Boutique law firm finding strength in small numbers

San Antonio Business Journal
October, 2004

Both Marc Gravely and Matthew R. Pearson agree that it is not the sexiest of law issues; it is, however, one that can be quite costly. The issue is mold. True, there have been many stories about homeowners who have found themselves at the mercy of this dark fungus.

But Gravely and Pearson, the principals of local law firm Gravely & Pearson LLP, say little attention has been paid to another class of victims: commercial building owners.

The two attorneys say, like homeowners, businesses also find that when it comes to mold, insurance coverage is often nowhere to be found.

Says Pearson: “The most common response that business owners tell us, ‘Our insurance (carrier) said we weren’t covered.’ And they have left it at that. The lack of consumer knowledge on this issue is staggering.”

Fine print

But neither Pearson nor Gravely are surprised that many building owners are in the dark in terms of exactly what their insurance covers.

“I’ve yet to meet anyone that has read their policy — be it residential or commercial — from cover to cover,” says Pearson. “Most people, when they sign up for a policy, they make sure their name and their address are correct, and they see what the coverage limit is.”

Adds Gravely about the prospect of reading an entire policy: “It would be about as painful as having to read — I’m not sure what. Maybe James Joyce’s ‘Ulysses.’”

This lack of knowledge results in building owners who are hesitant to, as Gravely describes it, “put the insurance company’s feet to the fire” in those cases where they might well be covered.

Insurance litigation, however, is only one area of specialization for Gravely & Pearson.

The roots of the firm go back about 12 years, when the future partners were students at St. Mary’s University School of Law. Upon graduation, each opted to join larger law firms.

But both attorneys eventually found themselves wanting to trade their places with the bigger companies for the flexibility of a smaller practice. In February of 2003, Gravely & Pearson officially opened its doors in downtown San Antonio. The firm specializes in commercial, civil trial and appellate litigation in both state and federal courts.

For Pearson, the decision to go out on his own was nothing short of crazy at the time. Indeed, when he joined forces with Gravely, his wife Maryanna was pregnant with their second child — not a good time to try and make a go of it with a small law practice, he admits.

Small is better

Today, Pearson is glad that he and his partner took the gamble.

“We have the independence and flexibility to make decisions quickly,” he says.

That includes having the freedom to work with clients who may not otherwise have the wherewithal to hire an attorney. The size of their firm allows Gravely and Pearson to work on a flexible fee schedule.

Some clients are charged hourly. But the lawyers also work on a contingency-fee basis, and have even worked out a barter system with some clients.

In recent years, many of the national firms have started to set up shop in San Antonio. Meanwhile, some of the city’s smaller firms have teamed up to create larger practices.

Gravely & Pearson, however, have no plans to change their course. The two take pride in being what many refer to as a boutique law firm.

“We want to stay lean and mean,” Pearson says.

“This is a relationship business,” Gravely continues. “Most people do business with a lawyer, not the firm.”

And in San Antonio, a town where the majority of enterprise is conducted by small-business owners, boutique firms can thrive.

“The boutique firms are going to be over and above everybody when it comes to the smaller clients,” says Jean Rowan, owner of locally based marketing consulting firm The BottomLine.

True, today’s marketplace does have a need for the larger, multi-disciplinary firms, she adds, but there is also a huge need for the boutique firms that specialize in given fields.

“The boutique firms do very well here,” Rowan says.

Education

Asked where they see their firm headed over the next couple of years, Gravely and Pearson explain that success is not about head count.

“Our goal is not to be at a set number of attorneys,” says Gravely. “We want to be able to service our clients, make recoveries for them. As we add clients, we’ll add attorneys.”

Both also remain busy outside of the office. Gravely, for example, frequently lectures on construction and insurance litigation matters.

“Building owners have to become more educated,” he says. “No one is going to watch your back. You have to take the bull by the horns.”

Building owners, in fact, may be more vulnerable to water-damage issues like mold than single-family homeowners, industry experts contend.

“Building owners can check for things like roof leaks, but there are other things that they don’t have control over,” says Tomi Sue Beecham, who is the senior property manager for major retail center The Forum at Olympia Parkway. “Tenants may have a leaking sink they don’t report, or they may over-water their plants. These things are out of the landlord’s control.”

Landlords, therefore, have to be diligent about taking care of water damage and other maintenance problems before they become more costly issues, says Beecham, who is also an active member of the Building Owners and Managers Association (BOMA).

“You need to cover your assets,” adds Beecham. “Monthly inspections of such things as water heaters and water coolers can help you find the potential sources of water damage in a timely manner. Landlords and property managers need to try and get to the bottom of the problem themselves.”

And for the times when that may not be possible, Gravely & Pearson will be around.

“Practicing law is hard work; you put in a lot of long hours,” says Pearson. “But I have fun practicing law with Marc (Gravely). I don’t treat it as something I have to do. It’s something I like to do.”