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Lexington, KY - From recent mergers to the increasing use of technology to the ever-changing economic landscape, the practice of law in central Kentucky has experienced dramatic change in recent years. Another major area of fallout from the recession is the wave of former and current employees suing over wrongful discharge and Fair Labor Standards Act matters. Both transactions should have very positive impacts on Kentucky's economy. Mark Burton, Wyatt, Tarrant & Combs At Wyatt, we are currently seeing a very strong litigation practice, much of it with some connection to the economic difficulties of the last two years. Our work in the creditors' rights area continues to grow as our clients wrestle with their customers and suppliers over adjustments to the terms of agreements. We also represent numerous banks of all types — money center, regional and community — and all are seeing an increase in lender liability or fiduciary-type counter claims — as borrowers who can't meet their loan obligations attempt to place the blame on someone else. As the economy begins to recover, I expect we will see banks beginning to make additional money available, and the real estate and construction industries will show signs of improvement. While I do not expect billable hours to disappear any time soon, I do think we will see more flat fees, fixed fees, and blended rates than we have seen in the past, as clients search for ways to have more predictability in their budgets for legal services. subsidiary of one of the largest trading companies in the world) and Nucor Corporation (one of the largest steel producers in the world); and the purchase by PPL Corporation of E.ON's power and gas operations in the U.S., including KU and LG&E for $7.6 billion. I also expect there will be a continuing trend towards alternative fee arrangements. - Chauncey Curtz, Dinsmore & Shohl I expect the consolidation of law firms we have seen in Central Kentucky over the past few years will continue as more clients move towards the "one stop shopping" model for their legal services. The GCs would like to move away from paying close to $1,000 per hour for attorney fees, while still receiving a high quality work product. Looking at our practice, we have experienced increased interest from large corporations which have traditionally sent their work to law firms in New York, D.C., and Chicago. - J. Efficiences of scale and breadth of expertise will be advantages that will give larger firms a competitive edge over smaller firms. For the last couple of years it has been difficult to complete any corporate deals because valuations have been so fluid. We are embracing this trend and working together with our clients to develop creative fee structures that better align the firm's and our client's interests.  Joseph Terry, Dinsmore & Shohl As the economy improves, we will continue to see consolidation in the Lexington market; however, it may likely be "consolidation" through the acquisition of groups of partners or practice groups, not through law firm mergers. On the corporate side, deal flow is beginning to improve. We have regular calls with the GCs of these companies where we discuss our capabilities, they discuss their needs and we see if there's a match. We asked professionals working in central Kentucky legal industry to share their thoughts on what the next two years has in store for their business. Even though we are starting to see signs of real improvement in the economy, we expect the fallout from the recession to extend into the coming two years. As you might expect, the first real estate projects that are breaking ground are projects for institutions — for example we have a $500 million hospital project that has been keeping a number of our real estate and construction lawyers busy. However, over the past several months we have served as counsel on two major transactions — the formation of a joint venture between Mitsui & Co. Improvements in consumer confidence and the market in general will also likely drive investment over the next few quarters. (USA) (the U.S. In addition, economic corrections continue in the equine industry, and we find ourselves representing banks, as well as farms, in dealing with the recession's impact on the equine industry.   On the business side, in addition to handling a number of real estate loan workouts, we are beginning to see more real estate projects coming back on line as financing has solidified. Another trend we are seeing is more interest in alternative fee proposals that aren't based on the billable hour. When individuals are hurting for money, or have been laid off, they sometimes will turn to the courts to help them financially. While the demand for legal services should increase as the economy improves, there will continue to be pressure for

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