* California’s Supreme Court agreed to hear the case against Prop. 8. [Reuters]
* For all the associates who go crazy working late into the night in dark conference rooms dreaming of embezzling money from the firm–let this be a lesson to you. Employee Angela Marie Dees was arrested for stealing 1.67 million dollars from the California law firm Moore and Waxler. The crazy thing? The firm didn’t even notice until they did an audit. [mysuncoast.com]
* “Stung by outsize investment losses, some of the nation’s biggest companies are pushing Congress to roll back rules requiring them to put more money into their pension funds, just two years after President Bush signed a law meant to strengthen the pension system.” [NYT]
* A jury heard opening statements yesterday in the MySpace hoax case, the one where the suburban mother used a fake alias to terrorize a 13-year-old who killed herself as a result. [ABC]
* Even though bankers basically caused a world-wide recession causing thousands of lawyers to lose their jobs (thanks a lot), at least Barclay’s is giving the litigators some love. Barclay’s is suing a hedge fund for hiding $150 million in investments. [Bloomberg]
* Yesterday was National Toilet Day. Everybody who works on Wall Street already knew that. [UPI]
Former Cadwalader chairman Bob Link is being left off of the firm’s 2009 management committee. The news was told to the partnership during a meeting today. Link himself confirmed the news to AmLaw Daily:
Cadwalader, Wickersham & Taft’s former chairman and current managing partner Robert Link Jr. was not included on a recommended slate of candidates for the firm’s management committee given to partners today, a source at Cadwalader says.
The slate, recommended by the management committee, will not be acted on for another few weeks, the source says. Link, reached by phone, confirmed his name was not on the list.
“It really is part of our normal succession,” Link says. “It’s not something I’ve been part of planning for.”
Charlotte managing partner Jim Carroll is also out of the 2009 management loop.
The Lawyer, which first broke the news of Link’s ouster on Monday, reports that Cadwalader’s future is still very much up in the air:
But Link’s removal from power is far from the end of the story. Cadwalader has been reeling for months. Collapsed core markets, major lawyer layoffs and now a palace revolt, 2008 will go down as arguably the worst in Cadwalader’s 216-year history.
Inevitably, questions have been raised about the long-term future of the firm. How things play out later this week may offer some clues as to its shape, whatever that may be.
But one parting shot from CWT to the associates they laid off, after the jump.
The economy is in the toilet and law firms are scrambling to adjust. Usually this means “firing associates,” but DLA Piper has done something really interesting and brought changes to the partnership instead of firing associates:
Some 275 “income” partners who don’t have an ownership stake will be invited to join the ranks of 300 equity partners, provided each makes a capital contribution that could range up to $150,000, according to legal industry sources.
Look, for all we know associate layoffs could be right around the corner at DLA or any other Biglaw firm. But almost doubling the number of equity partners means that profits per partner will be squarely in the hands of each individual partner to generate business.
Legal industry recruiter John Cashman of Major Lindsey & Africa LLC says DLA’s move is unprecedented and likely to turn up the heat on attorneys to bring in clients — a crucial factor in partner compensation.
“It’s very clear to their (junior-level lawyers) it’s either up or out: We want business generators or worker bees. They want to send that message,” Mr. Cashman says.
* The ABA Journal bans a commenter and she immediately starts her own blog. I ban a commenter and he immediately sends me emails suggesting that I have an inappropriate relationship with my mother, but the grammar is perfect. Banned ATL commenters 1, banned ABA commenters 0. [Legal Blog Watch]
* Wow. I expect this from partners, but apparently clients also think that associates are fatted sacks of meat that are only good when they’ve been sliced, grilled, and served with a nice chianti. And that was before Skadden announced bonuses. [What About Clients?]
* Woman thinks women should stop acting like girls. [Law and More]
* Apple wins. ( /nods in silent deference.) [Legal Pad]
Look, I’m the last person on Earth to criticize somebody for getting out of the law firm life and following a dream. But I’m a little worried that “Jack,” who writes the blog Adventures in Voluntary Simplicity, might have lost a little bit of his grip on reality. I spent most of the morning reading Jack’s missives. It’s a bit like reading a Walt Whitman poem that’s been printed with letters cut out from various magazines.
But, despite his apparent madness, Jack is still gainfully employed as an attorney (he doesn’t say where). Law firm employment is of course something that Jack intends to discontinue. He’s got a whole plan he wants to execute so that he can leave his job by the end of 2009:
There is nothing inherently wrong with my job as a lawyer. In fact, for several years, I really felt that it was interesting and intellectually challenging. On the other hand, coming into work was a wonderful way to play adult and pretend that I knew all the answers that really mattered. Putting on expensive suits, traveling all over the world, representing important clients, knowing the location of expensive restaurants, etc…were all just a way for me to tie additional knots in an ever-expanding invisible chain of hopeless materialism. …
And then I started getting…well…bored. The mind-numbing effects of sitting in front of a computer for 12, 13, 14 hours a day 6, sometimes 7 days a week making very rich people even more rich definitely caught up with me. …
So here I am. Making hundreds of thousands of dollars a year in a job that infuriates me and gets me no closer to fulfilling my potential.
We expected this. Skadden has announced that they will discontinue the “special” bonuses from last year. Instead, they’ll be giving out the 2006/2007 standard package. From the memo, sent out by executive partner Bob Sheehan:
[W]e will pay the year-end discretionary bonus at the same levels by class seniority which associates received in 2007 and 2006. However, we do not think it is appropriate to repeat the “special” supplemental bonus that was instituted last year. That bonus reflected a strong and growing economy that contributed to a record level of profitability.
The Firm has historically paid its associates at the “top of the market” in their respective local markets. While we do not know what other firms will do this year with regard to paying a supplemental bonus, we believe that our bonuses this year should be limited to the year-end discretionary bonus. What we will do in the future years, will, of course, depend on business conditions at the time and competitive compensation.
You will receive a memo early in December discussing your individual bonus. We appreciate the efforts you have all put in this year. You have contributed enormously to the success that we have achieved.
That should pretty much set the market.
The 2007 bonuses weren’t bad. And Skadden isn’t laying people off. It’ll be pretty hard to complain if this is where the market ends up.
And, not for nothing, it shows good form by Skadden for telling people what to expect before the holiday season starts. That winter vacation to the Dominican Republic can now proceed full speed ahead.
A tipster reported a rumor today that we’ve heard a couple of times over the past week and a half:
Word on the street is that Mayer Brown had big layoffs today.
The problem is, that was the word on the street yesterday. And Tuesday. And last week the word on the street was that Mayer Brown associates would be on the street by Friday.
We’ve spent a lot of time sleeping on the street. At this point, we haven’t yet talked to one associate who has actually been laid off from Mayer Brown. Still, there’s an awful lot of chatter out there.
The state of New Jersey has reached a settlement with the popular online dating website, eHarmony. Under the settlement, eHarmony agrees to provide its proprietary online matching service to same sex singles.
In return, the state of New Jersey will not pursue a civil rights action against eHarmony that the state would surely win:
The company also agrees to ensure that same-sex users are matched via the same or equivalent technology as that used for heterosexual match-seekers, agrees to charge same-sex users the same fees, and agrees to offer the same service quality and terms of service as heterosexuals.
Unless somebody wants to argue that eHarmony is a religious institution, I think the law is pretty clear on this one.
More information about the settlement after the jump.
Hey, have you read Above the Law for like one single minute in the past month? If so, you probably know that we’re having this big blogger conference on March 14th at the Yale Club. Yeah, the Yale Club. You’ll be able to recognize me: I’ll be the only big… blogger guy surreptitiously holding a can of crimson spray-paint.
Speaking of coming, you should come. We’ve got CLE and all that. Click here to buy tickets to get CLE credit for listening to bloggers scream about stuff on the internet.
To refresh your memory, details on the panel that I’m moderating — almost entirely sober, mind you — follow.
My panel is called Blogs as Agents of Change, and we’re going to talk about whether all of these spilled pixels are actually making a difference. You know my view… just ask Lawrence Mitchell, but here are the panelists:
So you spent a considerable amount of time courting, selling and maybe even doing some friendly stalking of that attractive lateral partner candidate with a sizable book. After he or she ignored your emails and didn’t return your calls, a few weeks go by and you read a press release in the legal media announcing the recent move to a competing firm.
Rats. Another one got away from you. You cringe when you consider how much time was spent in meetings that did not bear fruit. Your heart aches when recall how you were led to believe this was a marriage made in heaven.
You have been rejected.
The sting of rejection is painful, even for fancy law firms. But you need to find a way that you can turn this disappointment into a legitimate learning experience.
No, this isn’t a pre-party before we come back next fall for the real thing. This IS the real thing. Quinn Emanuel is pushing the envelope on recruiting. The party is now. This is when you meet the partners and associates face to face. This is when we begin the dance that could land you an offer for your second summer BEFORE school starts in the fall.
First: You come to the party. Second: If you like us, you send your resume after June 1, 2014. Third: If we like each other, you get an offer.
We’re not waiting for fall. We’re not doing the twenty minute thing. This party is the real thing!
We hope you’ll join us, and look forward to meeting you.
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