. is the President of Baum Stevens Bargman