Long arm of the law: as profit margins for basic work shrink, law firms find ways to extend their lobbying clout.

• Author: Duckwall, Jane
• Position: Statewide: BUSINESS NEWS FROM ACROSS NORTH CAROLINA

When Google Inc. convened a reception in Charlotte in late January to discuss plans for broadband service in North Carolina, the tech giant relied on one of the state's largest law firms to help attract business and political leaders to the event, which was closed to the public and press. The work by Moore & Van Allen PLLC, which involved wining and dining at Charlotte's The Liberty restaurant, showed how the breadth of legal services offered by bigger firms now extends far beyond briefs, litigation and negotiations. One thing that hasn't changed is the preference of lawyers and lobbyists for discretion on behalf of their clients. Walter Price, co-head of Moore & Van Allen Public Affairs, wouldn't discuss the Google reception, which came two and a half months after firm member Robert Rust filed Google Fiber North Carolina LLC's incorporation with the state. "We find an advantage in providing not only government relations, but also communications and event-management services to meet our clients' needs," Price said in a statement.

Moore & Van Allen isn't alone in broadening its base. Many of North Carolina's major firms are responding to changing legal-industry' economics and increased demand for lobbying, now a growth business because more companies, trade groups and nonprofits want their voices heard in the capital, says Linda Millsaps, executive director of the Raleigh-based nonpartisan N.C. Center for Public Policy Research. Money spent on lobbying doubled to $47.4 million between 2009 and 2013, according to statistics compiled by N.C. Secretary of State Elaine Marshall. That's just a snippet of total corporate spending on lobbying, and it may not show the bigger picture of how much companies or institutions pay law firms for federal or multistate lobbying, according to Bernard Burk, an assistant professor at the UNC School of Law in Chapel Hill who has studied law-firm finances.

For many firms, it's more than just lobbying. Changing technologies and reduced profit margins in standard legal work are prompting firms to develop other affiliated businesses, including business consulting and real-estate appraisals, Burk says. Clients are pickier about what they're willing to pay for, often seeking to negotiate rates or set up alternative-fee arrangements, a trend that gained momentum during the 2007-09 recession. "The last seven years or so have been exceptionally hard on the profession," he says. Margins for lobbying and other...