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My career is short enough to say I haven't lost any business to a photographer, but I can see it happerning eventually in some situation. I'm sorry that happened to you , and perhaps it could become more encroaching on the oil portraiture market if photoshop and printing wants to "replicate" us, but I think too one could just see that those Law people are just dealing with the tough economic times we're in and hiring some photographer fixes a painful $ situation.
I would be curious if what this photographer hypes is what he delivers. Also, when budgets come back, I would think people would rather pay for the real thing (an actual painting) than a fake thing ( a photo that pretends to be a painting)
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