A new Texas Lawbook study of legal industry finances in Texas shows that elite, wealthy corporate law firms – most of them based outside of the state – are achieving enormous financial success by stealing the best lawyers and the highest paying business clients away from large, full service legacy Texas law firms.

At the same time, dozens of national and regional law firms, including many that focus on upper middle market corporate clients in the healthcare, manufacturing, retail, technology and transportation sectors, have expanded into Texas and captured more than $1 billion in legal fees from long-time indigenous law firms in 2015 alone.

As a result, many old-line traditional Texas law firms that once dominated the state are fighting for survival as their market shares plummet. They are almost helpless as their best young talent flees to wealthier competition and long-time clients shift their allegiances to the elite firms.

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“This shift happened in other parts of the country a couple decades ago, but skipped over Texas because the state’s legal market was considered insulated from outside intruders,” said John Wilmouth, a senior adviser with Citi’s private banking law firm group.

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