BigLaw Rate Increases Creating Client Churn Opportunity for Mid-Law and Challengers

Law360 Pulse first quarter data (reported July 24) shows large US law firms averaging 12.6% revenue growth in 2025, with billing rates up significantly across BigLaw. Industry observers note that at this rate of increase, mid-sized and challenger firms are seeing a genuine panel opportunity: some clients are actively reassessing whether BigLaw rates are justified for work that does not require BigLaw brand. The client churn dynamic is not new, but the scale of the rate increase cycle — with firms like Milbank setting associate salaries at $235K for first years and passing cost through to clients — is accelerating the reassessment. For BD teams at non-BigLaw firms, this is the most favorable client acquisition environment in several years: rate-sensitive clients who have been on BigLaw panels for relationship reasons are now running the economics.