We have been following the sad tale of a University of Michigan 2L and a U-M professor who got caught up in a prostitution scandal. Yesterday, the Michigan 2L responded to some of the comments that have been made about her.
Today, the professor involved asked ATL for equal time and an opportunity to tell his side of the story. In a letter entitled: “Have you considered whether she may be simply lying?” and sent to the entire law school, the professor says:
I wish to raise with you the claim that, for whatever reasons, your student is simply lying. Allegations must be substantiated with facts; here are the facts as they emerge from the police report (which, as I am sure many of you know, anyone is entitled to get from the police).
We reprint the letter in full after the jump.
And just to be clear, this will conclude our coverage of these events. Both parties have had an opportunity to say their piece, and we’d like to leave it at that.
We’ve previously reported on law firms having difficulty getting clients to pay their bills. It’s not just happening to firms working on deals that go bust; it has also happened to a firm representing a celeb after his marriage went bust. From Am Law Daily:
Blank Rome is suing rapper/actor/activist Mos Def for over $60,000 in unpaid legal bills stemming from his 2006 divorce from Maria Yepes.
The couple ended their 10-year marriage that year in a Brooklyn court, with Judge Sarah Krauss pleading with them to settle their differences outside her courtroom.
Reports say that the Brooklyn-born Mos Def (real name: Dante Smith) owes the money to Blank Rome in the form of unpaid fees and retainers. The Emmy, Golden Globe, and Grammy award-nominated entertainer retained lawyers from the firm’s well-regarded matrimonial practice, which advises high-end clients on divorce, mediation, property distribution, paternity, visitation rights, and trusts and estates.
This is Mos Def’s second month in a row of legal troubles. In November, Las Vegas police issued an arrest warrant after Mos got in a scuffle with a photographer. In more bad news, his portrayal of Chuck Berry in the recently released music biopic extravaganza Cadillac Records was panned by the Los Angeles Times.
We wonder if this will make him rethink the title of his upcoming album, rumored to be titled Ecstatic.
Let’s say you meet a woman. You like her, she likes you, and eventually you move in together. She helps around the house and, you know, “helps” with other things too. Let’s say that over the course of a year, you “spend” $10,500 on that woman.
How would you explain where that money went, to say an account or on your tax forms?
Well, if you are Mr. Howard Shih of California, you call the $10,500 “wages” and try to get a tax deduction.
That is the situation that the U.S. Tax Court recently wrestled with. Except the proceeding was not directed at Mr. Shih for claiming a deduction, instead the case was about whether the woman (Ms. Jue-Ya Yang) should have reported the $10,500 as “income.”
(Dear God: That whole “The Law” idea you had is brilliant. What a great premise for your “Earth” sitcom. Don’t change a thing! It’s comedy gold.)
After the jump, TaxProf Blog walks us through the difference between wages, gifts, and illicit prostitution.
We are pleased to announce that the Firm will award year-end bonuses to associates and counsel as follows. Bonuses will be based on previously communicated criteria and are expected to be paid in January 2009. Associates who joined the Firm subsequent to January 1, 2008 and prior to October 1, 2008 will receive a pro-rated portion of the bonus.
The reference to “previously communicated criteria,” we’re told, is a reference to CWT’s hours requirement.
* A couple is suing United Airlines for “overserving” the husband by serving him red wine every 20 minutes on the flight. They say this is what caused him to beat his wife on the way to customs. [Chicago Tribune]
* “Federal judges in some parts of the United States are delaying the swearing-in of new citizens, apparently so that courts can keep millions of dollars in naturalization fees paid by immigrants, according to a new government report.” [The Washington Post]
* A Rhode Island family sued their cable provider for hooking up the Playboy channel, which plays hardcore porn. [Courthouse News Service]
* Investors in Madoff’s ponzi scheme might be able to get back some of their money by filing for a U.S. tax refund. As if the U.S. government isn’t paying out enough money these days…[Bloomberg.com]
* The high court in Europe says a UK couple should be bound by the ruling of judge in southern Cyprus that they demolish their vacation home. The house is built on land that belongs to a Greek Cypriot who claims it was taken from him during the Turkish invasion in 1974. [BBC News]
To balance out word of the robust O’Melveny bonuses, here’s some bad news out of California. Earlier this week, Gunderson Dettmer (boy I miss “ad”venture capital) laid off a number of junior associates. As veterans of the heady dot-com days may recall, Gunderson put itself on the map back in 1999 by leading the charge to $125,000 starting salaries.
Gunderson did not respond to multiple requests for comment, made yesterday and today, so we don’t have an official number of new people looking for work. But two sources claim that the firm laid off half of its first-year class (five out of ten associates) on Monday, plus an additional but unknown number of more senior attorneys. These layoffs are, according to a tipster, “on top of performance-related attrition / dismissals throughout the fall.”
Some of those laid off this week were stub first-years, i.e., class of 2008 from law school. As Chris Rock might say, “here today, gone today.”
This should not come as a great surprise, but let’s go ahead and close the loop. From the WSJ Law Blog:
Nearly two weeks ago, mere hours after Marc Dreier was arrested up in Canada for allegedly impersonating an in-house lawyer at a pension fund, lawyers at the eponymous law firm were heralding its doom. “It’s over,” said one litigation partner at the time.
On Tuesday, the predictions came true; Dreier LLP filed for Chapter 11 protection in bankruptcy court in Manhattan. In its petition, filed by Stephen Shimshak and Brian Hermann at Paul Weiss — where the receiver in the case, Mark Pomerantz, also hangs his hat — Dreier claims to have liabilities tallying between $10 million and $50 million.
The best reading in the petition is the list of creditors. Seems Mr. Dreier hadn’t been keeping up with the firm’s bills. Among those allegedly owed: the landlord of 499 Park Ave. ($908k); West Publishing ($441k); American Express ($323k); PR firm Van Prooyen Greenfield ($274k); ABM Janitorial Services ($89k); and AT&T ($81k).
Seriously, though, it’s a good sign for the firm, even if it may not be a lucrative engagement — the Treasury press release reports that “total cost for the firm’s services is not expected to exceed approximately $500,000.” It raises the possibility that rumors of the firm’s demise are greatly — well, maybe not greatly, but somewhat — exaggerated.
It’s getting ugly out there. For the first time since 2005, associate bonuses at Wachtell Lipton have dipped below 100 percent of base salary.
For those of you who aren’t familiar with the subject, here’s how bonuses at WLRK work. First, they’re lockstep, not tied to any billable-hours requirement or performance review. Everyone in the same class receives the same bonus.
Second, Wachtell bonuses are calculated as a percentage of base salary. Sometimes the percentage is the same from class to class; sometimes it’s not. In 2006, for example, there were divergences from year to year. When there are divergences, they generally favor seniority, with more-senior associates receiving bonus percentages that are higher than those given to juniors.
In 2006 and 2007, total bonus compensation at Wachtell (including midyear bonuses in 2006) clocked in at or above 100 percent of base salaries . This year, however, the bonus percentage sank below that threshold. We don’t have the exact number, but we’re hearing around 70 percent of base salary — “good” and “better than expected,” say two sources, but not as good as recent years.
(If this figure isn’t consistent with what you know, please email us. Please mention the class year that is the basis for your information, since sometimes the bonus percentage varies from class to class. Due to that variability, plus the lack of a firm-wide bonus memo, bonuses at Wachtell are less transparent than at other firms.)
Recall also that Wachtell base salaries are on a scale that is slightly above market. First-year associates at WLRK earn a base of $165,000 rather than the usual $160,000 (no Latham shenanigans here). A base salary of $165,000 and a 70 percent bonus would bring total compensation for a (non-stub-year) first-year to just over $280,000.
A Wachtell associate earning under $300,000 is a sad thing. But these are sad times.
Even the Wachtell holiday party was scaled back. More details, plus predictions about the firm’s future, after the jump.
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
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 six years. You can reach them by email: email@example.com.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
If your firm is in ‘go’ mode when it comes to recruiting lateral partners with loyal clients, then take this quiz to see how well you measure up. Keep track of your ‘yes’ and ‘no’ responses.
1. Does your firm have a clearly defined strategy of practice groups that are priorities of growth for your office? Nothing gets done by random chance, but with a clear vision for the future. Identify the top practice areas for which you wish to add lateral partners. Seek input from practice group leaders and get specifics on needs, outcomes, and ideal target profiles.
2. In addition to clarifying your firm’s growth strategy, are you still open to the hire of a partner outside of your plan? I’ve made several placements that fit this category. The partner’s practice was not within the strategic growth plan of my client, but once the two parties started talking with each other, we all saw how it could indeed be a seamless fit. Be open to “Opportunistic Hires.” You never know where your next producing partner might come from, so you have to be open to it. I will be the first to admit that there is a quirky element of randomness in recruiting.
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