Heller Drone

first

sniff*

These pretzels SUCK

*double checks to make sure Heller isn't on my mail merge list*

-nervous T-10 1L

THIS is why you take don't cancel your F-ing vacations because you're worried about what the firm will think. Just go! Your life already GULC's enough because you chose a horrible profession.

I can't afford these pretzels, anyway.

How come you fools aren't writing about the new general in town? http://www.abajournal.com/news/meet_the_new_solicitor_general/

Umm....not paying vacation in Heller's California offices is akin to them not paying employees for time already worked. Vacation = wages in California.

Cal. Labor Code Section 227.3. Did Heller's labor department jump ship too?

um, it was done at brokeck, and will continue to be done. employees can sue or let the AG sue...

I'd like to know if the Covington associates and staff, whose last day was 9/30, received accrued/owed vacation in their last checks.

This is total BS for the Heller staff and associates. Is there anything in California partnership law that prevents the partners from pulling capital from the dissolved partnership prior to settling debts? If so, is there also a lookback so the partners who have recently defected can be tagged, too?

Good luck.

12, you assume that any of those partners have gotten their capital contributions back. I think that's a huge assumption right now. Capital contributions often aren't repaid immediately upon departure, and partnership agreements often gives the firm a lengthy period of time to repay it.

Heller staff has thrown down the gauntlet.

Monday, Bloody Monday

http://hellerdrone.wordpress.com/2008/10/03/i-hate-mondays/

Nervous T-10 1L -

You're annoying and pointless, just like the "first" folks, the people who post three T's in the middle of any law-related word that happens to have a T, the "Wildman Harrold" idiot, the Bratislava idiot, and all the other people who have figured out, after a couple years of trying, that the internet can be used to go to a site other than AutoAdmit. Please forget you ever learned that, and go back. Now I'm going to go out and drink with my friends, because I actually have them.

Signed,

Everyone

Covington-bound associates, at least those that left on Tuesday, were paid their accrued vacation. From what I understand, people who submitted resignations effective after Tuesday have not been (and will not be) paid accrued vacation on exit.

And yes, this violates California law; and yes, that makes me think that we are on a quick burn to bankruptcy. The only hope is that the shareholders can can collect enough of the A/R to satisfy the banks and have a chunk of money left over to pay the associates and staff.

I do not blame the shareholders for this particular development. I believe that they sincerely would pay people if they could. I believe that the banks have tied their hands. That doesn't make this particular sandwich any easier to stomach, especially for those (and there are a few) associates who could have pushed their other options but stuck around to support the shareholders who are legitimately too busy interviewing elsewhere (in part on behalf of those same associates) to service clients at the moment.

Have a great weekend, everyone.

So, the California Labor Law for earned vacation is no good? Governor, are you going to do something about this? Just letting the banks who don't give a crap, Bank of America & CitiBank take control of those hard earned wages of innocent people. Calling all Lawyers, reporters, expose these two banks to the nations of their wrong doing.

God Bless All The Heller Ehrman Employees

Heller's lost its labor group several months ago.

Any California labor lawyer want to weigh in and explain whether what Heller is doing is legal?

16 here -- anywhere in the penultimate paragraph that I said "associates", please read as "associates and staff". Apologies.

Unfortunately for you #15, WILDMAN HARROLD would never hire a loser like you. Go hang with your "friends" and an FYI - hookers that you have to pay for b/c you can't get laid aren't your "friends."

-FRAT STUD.

20: Yep.

Signed,

Everyone = TTT

20, 21, 22 -

Elie, can you just block these fucking idiots? Please?

Miserable Fat Belgian Bastards.

23 - These fucking idioTTTs make this site worth visiting on a regular basis. The content is otherwise e-i-e-lame-o. Besides, Elie is much too busy copying-and-pasting article ideas from other legal blogs and then cunningly adding typos to cover his tracks. He demonstrates such artful craftsmanship just to provide loyal readers with the joy of uncovering his Easter Eggs.

I just found https://www.schoolbooksonsale.com, it's a site to buy used textbooks, instead of having to sell them back for pennies.

Accrued vacation is wages under CA law. I have three words for Heller employees: "Waiting time penalties." And I have four initials - DLSE.

27 - former Brobeck associate here. As I posted on anothe thread, a band of Brobeck associates not paid their PTO sent an email to the partnership committee handling the dissolution. The band threatened to take the partnership before the Labor Commission to demand PTO plus waiting time penalties.

The email was read at the next partnership meeting and a partner confirmed that the associates were correct and would be awarded both PTO and the penalties.

The associates were promptly paid.

You could always get in line and get your money from O.J. if Heller will not pay up since he is not going to need it, oh wait, he has "no" money because everything above his living means is going to a fund; Now Go to Jail and Do Not Pass Go Dumbazz (he believes in the jury system - you already got hooked up/lucked out one time, we couldn't do it again)! ;)

Here's another thought - although I don't doubt the veracity of the no vacation pay email, and the resulting panic, generated for more mass departures/and or employees immediately taking vacation - isn't there a bottom line number of employees a firm has to maintain in order to keep group health insurance? So say the firm requires x number of employees to qualify for group insurance and in the next few weeks (before November, of course) x plus 100 employees voluntarily leave, does Heller then have another reason/excuse not to pay group benefits? Does anyone have expertise on this? This is my thinking as to the next sneaky trick up the Dissolution Committee's sleeve. Any other thoughts on this?

That's the problem of so many so called American's (if you will) everyone plays god and want's their version to be right. We all say that our justice system works that is until it no longer gives the verdict we like and by the way everyone who thinks O.J. is guilty where were you when the earth was created? Judge not to be not judged that's bible:)

It wasn't just vacation time that went unpaid today. Those of us whose last day was today were not paid AT ALL -- not even our wages for the past two weeks. (Apparently because checks including both wages and vacation time had been prepared. The order to withhold vacation pay came down too late to permit the drafting of replacement checks. So we got none at all.)

This is unbelievable! This is not going to go down in an orderly fashion, no matter how much Barry and Matt preach to the press.

Juictice! Lets talk about something important like OJ.

Juictice! Lets talk about something important like OJ.

I've started a support group for formerly incoming associates so we don't have to post random comments in Heller-related posts elsewhere (unless, of course, we want to).

http://hellernomore.blogspot.com/

5:53 - You can talk about the OJ Simpson verdict here:

http://abovethelaw.com/2008/10/oj_simpson_convicted.php

20: AMEN.

When I left my old firm, I threatened to inform the state about their labor law violations. They were withholding associate review files, which is illegal in California. I had to give them a firm deadline to comply with my request, and I made it clear that I would go to the authorities. They caved.

Despite being run by attorneys, many firms try to push the boundaries of what is legal, hoping they don't get caught.

Fight the good fight and call their bullshit. That's the only way many of these people will do what they are required by law.

Sue your partners.

40 - Shouldn' t we name the banks in the suit as well?

What would be your cause of action against the banks? What obligations do they have to you, given that they are not your employers?

42: how about tortious interference with contract?

Also useful. Refer whatever shady activities to the relevant state bar ethical commissions. If they are breaking the law and you lack the resources, time, or wherewithal to deal with suing them, that will hit them where it hurts.

43, do you actually know what the elements of that are? The banks' actions have to actually be improper/unlawful, they can't just interfere with your contract. What is improper or unlawful about a bank saying "Sorry, we've loaned you enough money, we're done until you repay some of these credit lines"?

Nice, everyone. Let's file suit against all of the partners, the majority of whom were not responsible for Heller's downfall and who also are suffering financial losses from this, probably far in excess of what any associate or staff member is suffering. As long as we get every last dollar, who cares about anyone else, right?

-Non-partner

Does anyone have a complete list of who is on the Dissolution Committee?

It's not just reporting them to the Labor Commission in California. A knowing and intentional violation of law should be reported to whatever body handles lawyer regulation in the states to which those Dissolution Committee members belong.

15, did you say that WILDMAN HARROLD is opening a Bratislava office? Finally, some news I can use.

Lynn Loacker and Peter Benvenutti are on the Dissolution Committee. Others too, but I've forgotten---probably Barry.

46---I've gone back and forth on whether to feel sorry for the shareholders for a while and now am leaning against it. And I think the statement that they will suffer more than associates is flat-out wrong even when you count the value of their lost capital. A lot of associates are not going to land on their feet after this, contrary to what we've been told by shareholders who either remained naive longer than they should have or were being disingenuous---the market out there is vicious, and there will be no acquisitions of large chunks of the firm that will absorb the associates not lucky enough to have a protector who is both loyal and rich in clout. Take 6-9 months of unemployment, and then add the difference in salary between a large firm position and a government/small shop/clerkship position one might take to "ride out the storm"---you're looking at a few hundred thou easy, which is equal to or exceeds the value of many partners' capital. When you think about those of us who will not be able to find a new position anytime soon that is commensurate with our credentials and/or supports our interests and who will be unable for whatever reason to ever quite bounce back from that, the losses get much larger (if more speculative).

Yes, the financial loss from unpaid vacation time is small, but it's a reasonable issue to seize upon if it can make the partners' lives difficult. As a soon-to-be former Heller associate who was sympathetic to those same partners until quite recently, I'll now say that that's fine by me. The pattern of dishonesty, in my personal experience, extended beyond Matt and Barry and infected people I had thought until recently were my mentors.

Remember, too, that one major reason the firm might not be able to collect enough to pay the bank and the employees is because departing partners are explicitly or implicitly writing down past time billed for their clients, in order to keep them loyal. This doesn't make them evil, it's every man for himself out there, but if the threat of state bar and/or labor committee action and/or bad press for named individuals (rather than just the firm, which is now immune to bad press) can wring a few thousand out of them for staff and associates, that really should be seen as morally equivalent behavior.

Do you see what's coming now, Thelen associates? Get ready to get screwed.

FYI: the original "nervous T-10 1L" has been banned. Up to this point I have only banned obvious spammers and anti-semites. T-10 (but not T-7) 1L is my first "because this person sucks" ban. I wish it hadn't come to this, but every single comment this person offered since showing up in September was useless and included the annoying tagline.

But the original "wildman harrold" person stays. That person also says other things, many of them relating to how my many grammatical errors hurt Jesus. I'm Catholic and reflexively respect people who can talk to Him.

I hope these editorial decisions enhance the strength of the ATL community. I'm going back to mangling the English language while I stuff my pie-hole with the meat of dead lizards that I could not have obtained without the help of affirmative action.
-- Elie

..."also are suffering financial losses from this, probably far in excess of what any associate or staff member is suffering." Please. How many shareholders are going to lose their house or their health care? "As long as we get every last dollar, who cares about anyone else, right?" Exactly. But that's the shareholder attitude you're channeling. What's going on right this minute is a disgrace. Shame on you, former Heller shareholders.

It isn't that the banks wont loan more money--they are telling Heller that it can't use the revenue coming in the door every day to pay wages. The banks are in effect forcing Heller to break the law.

49, thanks for the truest words I've ever read on this blog.

Being unemployed right now (or come Nov 28th if you want to be technical about it) is so much worse than I could have imagined a month ago or even a week ago. It's finally sinking in that I will be jobless for many months to come. The lateral market is unbelievably brutal. This dissolution could not have come at a worse time.

Here is some information for the future lawsuit. How many Directors/Managers resigned the day before the banks said there would not be enough money to pay vacation?? At least three people in the know, C.A.O., C.I.O. + at least 1 in the IT Dept. that would have known what was coming. These people resigned effective immediately and were paid their full vacation accrual and all other incentive pay. Rats leaving a sinking ship.

Condolences to Heller employees. Anyone who is suggesting this is harder for the partners than associates needs to pull their head out their ass.

53 has it exactly correct. Part of the deal to not put HEWM into immediate bankruptcy was to prop up the firm just long enough for the banks to get around the order of priority. Heller Highwater (I think), had it right, at this point bankruptcy might be the best thing for associates. It stops the banks' raiding and put staff and associates at the front of the line for a payout (in a couple of years).

And the CIO has now hired back on as a consultant, at no doubt a massive rate. Since he never did anything except convene meetings and schmooze with vendors, I'm at a loss as to what "consulting" he can provide at this point.

To Elie at 51: Thanks for trying to regulate the comments. My .02 (for what it is worth) would be to ban only the truly offensive commenters and allow the annoying commenters to stay on. There were many who found L2L annoying, but his/her repeated input really helped to change the discourse/added transparency to law school/career placements discussions.

If a commenter is truly annoying, we can scroll on by in less than a fraction of a second. But otherwise, even the annoyingly fixated folks add to the feel of the ATL posting community (much as they did in law school). Plus, there's no accounting for taste--what you find annoying may amuse others (see, e.g. Frat Stud who has at times made me laugh out loud). I suspect that you've got enough on your hands trying to write and manage the blog (and to ban those posters who would be truly damaging to the ATL community) without trying to shield the rest of us from nervous T-10 1Ls. :)

This HE associate appreciates Elie's approach to the nature of this particular blog. For the moment, I can do without nervous T - 10 1L. Perhaps I'm taking too seriously the fact that I'm soon out of a job in a not-so-friendly market? I don't believe Elie is trying to "shield" us from anything; rather filtering out bullshit that doesn't in any way add to the discourse.

Seems pretty clear under California law that the California staff and associates are legally entitled to accrued vacation payouts. (I don't know about other states.) Legal entitlement, however, may be a technicality if there is no money to pay out. If an entity doesn't have the cash to pay accrued vacation, the employees won't get paid.

The comment that bankruptcy was delayed in order to let the banks get their loans paid off / to take priority is an interesting idea. What would the incentive on the partnership level to have done this? Any sense of whether there would be enough cash or accounts receivables to pay out vacation if Heller filed for bankruptcy?

Also interesting is the tidbit of information that certain people in-the-know resigned and were paid out vacation but then were hired back. That seems in very poor taste for these "insiders"--their vacation can't have been worth that much that they would call into question their reputations, etc. by doing this. (Seriously, how much vacation could they have saved up?) It would have been worth it for the CIO to show some leadership and treat himself (herself?) equally with the others--and not use inside information to resign the day before the policy went into effect only to come back as a consultant.

Finally, I'd be hesitant to leap to the accusation that partners are writing down bills in order to keep clients' loyalty. Partners often write down time, and might especially do so if they feel that distractions led to duplicated effort, etc. Writing down time as a specific bribe to follow the partner would obviously be highly problematic. Although not a Hellerite, my perspective is that Heller partners have been (deservedly, it seems) well respected in the past, and without hard proof it seems unfair to accuse them of this.

Good luck to the Heller folks.

I hear you, 60 (and feel for you as well). I'm only pointing out that maybe that 1L really is nervous and facing some of the same fears we all are about the economy and making enough money to pay off/down loans, etc. He/she may be annoying with the repeated posts, but may also be an interesting/unique/accurate reflection/barometer of the anxiety may of us are experiencing w/r/t the economy.

-59

Give me a break, 62. Do you really not know how the internet works? "1L" is neither a 1L nor nervous about anything--to the extent you choose to read even that much substance into his/her/its comments (really, the "meaning" of these repeated posts ceased to have anything to do with the ordinary meaning of the words written quite a while ago, to the extent they ever did; the sole purpose is to annoy -- the words could be anything; go read some Derrida).

The idea that Heller partners will write down past-due time is not an imaginative accusation---it's something that's been discussed at Heller. While I don't recall hearing any partner say as much directly, a number of people are guessing that collection efforts are going to drop off considerably. It actually sounds as if the "bribe" (which isn't really that, just a mutually convenient arrangement) is often something initiated by the client, who will ask the partner nicely if they really have to worry about paying that bill to the soon-to-be-nonexistent firm the partner no longer works for, the partner shrugs in response, the bill never gets paid. Partners are pissed too and probably don't mind screwing the banks; problem is screwing the banks is also screwing the employees; but so it goes.

Heller partners are for the most part very respected as human beings as well as as professionals, 61 is right about that, and to some extent this is/was a deserved reputation. But the radical failure of communication and the doublespeak dishonesty toward associates and staff that preceded and followed the collapse were real, and as much as many partners like to blame all of it on the ugly little management cabal, fact is it was actually pretty endemic and remains so. I think an awful lot of Heller partners have done right by their clients and communities over the years and at the same time have done serious wrong to their colleagues (in some cases fellow partners as well as employees). In spite of the firm's grand reputation and all the ways it's being mourned in the SF legal community---in fact partly because of that---this really needs to be said, and I think it will be said in more places than anonymous internet forums as the months go by.

Heller Drone here. I really appreciate everyone's support now especially the various theories, along legal lines or not, as to how to proceed.

Understand I am not an attorney but have been working in BigLaw for over 20 years. I am not doing this out of sour grapes having been ass raped with sand as lube by Brobeck. I am doing this because I am in the same boat with close to 225 hours of accrued vacation and having to support a family here.

Right now I've just posted the various wage claim procedures etc. by state. I also working on cessation of healthcare benefits and proper notification/regulations if any by state. I do know in San Francisco with the new San Francisco Health Care Security Ordinance that there are penalties for not providing healthcare benefits with more than 20 employees.

Thanks again for your help guys!

Heller Drone
Cruise Director

Just another reason to hate that douchebag son of a bitch Fram. Fuck you and the horse-faced bitch you rode out on. I hate you.

Heller Drone rocks.
46 = partner. Let's drag him to the town square by his ankles and pelt him with rotten tomatoes.

67: My second laugh of the day! Heller Drone was my first on HHW. The visual is awesome, no physical harm, just lots of seeds and red mush.

47

According to the Dissolution e-mail the went out to Heller employees on Monday, 9/29/2008, " . . . the Dissolution Committee, with Brad Scott as Manager and Richard Holdrup as Deputy Manager . . ." is all I know.

If I find out more I will.

BTW:

Brad Scott - brad.scott@hellerehrman.com
+1 (212) 847-8707

Richard Holdrup - richard.holdrup@hellerehrman.com
+1 (415) 772-6417

*sad that elie decided to ban me* :(

*goes back to mail merge (did you know that watchell and cravath hire 1Ls?)*

seriously though, i didn't think i was that bad, i was just trying to bring some humor to the fact that 1L's like myself are very nervous not only for this summer but OCI next year.

i'm not a big fan of elie banning me while keeping FRATSTUD and such. oh well, guess it's not my blog.

oh ya, the above comment was written by me, nervous T-10 1L. not only am i nervous now but sad that my school got thrashed today by illinois. :(

-nervous T-10 1L

Heller Drone here

Question everyone: under what provisions of the Rules of Professional Conduct could an employee file a complaint with the State Bar of California? The only provision of the Rules of Professional conduct that might apply: Rule 3-210. Advising the Violation of Law

I'd appreciate any enlightenment y'all can offer.

Heller Drone
hellerdrone@gmail.com

HellerDrone - I'm not sure there is a professional conduct violation here. Keep your eye on the ball - I'd stick to slapping them for the labor code violations. I know you're mad, but the best revenge against a greedy partner is to take more of his/her money.

46-- yes partners are losing their capital investment, which may amount to more money than accrued vacation and salary, but: (1) they have better job prospects than associates and non-legal staff; (2) the impact of the financial hit is greater on associates and staff, who have been earning less money over a shorter period f time and have less saved; (3) this is the partners' business -- they earn the rewards for taking the risk -- now they have to incur losses for that risk. associates and staff are EMPLOYEES

70: the key is not overdoing it. And I suspect most of the other people who sometimes troll or use the various memes that are available also sometimes post more substantively. Hard to tell since almost nobody (inc me) takes advantage of the ability to set up a login name. Maybe that should become required.

74 (and others), the point is, the lawsuit people are contemplating here won't fix all that for you. Life isn't fair, and sometimes it sucks. People aren't talking about suing, reporting partners to the bar, etc., because it will fix their own personal financial crises (even if you get decent money from a lawsuit, you won't see it for years), they're doing it for revenge. You all are looking for indiscriminate revenge, regardless of an individual partner's actual role in Heller's demise, and what he/she may already have personally suffered as a result of that demise.

And being an employee, as opposed to an owner, does not entitle anyone to be immune to risk. Everyone (except perhaps government employees) is subject to the risk that their employer will go out of business. That's just life. Talk to the auto workers.

Well said, 25. Busting on Mystal never gets old.

Well said, 25. Busting on Mystal never gets old.

76

Risk is risk, legal entitlement is just that. Employees have rights that partners don't, while partners have potential upside that employees don't. Each can take advantage of what they have. And if the partners try to deny employees their rights so that they can keep more money, lose less money, or keep a client happy, well then employees have a right to be pissed and try to get revenge (and $).

How is Heller addressing costs/expenses that Heller attorneys previously advanced for clients -- e.g., travel related expenses paid for out of pocket? Are costs still being reimbursed? It would of be a bad bet to advance costs now and assume that they'd be repaid by the firm, but someone who traveled for business in, say, mid-September may have only recently submitted for reimbursement. Just curious.

Thanks,

Similarly Situated (?)

Heller Drone, I know you mean well and all, and lord knows we feel you as associates, but I think as a matter of strategy, the best course of action would be to wait until we get ALL of our paychecks (or as many as we can get from now until November 28) and THEN start talking about bankruptcy, suing partners, etc. You don't want to cut off your nose to spite your face.

If we rush to rock the boat now we may end up shooting ourselves in the foot with respect to the future payroll cycles that we currently have coming.

Now, of course, if they stop payments on payroll anytime between now and November 28 (which is currently not the case) then that creates a different situation all together. In that case, by all means, gather up the pitch forks and torches and take the fight to their doorstep.

79, but isn't it unfair to blame all of the still remaining partners? Some of they stayed and turned down better offers elsewhere out of loyalty to the firm and its people. They are losing their money for having made this choice--and not just their capital contributions (remember: associates and staff are being paid through November 28 while the partners will not get any distributions). And now you're going to file ethical complaints against them?

To everyone: This is a pretty compelling example of why it is important for everyone--from partner to secretary--to save up 3 to 6 months of expenses in a savings account or CDs. You should have enough saved up to cover rent/mortgage, health care, student loans, and food for you/your family. And then don't tap into this account unless/until there is a real emergency (health bills, unemployment).

The other thing that this thread made me realize: Clients are really getting screwed as well. Changing counsel is hugely expensive mostly because it costs a lot for new attorneys to get up to speed on a case/deal. It also takes time to find new attorneys. And transitioning work is a disruption to the matter itself. What a mess from every perspective (is there anyone who doesn't come out a loser?).

82 - re 3 - 6 months of savings, you are so right!!! Lesson learned.

Why on earth would you Heller folks stay on for another two months. Don't hang on until the sinking ship's mast is sticking up? Grab the few lifeboats you have now, and run for the exits. I can't imagine anything more depressing than doing client transfer and dissolution-related tasks. GET OUT! Why are you being loyal? It's misguided at this point. CUT THE CORD.

From an employee of another SV biglaw shop. I feel for you every day when I drive by on Middlefield :(

You're right #82--all partners are not the same...

In California, accrued vacation time is wages. Someone needs to advice the bank regarding California labor law. If these people aren't paid all of their accrued vacation pay at termination, they are entitled to waiting time penalties. Waiting time penalties are 30 days (six weeks) of pay at the employee's normal daily rate.

I guess this is good news for the last employment law associate at the firm. You'll still get to do some work. Have fun defending all those DLSE charges.

85 - you assume that jobs grow on trees in this economy. If many of us could leave, trust me, we wouldn't even be talking about this right now.

87, I am not a labor or bankruptcy attorney, so I don't know the answer to this, but what good is legal entitlement to the wages and waiting time penalties if there isn't any money to pay them out? After several years of litigation, won't it be possible that the employees will be declared legally entitled to wages but find themselves holding a legal order without anything left to collect against?

I haven't seen anyone make the argument that the California employees aren't entitled to vacation time payouts (other states' employees may be out of luck, I have no idea). But the question is, what good is this right if there aren't funds to pay the vacation time out?

Heller to judgment-proof!

81, your point is only well-taken to the extent people don't have job offers elsewhere. If you're leaving to start elsewhere next week, you've already collected your last (full) paycheck, and it's in your interest to rock the boat NOW regarding the vacation pay to which you're entitled.

people from my high school got paid vacations time all the time

not an attorney, but if LLP = Limited Liability Partnership, doesn't that mean the partners liability is limited to some extent?

"But the question is, what good is this right if there aren't funds to pay the vacation time out?" Well, another question is -- where are the funds coming from to pay for consulting services from the poster boy for useless employees -- the former CIO?

94, that may be another debt the firm is incurring, with the former CIO hoping that even accounts receivable will actually be received to pay his fees.

81, keep your pitchfork handy.

91 - so if you're one of the lucky ones that have already secured employment elsewhere then screw everybody else's chances of continuing to get a paycheck from Heller? Nice.

I think 91 was referring to the people who left in the last week (and there were several) who have already "lost" their vacation pay. And now would be the time for them to rock the boat regarding vacation pay. The sooner a claim for vacation is brought before the partnership, the sooner (and more likely) everyone receives that to which they're entitled. They're playing a game with their staff and hoping they come out on top.

Staff and Associates need to start pushing buttons that will make a difference. The people at Heller know what those buttons are. Let them feel the heat and see what happens. The staff/associate count is much larger than the shareholder count. The shareholder's strength is diminishing daily. It's time to start letting them know that they are allowing things to happen that will damage their personal reputation and integrity. They need to step up to the plate.

For one thing, they need to have some kind of contact with the "incoming" fall associates. They all know they won't have a job come January, but they haven't heard it from Heller Ehrman.

"Heller Ehrman" as an entity may not care, but the shareholders that made up Heller Ehrman should.

The shareholders should do everything they can to honor the loyalty of their staff over the years and reward them accordingly. At least with the decency of paying them their accrued vacation pay.

#58 - The former CIO is Robert Meadows?. If it's true that he resigned and then was hired back as a consultant, then that makes him a GREEDY BASTARD just like the shareholders that left that caused this mess. The CIO who turned his back on his fellow co-workers cannot be trusted anywhere because he only cares for himself. What a f****n asshole. Rumors says he really did not do anything for Heller. How did he ever became a CIO? I hope he's invoice goes in the very bottom of the pile and not get paid.

99, I happen to know Robert Meadows and he is a nice guy. If he did in fact, resign I'm sure it was because he has another opportunity awaiting him. If, in fact, he has been "hired back" as a consultant, it would only be out of his honorable sense of obligation, not to collect a paycheck or screw other staff, but to do the decent and right thing - help the S.S. Heller as much as possible - and knowing him, if he was to be paid as a consultant, he would either decline the salary, or donate it to a worthy cause. He is not a greedy bastard - only one man trying to do the right thing.

93: You are correct. Heller is an LLP, and that does mean the partners' liability for firm debts is very limited. See Cal. Corp. Code 16036(c).
Their exposure to the banks could be different, depending on what loan agreements terms are.

98, the folks whose last day at Heller was last week got paid their accrued vacation. I know this from personal experience. They handed me a check on my last day last week. This is truly shitty and I feel terrible for those who are still there. My guess is that eventually they'll be clear to pay this, but it may be quite a while before that happens.

100 - you definitely do NOT know Robert Meadows.

89: There may not be enough in the bank right now to pay wages/vacation AND the banks, but even a conservative estimate suggests that a.r. is large enough going forward to pay the roughly $50m to the banks and the few million in wages. The banks are trying to get their money out pre-bankruptcy (where they will be further down the line depending on the structure of the loan(s)) and it's at the expense of associates, staff and the buildings housing Heller.

89: Following up on 104, in announcing their "orderly wind-down, Heller management said AR was more than double debt ($118M to $50M), and they expected to recover 90% of the AR. So there is money. Actually, there should be even more money available to pay employees and other creditors that Heller management/shareholders aren't publicly talking about and aren't likely pursuing because shareholders don't want the value of their books discounted by their new firms. See, Jewel v. Boxer.

100 -- words fail me. A 'worthy cause'? How about some of the staff stiffed on vacation pay? Pay that they EARNED, often deferring vacations due to case schedules -- unlike the princely sum paid to a man who never did anything useful or substantive. He did, however, have the good fortune of being part of the 'in crowd' in San Francisco -- and those roaches continue to take care of themselves above all else. What about the Chief of Practice Excellence? What exactly is she doing NOW? She's managed to outsource the entire firm -- isn't her job finished?

Hey 99, you are absolutely correct in how you feel about Meadows.......The money Hungry Bastard is what I would refer to him as

Where are the VLG partners that aren't joining Cooley planning to go? Does anyone know yet?

108: Unconfirmed reports posted on Evilesq. claim Bruggeman-Hatch has been whisked away by
Gunderson Dettmer. No word on balance on the group.

As an ex-Heller Ehrmanite staffer, and having read all 109 comments, I feel compelled to add my .02. I made it out with a month to spare! When the shareholders went on their firm-wide retreat this year in Colorado Springs - spending hundreds of thousands of $$$ no doubt, I was appalled. With the firm in the state even we knew it was in (regardless of the smoke we were, and continued to have right up till the end, having blow up our asses) it was really hard to believe they would WASTE that kind of money on a social get together.

My heart bleeds for my friends left behind - thank God for my friend who left 5 years ago and keeps up with the haps, who told me 6 months ago to get out before the ship sank - I am SO glad I listened to her even though it was very tough leaving my long-time home.

To 106: We always wondered just what in the hell she was doing - what a waste of space, time and $$$.

At least Jean Jones left Thursday of last week, so that roach is off the payroll -- Executive Director indeed!

Was there any purpose to 110's post other than to brag about how he/she got out and thus is not suffering like everyone else is?

To Our Employees:

Many of you have asked whether you are going to be paid for the services you are continuing to render to the firm. We have received the assurances of our banks -- Bank of America and Citibank -- that (with the exception of shareholders and former shareholders) you will be paid through at least Friday, October 10, 2008. Should you terminate your employment prior to that date, you will be paid through the date of termination.
We have asked our banks to confirm that those who remain employed by the Firm beyond October 10 will continue to get paid, and we hope to receive that assurance as well in the very near future.
Unfortunately, despite our fervent and repeated pleas, our banks continue to withhold their approval for paying employees accrued vacation pay. Inasmuch as our banks now control how we may use our cash, our hands are tied. The Firm recognizes its obligation to pay employees accrued vacation pay as legally required and we intend to do so as soon as circumstances permit.
We appreciate your understanding and support during these difficult times.

The Dissolution Committee/jrm

"Let's file suit against all of the partners, the majority of whom were not responsible for Heller's downfall and who also are suffering financial losses from this, probably far in excess of what any associate or staff member is suffering. As long as we get every last dollar, who cares about anyone else, right?"

Do you think any of said partners ever let a dime go in their lives? Give me a break. Those people are in the position they're in because, at some level, they're total hardasses. These are the same people who turn in a receipt for a $.50 cup of coffee while they're on the road.

Yes, the partners may lose more money from this, but that is only because they were making several times more than anybody else at the firm was making! As another poster pointed out, they're not going to be in foreclosure or be financially devastated by losing their health insurance because of this. It is obnoxious and entirely out-of-touch to compare the fates of associates and especially staff to those of shareholders.

112: Probably not in YOUR opinion, but this is an open forum and we're both entitled to express ourselves. And I was not bragging - I feel totally lucky and blessed. Why me and not the others? I don't know. Maybe because I had the guts to leave while the getting was good.

113 - Do you think the email means we will be getting our October 10 paycheck (which pays us for time worked through October 3), or that we will get two more paychecks, one on this Friday, and one on Oct 24?

113 - Do you think the email means we will be getting our October 10 paycheck (which pays us for time worked through October 3), or that we will get two more paychecks, one on this Friday, and one on Oct 24?

112: So I should wish I was still there so I could suffer too? I had the guts to get out instead of hanging on to the fairy tales the management was spinning?

115: You and your "guts" go start a "gloat " forum somewhere. From this Heller employee: Get the fuck out of here. Your opinion is not valued, and reveals nothing but your narcissistic nature.

112: So I should wish I was still there so I could suffer too? I had the guts to get out instead of hanging on to the fairy tales the management was spinning?

110/115/118/120, don't be an idiot. No one said you had to wish you were still there. Just that you could try being a decent and compassionate human being who does not feel the need to rub the current associates/staffs' collective noses in the fact that they're in trouble while you're not. And especially that everyone could do without your not-so-subtle suggestion that everyone still at Heller is there because they were too weak or stupid to get out at the same time you did.

-Non-Hellerite

#114 saying that by vitue of being a partner one is a "hardass" is like saying by virtue of being a surgeon, one is an ego-manic with god-complex. It may be true sometimes but it's not always true. Some partners DID stay with the firm out of loyalty and a desire to do the right thing.
No one blames you for attempting to get what is owed you but don't try to say partners are all the same.

122 = partner. They're all the same.

#122= not a partner; not even an attorney (thank god).

What about VLG partners Glass, Tonsfeldt, Feldstein, Hendricks, Kim, and Appelman? Does anyone know where they're headed?

116/117 - "paid through October 10th" means that you receive payment for all the days up to and including October 10th. This work week from today through Friday, October 10th, however will not be on this Friday's check. This current work week will show up on the October 24th check since payroll always lags by one week.

OK, OK, OK - allright already. I give! Uncle! I'm a narcissistic jerk, OK? I have been duly chastised. Apologies to those I have offended. All that said, I'm still glad I left. Ex Heller Ehrmanite staffer.

127: You've succeeded in making us glad you already left.

Hey 127 - You must have been a pain in the ass when you were at Heller. I'm sure there were many that were glad you left! That said, please don't add anymore annoying comments. GET THE HELL OUT!

125 - apparently there was a conflict due to a recent deal where Heller was opposite Cooley.

http://www.law.com/jsp/article.jsp?id=1202425036071

58, 61, 94, 95, 99

Heller Drone here. I know the ex-CIO at Heller doesn't need my help in defending him but I'm not sure all the facts are out on the table about his departure.

There is no proof that he rec'd all his accrued vacation - I know that another Chief that left at the same time did not even get paid. Period.

Also, contracting back to Heller doesn't mean the same as putting in a full 40-hour week. This might be for 5-10 hours a week. There are some issues with liquidating large pieces of equipment that need to be negotiated in order to get the best price for the asset and this bring money into the Heller coffers. This shit won't sell itself. And I know that the ex-CIO is one of the best negotiators with vendors that I've ever seen.

I'd like to believe that the ex-CIO is on the level about this as much as he has been on the level with me in the past. And, I know first-hand that Heller's technology was far superior to most firms - ask any ex-Hellerite who has gone to other firms and see what they say about basics such as a DMS and templates.

I for one am going to give him the benefit for the doubt for now. What I don't understand is what a Chief of Practice Excellence or Chief Marketing Officer are still doing on the payroll, if in fact they still are, since these positions have little use - in my mind - during a dissolution.

Heller Drone
Cruise Director

Insider talk

They will be walking to court house this week.

132: you are correct, sir (or madam)...

132 or 133: Can you provide any further detail? If so, please do.

What happened to the VLG associates? Did they get left behind?

Any word on where the SF VLG people are going? Or, the SF Real Estate group?

131, Thanks, Heller Drone. I agree with you completely. My experience with the ex-CIO was also of high quality. My question is: Why do we need FW-Attorney Recruiting, or for that matter, any recruiting department!! Cut them off now.

131, Thanks, Heller Drone. I agree with you completely. My experience with the ex-CIO was also of high quality. My question is: Why do we need FW-Attorney Recruiting, or for that matter, any recruiting department!! Cut them off now.

131, Thanks, Heller Drone. I agree with you completely. My experience with the ex-CIO was also of high quality. My question is: Why do we need FW-Attorney Recruiting, or for that matter, any recruiting department!! Cut them off now.

137/138/139, that is one of the stupidest things to have been posted in this thread. By that same logic, why not get rid of extra secretaries who aren't needed due to attorney departures? Extra accounting personnel whose jobs could be done by someone else? Oh wait, that pesky WARN Act thing that's making sure *you* keep getting paid for 60 days actually applies to others as well!

140 - Perfect response to 139. Seems that if 139 has so much time on his/her hands to blather on on this site, he/she should go too. It's sad to see someone ready to throw others under the bus in this really horrible time. Everyone is in dire straights right now, and should be trying to help one another rather than trying to get someone else kicked to the curb. 139 should be ashamed.

132, 133: False rumors.
Appear to be working to keep the doors open & continuing wind down. Keeping the banks calm still the hard part.

Re Robert Meadows, ex CIO: I've been told, by someone who is in a position to know, that he resigned in order to get his (admittedly large) salary off the books to free up more money for the rest of us, and is now working for free. Not exactly the greedy SOB portrayed above.

And for those who think he didn't do anything: who are you comparing him to? He is head and shoulders above any other law firm CIO I've worked under. A little hard-nosed, sure, but that's part of what made him effective. And no, this is NOT Robert Meadows.

- Low-level IT Peon

And it keeps getting better day by day...

Sent to All Hands on 10/08/2008 10:15 am PDT

As you know, the shareholders voted to dissolve the firm on September 26, 2008. Wind down operations continue under the Dissolution Committee with the employment of most employees ending on or before November 28. The firm’s dissolution on September 26 caused the Heller Ehrman LLP 401(k) Retirement Savings and Profit Sharing Plan to terminate.

In order to assure an orderly termination process and a fair and equitable allocation of costs associated with the plan termination, the Dissolution Committee has decided to temporarily freeze the Plan. During this temporary freeze period, you can continue to access your plan account and change investments through Vanguard. However, effective immediately, no new contributions or loans will be permitted and no withdrawals or distributions requests will be processed. If you have an outstanding loan, your loan payments will continue to be deducted from your paycheck and applied to the loan balance, while payrolls are processed. More details on loan repayments will be available shortly.

Once the Dissolution Committee is confident that all costs of plan administration paid, the freeze will end. You will then need to decide what to do with your plan savings. Additional instructions will be sent to you about your distribution options at the appropriate time.

Remember to visit the Plan’s website at: http://hewm.vanguard-education.com/ekit/
Updates regarding the Plan will be posted here where they will be easily accessible to you after you leave the firm.

Questions?
If you have any questions about this notice, please contact ____or Vanguard Participant Services at 800-523-1188. Additional plan information is available on the Heller Ehrman LLP intranet site.

Question,

I thought these lawyers were BoB or TTT or whatever. Why aren't they simply securing a loan for short term debt from the fed?

Or do they even care?

#100, I agree with #103. You don't know Robert Meadows, work for free and giving to a charity., bah. I guess he could afford to do either since word on the street was that he was earning $500,000 a year. Highest paid CIO in the bay area.

I know this thread is very old, however, I just want to close the circle re #100's idiotic statement: "I happen to know Robert Meadows and he is a nice guy.... If, in fact, he has been "hired back" as a consultant, it would only be out of his honorable sense of obligation, not to collect a paycheck or screw other staff, but to do the decent and right thing - help the S.S. Heller as much as possible - and knowing him, if he was to be paid as a consultant, he would either decline the salary, or donate it to a worthy cause. He is not a greedy bastard - only one man trying to do the right thing." Judging from the recent Statement of Financial Affairs, this "nice guy" has received $115,089.98 since October. Shall we have a pool on how much went to a worthy cause (other than himself)? I call zero!