Re: 1) Because it is difficult to tell whether your lawyer did a bad job or whether you just had a bad case, branding and signaling becomes tremendously important. It is that branding and signaling that makes companies keep going to firms that hire primarily from the top schools, even when there is nothing, legally, that prevents them from taking it to firms that have more diverse hiring standards.
Re: 2) The adversarial nature of law means that there is an arms race for the smartest people. While a lot of even high-end legal work can be very routine and boring, some of it can be very complex. That 10% of legal work that requires out-thinking the opposing counsel can have major repercussions for companies, and as such companies are willing to spend the money to ensure that their lawyers are smarter (at least on paper) than the opposing party's lawyers.
This. Agree that these are the primary factors in the insane legal costs for high-value clients (corporations and high-net worth individuals). Also agree that for most folks, it is possible to find a good lawyer to do a will for under $500, an amicable divorce for under $800, or do all the filing to launch a business for under $400.
Re: 2) The adversarial nature of law means that there is an arms race for the smartest people. While a lot of even high-end legal work can be very routine and boring, some of it can be very complex. That 10% of legal work that requires out-thinking the opposing counsel can have major repercussions for companies, and as such companies are willing to spend the money to ensure that their lawyers are smarter (at least on paper) than the opposing party's lawyers.
This. Agree that these are the primary factors in the insane legal costs for high-value clients (corporations and high-net worth individuals). Also agree that for most folks, it is possible to find a good lawyer to do a will for under $500, an amicable divorce for under $800, or do all the filing to launch a business for under $400.