Stephen J. Lubben
The next article is Professor Stephen J. Lubben's
highly-acclaimed empirical study on the market for corporate
bankruptcy counsel. In Choosing Corporate Bankruptcy
Counsel, the author begins with a brief discussion of the law
governing the retention of counsel in chapter 11 cases. He also
reviews a series of periodic studies examining the cost of
bankruptcy since the enactment of the Bankruptcy Code in 1978.
Next, the author analyzes data derived from a sample of 275 large
chapter 11 cases spanning from 2001 through early 2005. He notes
that while three law firms in particular lead the market with
regard to very large corporate debtors—especially in cases filed in
the Southern District of New York and the District of Delaware—the
market remains very competitive and largely fragmented. The study
then concludes with a discussion on the factors that influence the
retention of the market's "big three" law firms, taking into
consideration the size of the debtor's assets and employees, the
managerial prestige associated with hiring one of the big three,
and the complexity of the case. In all, with the recent string of
high-profile corporate bankruptcies, the author hopes to provide a
foundation for future research on the factors driving the market
for bankruptcy counsel.