Maybe associates clamoring for yet another pay raise have a point. Maybe $160,000 is not enough.
Because, if certain Democrats get their way, a new surtax will be imposed that will hit even first-year associates at most large law firms. Under a tax plan proposed by House Ways and Means Committee Chairman Charles Rangel (D-NY), a 4 percent surtax will hit single earners with incomes over $150,000, or married couples with incomes over $200,000. For incomes above $500,000, which are increasingly common in Biglaw, the surtax would rise to 4.6 percent.
So, readers, what do you think? Many lawyers harbor progressive political views. Are you willing to put your money where your mouth is, and support politicians who will raise taxes on people like you? Update: As noted by several commenters, the full plan has several other provisions. For example, it would lower the top corporate tax rate to 30.5% from 35%, and it would scrap the alternative minimum tax (AMT). For more details, see here.
Feel free to vote in our reader poll, after the jump.
A Denver lawyer has filed a complaint claiming the chief judge of the Colorado federal courts threatened to call authorities when she confronted him about parking in a handicapped space.
The lawyer, Jeanne Elliott, was paralyzed in 1986 when she was shot by an angry litigant. She told KUSA in Denver that she waited in her wheelchair behind the illegally parked SUV outside a Walgreens. Judge Edward Nottingham arrived and threatened to call the U.S. Marshals service when she didn’t move, according to her grievance (PDF) filed with the Denver-based 10th U.S. Circuit Court of Appeals. He later called 911.
* Dems to propose new surveillance bill? [Newsweek]
* Only a Garrison Keillor stalker would call it “transcendental love.” [CNN]
* Pearl drops lawsuit against terrorists. [MSNBC]
* Law firm World Series. [WSJ Law Blog]
* Today’s stupid crimes from Court TV. [CourtTV]
Maximilian Cordero believes the second time is a charm — with respect to (1) a gender and (2) suing rich guys. From DealBreaker:
In the grand tradition of trying to turn the (real or imaginary) sexual assault you suffered at the hands of a creepy old guy into stocks and bonds, everyone knows you don’t start at the top of the food chain. You get a few starter suits under your belt first, THEN you go to the top. Got to walk before you can run, got to allege “he put his hand on my knee and I didn’t like it” before you allege “he jerked off into a towel while I stood there awkwardly, and I think there might’ve been a purple vibrator in there, too” (those are just for instances).
A few years ago, Maximilia née Maximilian Cordero filed a $10 million lawsuit that accused her former lawyer, Glen Gentile, of statutory rape and endangering the welfare of a minor 2002, when she was “under the age of 17” (representing Cordero was her new—at the time—boyfriend/attorney, William Unroch).
Unfortunately, the case got thrown out when the court informed Cordero (yes, it informed her) that in 2002, she was over the age of 17, and, actually almost 19. For her part, Cordero said that she was “shocked” to find out how old she was.
A former Legal Aid Society lawyer pleaded guilty Wednesday to illegally using a hidden videocamera to spy on female co-workers as they changed clothes in their offices.
Peter Barta, 32, of Queens, used a camera hidden in a clock to videotape five co-workers in the public defense agency’s Manhattan offices, recording at least one woman with her breasts and buttocks bared….
Barta, 32, pleaded guilty to one count of unlawful surveillance, a felony, in exchange for a conditional discharge. The case will be dismissed and sealed after he completes a year of counseling.
In the comments to yesterday’s post about Heller Ehrman, there was some debate about how grave the firm’s current problems are. Last night, more bad news broke, from Legal Pad (via the super-vigilant Blogonaut):
Another day, another Heller lawyer gone. Corporate partner Kyle Guse has jumped from the firm’s Silicon Valley office to McDermott Will & Emery. Guse told Legal Pad that the current rumblings at the roughly 700-lawyer Heller had nothing to do with his decision to leave….
Guse represents biotech and tech companies and said he’ll be bringing his clients with him to the new firm.
So tell us, loyal reader(s), what is going on at Heller? Are more partners going to leave? Will captain Matt Larrabee guide the firm to safety?
In case you haven’t noticed, we have thing for law librarians around here. We’ve given them their own category tag, and we previously held a law librarian hotties contest (male nominees here, female nominees here, and winners here).
In our recent New York Observer column about Cadwalader, we also tried to include a shout-out to their super-cool library staff, based on this New York Times article. It ended up getting cut in the editing process, but we thought we’d mention it here. From a tipster:
The “librarian at a law firm” who was profiled [in the Times] works at Cadwalader. I’d be curious to hear from the ATL posters which other Vault firms feature these alleged “hipster librarians.”
So, any takers? Having a team of crack librarians, ready to go to the ends of the earth to find some obscure treatise or track down elusive legislative history, is one of the nice perks of Biglaw life — as well as life as a law professor or government lawyer, too.
And you might end up getting more than just USCCAN volumes — you could end up finding love. Justice Samuel A. Alito, you may recall, ended up marrying his office’s law librarian. How neat is that?
If you’d like to praise (or complain about) the library staff where you work, please feel free to do so in the comments. Thanks. A Hipper Crowd of Shushers [New York Times] Jeffrey Howard Buckley [jehobu.com]
As noted recently in The American Lawyer, the credit market crisis isn’t good news for firms with big securitization / structured finance practices. We previously discussed the topic here.
One firm mentioned in Ben Hallman and Aruna Viswanatha’s AmLaw article was McKee Nelson. Hallman and Viswanatha wrote: “[S]maller niche firms are more vulnerable [to credit market problems]. About half of McKee Nelson’s 200 lawyers, and almost forty percent of Thacher Proffitt & Wood’s 350 attorneys, work in structured finance.”
Today we received this tip about McKee Nelson:
Name partners Bill McKee and Will Nelson had a meeting with all associates and counsel on Monday afternoon. While the mantra “we are not going to have any layoffs” was repeated over and over, lawyers were encouraged to take sabbaticals, consider changing practice groups to tax or litigation, or “self-identify” to take a “change of venue” to another firm or field. They announced that each associate and counsel would meet individually with hiring partners in New York and DC.
At one such meeting, held yesterday, a first-year was told that, while there was no timeline required, the firm would help the associate find another job and was given the name and web address of a recommended recruiter to work with.
Sounds like a layoff to me! Oddly, despite encouraging these “changes of venue” the firm still intends to follow industry standard for bonuses for this year (whatever that means).
We reached out to the firm for comment. Founding partner William Nelson responded promptly to our inquiry:
The difference between a layoff and what we are doing is that no one is losing their job. As a result of the fundamental disruption in the credit markets, we do not have enough work to keep all of our structured finance lawyers fully busy. We want to keep these lawyers productively engaged while the market sorts itself out.
To do that, we have given people options that include moving into other areas of our practice where we have significant need for additional lawyers, possible secondment to clients, or taking sabbaticals (which many associates have requested in the past). In addition, we asked any lawyers who already are planning a near-term career change or change of venue (meaning moving to a different firm or in-house) to please let us know and we would help them make that move.
We thank Mr. Nelson for his response. While the credit slowdown and its consequences for law firms are certainly regrettable, McKee Nelson is taking reasonable and sensible steps to address a difficult situation. Nobody is being forced to leave the firm; people are just being encouraged to consider all their options.
A special request: please go easy on McKee Nelson in the comments. The firm should be commended for (1) its openness and transparency with respect to its current situation, and (2) responding to us so promptly and in such detail. We would like firms to feel “incentivized” to come forward with such information and to cooperate with ATL’s inquiries. Thanks.
P.S. Please note that our filing of this post under the Layoffs category should not be construed as a statement that layoffs are taking place. We use this tag rather liberally, applying it to any post that arguably falls within the penumbra of layoff talk (which may or may not be founded). Earlier: More Woe Ahead for Private Equity and Mortgage-Backed Securities Lawyers?
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: firstname.lastname@example.org.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at email@example.com or firstname.lastname@example.org. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
Professor Joel P. Trachtman has developed a unique, practical guide to help lawyers analyze, argue, and write effectively.
The Tools of Argument: How the Best Lawyers Think, Argue, and Win is a highly readable 200-page book, available for about $10 in paperback or e-book. Chapters focus on foundational principles in legal argument: procedure, interpretation of contracts and statutes, use of evidence, and more. The material covered is taught only implicitly in law school. Yet, when up-and-coming attorneys master these straightforward tools, they will think and argue like the best lawyers.
For most attorneys, time spent managing the books is a necessary evil at best. Yet it is undeniably a crucial aspect of running a successful practice. With that in mind, we invite you to view or download a free webinar by Above the Law and our friends at Clio to learn how to better manage your finances.
Take this opportunity to learn what it takes to streamline your accounting and get the most out of your time. The webinar agenda:
● The basics of accounting for lawyers.
● How legal accounting differs from regular accounting.
● Report and reconciliation issues surrounding trust accounts.
● How to pick and integrate the best accounting tools for your practice.
● Steps to prepare your tax return for your firm’s income.
Do not miss this crucial chance to optimize your accounting practices. Save time and get back to billing!