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      January 23, 2017

      With Cowboys season over and a good weather forecast, I decided to cross some home maintenance off my list on Sunday. First on the agenda? We had some cracks in the concrete walkways around our house that needed to be patched before they got worse and turned into a bigger problem. My wife had suggested I hire someone to tackle the chore, afraid that I would cause some s...

  • How Will The Drop In Oil Prices Impact The Legal Market?

    What does the drop in oil prices mean to the Texas legal market? The Texas Lawyer tackled this question recently in 2 separate interviews with Tim Shelby a Partner with AZA in Houston and Lydia Protopapas a Partner with Winston Strawn in Houston.

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    The drop in oil prices will lead to a decrease in drilling, which will be followed by a drop in production. With less drilling activity you will have a diminished demand for oilfield services, tools and equipment.

    Litigation

    Litigation is going to increase significantly. Specifically litigation related to contracts on oil field equipment and litigation related to joint ventures that are no longer profitable. The most interesting thing that Shelby said was that much of this litigation would go to law firms with more reasonable bill rates, where clients get strong value for their budget. He sees energy litigation spiking in the 2nd half of 2015 and staying strong through 2017.

    Bankruptcy

    With the drop in prices E&P companies will be faced with lower valuations on their reserves, which will impact their borrowing bases. This change in borrowing base will force E&P companies to restructure. With the decrease in revenues for oil field service companies they will also be forced to restructure existing debts or liquidate assets to generate cash. Whether it is through formal bankruptcy proceedings or through out of court restructurings Bankruptcy attorneys will see an increased demand for services.

    Firms should consider acquiring talented bankruptcy attorneys and energy litigators now, while their demand is still low. In addition, firms should consider relaxing their portable business requirements for lateral energy litigation partners with the expectation that books stand a chance to significantly increase in value over the next 18 months.

    About
    Rahul D. Yodh is a Principal of Link Legal Search Group, a boutique legal search firm that provides lateral attorney recruitment and contract attorney services to law firms nationwide. For more information on Link Legal Search Group, please visit www.linklegalsearch.com