Archive for October 2008

Orrick Herrington Sutcliffe LLP Above the Law blog.JPGWhen we kicked off our associate bonus speculation, we mentioned that Orrick, Herrington & Sutcliffe had already locked themselves into a 2008 bonus structure. We wondered if Orrick might rethink their bonuses in light of the current state of the economy. Morgan Lewis has already announced that they will not be making bonus decisions until 2009, when they hope to have a better read on the economy.

Today, Orrick assured us that the firm would not look to change their bonus plan. A firm spokesperson put the issue succinctly:

We are committed to using the previously announced bonus schedule.

This year’s bonuses are secured, but Orrick is still considering a much longer term change: ending the lockstep structure of associate salary.

Orrick chairman Ralph Baxter has spoken about this issue before. In an article for the American Lawyer this summer, Baxter pointed out the value of the current, lockstep system. But he also said:

Given the changing nature of the law practice, the changing expectations of clients, the changing outlook of Generation Y, law firms would be remiss if they did not re-examine the associate model.

We understand that Baxter has been cautiously talking to people and gauging interest in this idea.

But it is not this day. More after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Orrick Stands Behind Bonus Structure”

Non-Sequiturs: 10.31.08

Wendy Savage hot lawyer.JPG* Wendy Savage (pictured) is turning into Boston’s version of Joe the Plumber. [f/k/a]

* Samuel “Pyro” Pontier has finally been disbarred. [Legal Blog Watch]

* The law lags behind science. Especially weird science. [Drug and Device Law]

* Sarah Palin is sure the First Amendment applies to her. She’s not so sure about whether or not reporters should be protected though. [WSJ Law Blog]

* “Basically Kenny, you’re Keanu Reeves.” [Popsquire]

Thelen LLP new logo.jpgThe Recorder has published the people who will be in charge of winding down operations at Thelen:

The three members of Thelen’s dissolution committee are David Graybeal, Douglas Davidson and Thomas Hill. The firm has also hired as outside counsel Peter Gilhuly, the Latham & Watkins bankruptcy partner who advised Brobeck, Phleger & Harrison on its dissolution half a decade ago.

We already know that some Thelen people have found a new home. It’s been widely published that Nixon Peabody has sent offer letters to 60 former Thelen partners and associates.

But all of those offer letters were sent to attorneys in Thelen’s Manhattan office. San Francisco associates haven’t yet been picked up in droves. In fact, the New York focus of the dissolution committee members is causing some consternation with other partners at the firm:

Some former Thelen partners voiced frustration over Hill’s inclusion as a member of the wind-down committee.

Hill was in a position of “running the numbers” in his former role, one former Thelen lawyer said, speaking on condition of anonymity. “You would think that would be a reason to keep him off the committee.” People were not happy with the way Hill ran the office, the lawyer said, citing complaints that he didn’t consider other’s ideas and generally did not communicate.

Readers have cited Thelen’s expansion beyond their traditional San Francisco roots as part of the problem. Now, a cadre of non-San Francisco based partners will be overseeing the end.

Four Attorneys to Guide Thelen’s Demise [Law.com]

Earlier: Thelen Officially Dissolves

Powell Goldstein LLP Powell Goldstein Frazer Murphy.jpgWe reported earlier that Powell Goldstein is set to be acquired by Bryan Cave. We’ve been told to expect an official announcement from Bryan Cave on Monday.

PoGo has still not directly responded to ATL about the rumors that a number of associates, staff, and partners could be on their way out of the door. But we understand that they have sent around an internal email addressing some concerns in light of the merger information. A tipster tells us that the email offered the following clarifications:

1) Everyone has a job. This is a specific term of the deal.

2) BC wants to expand the Atlanta office. …

3) We have no problems at all with our finances. Credit is strong, bank relationships are strong, etc.

We have not gotten our hands on the merger agreement between PoGo and Bryan Cave. But the “promise” that every job is secured is encouraging. The email does not speak to our previous reporting that PoGo’s banks threatened to pull their credit line if a merger was not reached. But regardless of what could have happened, the firm’s contention that they are in a strong financial position is certainly worth noting.

The Chairman’s conference call after the jump.

double red triangle arrows Continue reading “Update: Powell Goldstein’s Internal Response to Bryan Cave Acquisition”

dont be an asshole.JPGYesterday we introduced you to DB (not his real name — please keep it that way), formerly an associate at Sullivan & Cromwell. At S&C, and in law school before that, DB became notorious for bragging about his wealth and making politically incorrect remarks.

We collected some of his impolitic quips in our prior post, and other anecdotes surfaced in the comments (e.g., here and here). For your reading pleasure, here are a few more stories:

  • In law school, at a firm reception in the Time Warner center, DB got drunk and started going on about how he was wearing crocodile shoes that cost thousands of dollars and how his brother drove a more expensive car than the partners at the host firm.
  • At an S&C firm retreat, the same one where he made his comments about the ballet, DB was placed in charge of entertainment for one evening. This included brainstorming for the “S&C Superlatives” contest, which is supposed to feature innocuous, yearbook-style items like “Miss Congeniality,” “Best Smile,” or “Most Athletic.”

    The items suggested by DB? “Sluttiest Partner” and “Partner Most Likely To Sleep With His Secretary.”

  • DB once said, to a highly attractive summer associate he encountered in the hallway, “You really aren’t that hot. Everyone thinks you are, but outside of here you really aren’t.”
  • In fairness to DB, he has his defenders and positive attributes. One tipster describes him as “a bright guy,” and another as “nice in a weird way,” as well as unusually generous and thoughtful at times. A third raves about his hotness, including “six-pack abs and amazing arms.” As for the sexist (and homophobic) quips, they may be best attributed not to malice, but to personal issues that DB is probably still working through.

    His colorful comments, however, aren’t what got DB in truly hot water. Find out what did, after the jump.

    double red triangle arrows Continue reading “How To Get Fired (or Asked To Resign) from Sullivan & Cromwell (Part 2)”

    knitting out of trouble.JPGInstead of adding to the drumbeat of bad news, the University of Buffalo Law School has taken a novel approach to navigating the current economic climate. A UB student tipster reports:

    Job prospects at the University of Buffalo School of Law are so BAD that the CSO has given up hope! Instead of looking for firms’ with availability, the CSO is now offering a course on knitting. Although students will soon be jobless and homeless post-graduation, at least we won’t be cold!

    The Buffalo career services office confirmed that they were indeed offering their students an opportunity to learn a real trade:

    To all you knitters, crocheters and other crafty ones out there:

    As the weather cools and the snow starts to fly, doesn’t it feel good to have a nice warm, woolly UFO (un-finished object) on your needles?? If you understood that last sentence, and would like to spend an hour with like-minded knit-wits, please [Redacted].

    We’ll be knitting, crocheting, or engaging any other textile-related, portable projects together. We hope that it will become a regular standing group, where we can sit, knit, chat, get help, find new patterns, share techniques and ideas, talk about our favorite LYS, and generally “commune with the yarn.” …

    We had a great group of around seven people last year, representing the faculty, library, staff, and students. Some were expert knitters, and others were just starting out, so feel free to join us regardless of skill level, or if you’d like to learn…

    As always, crocheters, needlepointers, quilters, macrame-ers, etc. are welcome

    The rest of the memo, after the jump.

    double red triangle arrows Continue reading “University of Buffalo Law School Students Try To Learn A Trade”

    Job of the Week Lateral Link ATL logo.gifHave you ever wanted to be a part an industry on the cutting edge of law and science. A major pharmaceuticals company has an opening for you. As always, the Job of the Week is brought to you by Lateral Link

    Position: Mid-Level Corporate Counsel

    Location: Alameda, California

    Experience: 2 – 5 years

    Description: This global, broad-based healthcare company is devoted to the discovery, development, manufacture, and marketing of pharmaceuticals and medical products, including nutritionals, devices, and diagnostics. The company employs more than 68,000 people worldwide and markets its products in more than 130 countries, with revenues of $25.9 billion in 2007. The Alameda, CA office is seeking a mid-level corporate associate to draft, negotiate and review contracts. The successful candidate must have 2 – 5 years of corporate experience at a major law firm or corporation; a record of success in counseling clients on a range of business transactions; and an understanding of the health care industry and knowledge of federal and state fraud and abuse regulations.

    For more information, please see Position 10032 on Lateral Link or contact Maricar Tinio. Membership in Lateral Link is free and you can apply at www.laterallink.com.

    Brooklyn noir.jpgEarlier this year, we presented a series of threads on career alternatives for attorneys. As it turns out, there are things you can do with a law degree other than working for a large law firm — and now that large law firms are laying off lawyers and even dissolving, now is a good time to revisit the topic.

    One career alternative we didn’t include in the first go-round was living by the pen — probably ‘cuz it’s pretty hard to pull off. As one commenter quipped about another daunting alternative (entrepreneurship), “maybe I should try out for the Yankees while I’m at it.”

    Not everyone can be John Grisham or Scott Turow. Being a writer is not so much an alternative to being an attorney as it is something you can do on the side.

    Unless your spouse is willing to let you quit your job and pursue the literary dream. Malcolm Gladwell of the New Yorker wrote a piece recently about creativity, and how it is not the sole provenance of the young. The piece revolves around an attorney who quit his job at Akin Gump to become a full-time writer and spent 18 years at it, eventually writing a book of short stories that won the Hemingway Foundation/PEN award. All the while, his wife, a Thompson & Knight partner, acted as his literary patron (i.e., the family breadwinner).

    If you have a patron, or if you have lots of creativity, or if you just love spinning tales, perhaps you should think about trying your hand at the writing craft.

    Last night, we attended a panel discussion at the New York City Bar Association: Non-Fiction: True Crime Stories & the Truth about Being a Lawyer-Writer. Speaking were JD-holders Thomas Adcock of the New York Law Journal, former Brooklyn prosecutor Dennis Hawkins, and legal PR maven Rosemarie Yu. Thomas Adcock has written seven books, including Dark Maze, which received an Edgar award. Hawkins and Yu have recently had their work published in the non-fiction anthology Brooklyn Noir 3.

    All three are patron-less, balancing work with writing. Check out their tips for other aspiring writers, from getting started to getting published, after the jump.

    double red triangle arrows Continue reading “Career Alternatives for Attorneys: Writer / Author”

    Powell Goldstein LLP Powell Goldstein Frazer Murphy.jpgHeller Ehrman and Thelen dissolved after big time mergers fell through. While our readers have been speculating on the next capitulation to the financial crisis, it seems that Powell Goldstein has narrowly avoided a full scale dissolution thanks to Bryan Cave. A tipster reports:

    Powell Goldstein, which has been an prominent firm in Atlanta since 1909, will no longer exist next week. PoGo partners voted last week to approve an acquisition by Bryan Cave, and BC will announce the acquisition on Monday.

    Bryan Cave did not return multiple calls requesting comment on the story. Meanwhile, a PoGo spokesperson said “I have nothing to report” when asked about the acquisition.

    As we understand it, the union between Bryan Cave and PoGo is not a “merger” so much as it is a buy-out. Additional tipsters have reported that nobody from PoGo — not staff, not associates, not even partners — is safe. Equity partners could be let go early next week.

    Putting together the rumors after the jump.

    double red triangle arrows Continue reading “Bryan Cave to Acquire Powell Goldstein”

    Morning Docket 10.31.08

    Halloween pumpkins.jpg* Texan Toxic Tort attorney Fred Baron has died. His profile went national this year due to his support for John Edwards (and his mistress) and his campaign to secure an experimental drug to treat his cancer. [Dallas Morning News]

    * New York AG Andrew Cuomo is on the case of big executive bonuses in the wake of the bank bailout. [New York Times]

    * New York divorce lawyers aren’t very good at making their marriage work. [Newsday]

    * Ohio may be the new Florida this election. [New York Times]

    * Here’s a horror story for you. Paralegal beheads a gang member, puts pieces of the body in plastic, and buries them. His attorney/employer is defending him, saying his paralegal “did not have a chance to call 911.” Happy Halloween! [Associated Press]

    Non-Sequiturs: 10.30.08

    sleeping through the downturn.JPG* Given the economy, it might be a good time to pull a Rip Van Winkle. [Corporette]

    * Barack and Michelle Obama have incomplete lawyer profiles. Is a new attack ad in the making? [Legal Blog Watch]

    * Law Professors who rule the blogosphere. [TaxProf Blog]

    * Milberg Weiss hires a ringer to win a lawyer league basketball game against the Food Bank of New York. That adds up to a law firm cheating to win an exhibition against a charity. But the Food Bank lawyers responded in the only reasonable way. [Supreme Dicta]

    * Don’t forget to bid for Item #16, a fun night with Kash and Lat while I drunkenly murder a homophone in the background. [Equal Justice Foundation]

    DLA Piper logo Above the Law blog.jpgIn what could be a trend, DLA Piper has canceled the holiday party for their Chicago office. The move is similar to Fried Frank’s decision to scrap their holiday festivities, but there is no indication on whether DLA intends to donate any of their party money to charity (as Fried Frank did).

    Spokespeople for DLA Piper did not immediately respond to a request for comment.

    It’s not just the legal community that’s scaling back on holiday cheer. Yesterday, Barclays announced they were canceling their holiday party too. For a complete list of the financial firms that have gone Grinch, see our sister site, Dealbreaker.

    The holiday party is just one notch on the ever tighter belt. More after the break.

    double red triangle arrows Continue reading “DLA Piper Chicago Cancels Christmas/Staffers”

    dont be an asshole.JPGAh, Sullivan & Cromwell. It’s a top law firm — not just in prestige and profits, but also blog fodder. See, e.g., Carlos Spinelli-Noseda (partner who defrauded firm and clients of half a million dollars through expense fraud); Aaron Charney (associate who sued the firm for antigay discrimination, while still employed there).

    When people leave 125 Broad Street, they go out with a bang. Today, courtesy of several tipsters, we bring you the tale of another former SullCrom employee who departed under less than ideal circumstances. Let’s call him “DB,” short for “douchebag.”

    (To those of you who find the term offensive, we say: if it’s good enough for the Second Circuit, it’s good enough for ATL. Also, we use it affectionately.)

    During law school, DB developed a reputation “as a racist, sexist jerkoff who always flaunted the fact that he was wealthy.” Here’s why:

  • His first words upon meeting his law school roommates: “Hi, I’m DB. I’m independently wealthy.”
  • In a class discussion about price discrimination and consumer choice, he said: “Sometimes when I’m in a real hurry, I am forced to fly coach.”
  • At a law firm reception, he said to the attorneys, “Don’t you miss the good old days when there were no girls at a place like this, except for hookers and strippers?”
  • This charming lad then made his way to 125 Broad Street, where he joined GP (general practice; S&C-speak for “Corporate”) at Sullivan. Now, S&C pays well — in addition to generous base salaries and year-end bonuses, they pay supplemental bonuses to senior associates. But DB was unimpressed:

  • “My allowance used to be bigger than whatever I earn from this place. I feel so poor now that I’m working.”
  • Read more about his rudeness, after the jump.

    double red triangle arrows Continue reading “How To Get Fired from Sullivan & Cromwell (Part 1)”

    Bell Boyd logo.JPGBell Boyd & Lloyd managing partner Nancy Bertoglio has confirmed the layoffs we reported earlier today. She stated that 10 associates were laid off today:

    Like many firms, Bell Boyd is facing unprecedented market conditions and we are taking measures to ensure the firm’s efficient operation and growth. Today regrettably, Management, in individual meetings with associates, asked 10 to leave effective January 1, 2009. The associates affected were representative of practices across the firm, and none were first year associates. All are in the Chicago office. This is a belt-tightening measure that will put us in a better position to ride out the economic storm and remain competitive in what we expect will be a challenging business environment for law firms and our clients.

    Nancy Bertoglio

    Managing Partner

    At least the firm didn’t throw mud on the associates on the way out of the door. This message makes it clear that the layoffs were done for economic reasons, not because the 10 associates were “under performing” in some way.

    Good luck to the most recent additions to the job hunting community.

    Earlier: Nationwide Layoff Watch: Katten’s Official Message

    Update: Sonnenschein Confirms Attorney Layoff Numbers

    Nationwide Layoff Watch: Jenner & Block Cuts … Partners

    Heller Ehrman LLP Above the Law blog.JPGDechert has just announced the hiring of former Heller chairman Matt Larrabee. His official partnership with Dechert is thought to be a mere formality.

    From Dechert’s press release:

    “Matt’s experience is unusually diverse, with each of his practice areas intersecting with a number of Dechert’s core litigation practices: class action defense, antitrust, fraud claims, and complex commercial litigation,” said Dechert chairman Barton J. Winokur. “Perhaps most importantly, Matt will provide yet another highly experienced and sophisticated first chair litigator to Dechert’s already impressive group of trial lawyers. I think everyone would agree that Matt is one of the most respected trial attorneys in the nation and we welcome him to the firm.”

    One firm’s loss is another firm’s gain. If Dechert ever has to dissolve, they’ve got a new pro in house.

    Read the firm’s full statement after the jump.

    double red triangle arrows Continue reading “Dechert Picks Up An Interesting Piece From Heller”

    The Chicago market is really tough these days. In the past month, 21 associates lost their jobs with Katten, 25 associates were laid off from Sonneschein, and Jenner Block parted ways with 10 partners.

    A tipster tells us that Bell Boyd’s Chicago office could be the next firm to suffer the layoff bug:

    18 fired this morning, some 1st years, some 4th and 5th years. Firm wide meeting at noon central

    We have contacted the firm, but they have not yet responded.

    We will update you as soon as we can confirm or deny this report.

    Update (3:03): Bell Boyd has confirmed 10 associate layoffs. Please see here for additional coverage.

    Earlier: Nationwide Layoff Watch: Katten’s Official Message

    Update: Sonnenschein Confirms Attorney Layoff Numbers

    Nationwide Layoff Watch: Jenner & Block Cuts … Partners

    Toilet.jpgThere are moments in life when one is confronted with the inconsideration of others and can be moved to despise one’s fellow man — e.g., when stepping in discarded bubble gum, or passing through an exhaled cloud of smoke while jogging.

    One Yale Law School student had a moment like this in the ladies’ restroom, and she has blasted the student list-serv urging greater consideration in the future.

    Here is an excerpt:

    Dear Prissy Chicks of YLS,

    WHY do you squat over the toilet seat and splatter it with pee instead of just sitting on it like everybody else — or at least cleaning up after yourself? I just went to the ladies room downstairs by the ATM and two of those friggin toilets were liberally spritzed, thanks to your selfish carelessness. Consider:

    1. Yes, toilet seats at our school come into contact with the asses and thighs of many many people. But your ass and thighs are not alone in this world!!! Would it kill you to put your naked buttcheeks on the toilet seat, anyway? It’s not like you’re going to be eating off them! By squatting above the toilet seat and cattily spraying everywhere, you force sensible women to deal with your uric carnage. You either make that toilet unusable, or make the braver women wipe off your peepee…

    You might not want to sit on the toilet seat, but *nobody* wants their bum and thighs to be dampened by your prissy potty puddles.

    The hazard of being a female. There have been many replies to this, reproduced after the jump. We wanted to highlight this comment, scoring a point for Harvard in the YLS / HLS debate:

    You’d think a school with the resources of YLS could tend to its most basic sanitation requirements. (Harvard provides free tampons in the women’s restrooms, and perhaps their toilets function, as well.)

    Full angry e-mail — with detailed instructions on bathroom use, and myriad replies — after the jump.

    double red triangle arrows Continue reading “‘Prissy potty puddles’ on the Yale Law School list-serv”

    Ask the Experts.jpgAlmost anyone who has interviewed for a job is familiar with the point at which the prospective employer asks, “So, do you have any questions for me?” Not everyone prepares for this moment, however, and “No, I don’t think so,” remains a surprisingly common response.

    Candidates who decline to ask questions in an interview pass up a significant opportunity to advance their interests. Worse, this lack of initiative can leave the impression that either a) they don’t particularly care whether they get the position, or b) they aren’t knowledgeable enough to anticipate the types of issues involved in the work.

    By contrast, asking thoughtful questions in a job interview allows candidates to:

    * show you understand the types of issues facing the company,

    * demonstrate how you would develop strategies to address such issues,

    * highlight your critical thinking and problem solving skills, and

    * underscore your interest by taking the time to research the individual company.

    In a pool of otherwise equally qualified candidates, asking suitably crafted questions can help you stand out, and at the same time give you valuable information to help you decide whether you would accept an offer there.

    1. What not to ask…

    It should go without saying that an initial interview is not the time to ask questions about salary, vacation, or other benefits. Similarly, questions relating to turnover rates, how quickly staff are promoted, how often people move between practice groups, and where people go when they leave the job should wait until after an offer is made.

    Remember that basic rules of interview etiquette continue to apply as you articulate what it is you want to know. Your interests are not advanced by coming across as a know-it-all, challenging why the company has or has not taken certain actions, or opining on matters you really don’t know much about. You leverage the opportunity to showcase your skills only when the questions you pose are both substantive and appropriate in the context of an interview.

    Additional tips after the jump.

    double red triangle arrows Continue reading “Ask the Experts: Impress Prospective Employers by Asking Great Questions”

    Will Work for Food 3 Above the Law blog.JPGWe’ve reported that firms with “oversubscribed” summer classes are calling up 2Ls and encouraging them to not accept their 2009 summer associate offers. Unlike Akin Gump’s move, the tactic is a clever dodge around the NALP guidelines. As we understand it, firms are not committing these “cold offers” to email, instead using the telephone and avoiding a paper trail.

    Career services departments are trying to cope with this new law firm tactic. Some Michigan students received this email from their career services dean:

    Hi. It is my understanding that you have an offer from White and Case in New York. After talking to contacts in the New York legal market, it appears that White and Case may have over-hired for next summer and has a particularly large class. Therefore, it may be in your best interest to take another offer if you have one.

    According to the WSJ Law Blog, White & Case claims ignorance over why Michigan would send out this email:

    A spokesman for White & Case told the Law Blog: “We don’t know, honestly, why a law school career services office would send out these letters. No on has talked to us about the situation, and we’ve certainly not encouraged anyone to send out letters to students.”

    Notice how White & Case did not say “we intend to honor every summer associate offer we’ve made.”

    We have been consistently encouraging 2Ls to accept their offers sooner rather than later. Many career services departments have echoed that advice. White & Case joins Proskauer as one of the firm that has been “outed” as telling people that they should look elsewhere for offers, but we suspect that many firms are doing this.

    After the jump, speculation about other firms.

    double red triangle arrows Continue reading “Accept Your Offers Part 7:
    White & Case v. Nervous T-10 1L?

    Morgan Lewis.JPGA central theme running through this week’s bonus speculation was that bonus decisions would be made much later this year than last year. As first reported here, Cravath kicked off the bonus season last year on October 29th, 2007. But in 2006, Milbank didn’t get the ball rolling until December 8th.

    The first solid information that bonus decisions could be made a lot later this season came in today from Morgan, Lewis & Bockius. MLB associates were notified that bonuses would not be paid before the holidays via a firm wide email.

    Read the email after the jump.

    double red triangle arrows Continue reading “Associate Bonus Watch: Morgan Lewis Pushes Back Bonus Decisions”