Archive for January 2009

Staff Layoff Watch: A Roundup

By Elie Mystal

staff attorney contract attorney doc review.jpgA lot of pain has been dealt out to support staff at various law firms recently.

On Friday, Akin Gump slashed their support staff, laying off 65 employees. The WSJ Law Blog reported:

“There are no planned attorney layoffs,” said [Sheila Turner, a firm spokeswoman]. “But in these difficult times we of course expect to monitor the economy and staff the firm accordingly.”

Is the promise that Akin Gump won’t fire attorneys something that people can rely on? Don’t forget that Akin Gump is one of the few firms that admitted to rescinding offers to summer associates.

Meanwhile, in Indianapolis, the firm Ice Miller is making a two percent reduction in their workforce. Indiana Lawyer Daily reports:

“Over the last few months, we have been engaged in a thorough review of all aspects of our business operations in an effort to increase efficiencies and productivity to better serve our clients,” [Chief managing partner Byron Myers] said in the statement. “As a result of that review, we determined that we could consolidate some of our internal processes which resulted in much more efficient staffing requirements.”

This is the third firm in the past two months to cut support and administrative positions. Bose McKinney & Evans cut 11 support positions Jan. 9, almost 8 percent of its operational staff. It was a move that didn’t involve any attorneys but was something that law firm leaders said was necessary because of the economy.

Skadden joins the party after the jump.

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Barack Hussein Obama: 44th President of the United States of America

By Elie Mystal

Obama 3.jpg

No country does the “peaceful transfer of power” quite like the U.S.A.

Associate Bonus Watch: ‘Mother (Hughes) Hubbard’ Does Better Than Last Year

By Elie Mystal

law firm associate bonus watch 2008 biglaw bonuses.jpgWhen Hughes Hubbard released bonus information last year, a lot of associates were angry. Last year, Hughes Hubbard tied the “special bonus” to billable hours.

At the time, the firm promised that 2008 bonuses would be better.

Of course, that was before the great 2008 whatever the hell we’re living through. Few expected HHR to keep their bonus promise. But the structure that HHR released Sunday seems very generous and fair in light of market conditions:

Class of 2001 and above:

Tier 1: $32,500

Tier 2: $65,000

Tier 3: $85,000

Tier 4: $105,000

Class of 2002:

Tier 1: $30,000

Tier 2: $60,000

Tier 3: $80,000

Tier 4: $100,000

Class of 2003:

Tier 1: $27,500

Tier 2: $55,000

Tier 3: $75,000

Tier 4: $95,000

Class of 2004

Tier 1: $25,000

Tier 2: $50,000

Tier 3: $70,000

Tier 4: $90,000

Class of 2005:

Tier 1:$22,500

Tier 2: $45,000

Tier 3: $ $60,000

Tier 4: $75,000

Class of 2006:

Tier 1: $20,000

Tier 2: $40,000

Tier 3: $55,000

Tier 4: $ 70,000

Class of 2007:

Tier 1: $17,500

Tier 2: $35,000

Tier 3: $50,000

Tier 4: $65,000

Tipsters are happy:

That’s pretty sweet – everyone’s pretty happy for now (although 2009 bonuses and salaries are still “under consideration”). Tier 1 is 1950 hours, tier 2 is 2100, … tier 3 is 2300 and tier 4 is 2500. … Since HHR counts pro bono hours 1 for 1 as billable, and a number of associates have TONS of pro bono it’s not quite as hard to meet the “tiers” and rake in a pretty sweet bonus.

Good news for Hughes Hubbard people. Congratulations.

Read the full memo after the jump.

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The Depression Is So Freaking Depressing (Part I)

By Hope Winters

Collectively Depressing Soul.jpgSo…. Here’s The Thing….

It’s kind of like what Collective Soul said a decade ago, when things were just fantastic:

Are these times contagious?

I’m never been this bored before.

Is this the prize I’ve waited for?

These days, it seems like all my friends are depressed on account of the Depression. (Or the “recession,” for those ostriches who choose to bury their heads in the sand.) It certainly doesn’t help that CNN keeps slapping Obama into FDR’s car or that every reporter declares 600,000 jobs were lost today or the “Dow hasn’t dipped this low since 1929.” Good lord. No wonder no one is spending. I’ve stopped reading the papers. It’s all just widespread panic. Pretty soon they’ll be bringing polio back, too.

And the law firms. Wow. Who ever would have thought those blue-blooded Ivy Leaguers who were doing filings and writing law review articles about all those “complex financial instruments” would now be unemployed? And each day there are more and more layoffs. Where are the acquisitions? And where are freaking derivatives? I mean you always need lawyers, right? And what: associates doing paralegal work? They don’t know how to shepardize, much less tab and hole-punch briefing books. Geez.

The Depression takes its toll, after the jump.

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Morning Docket 1.19.09

By Eliza Gray

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* Civil rights leaders reflect on Martin Luther King. [ABC]

* The E.U. slammed Microsoft in an antitrust case. [The Washington Post]

* At least ten percent of the Guantanamo population has been deemed innocent, further calling the prison’s legitimacy in to question. [The New York Times]

* SCOTUS added 6 new cases to the docket Friday. Among their upcoming decisions, is whether states should be able to enforce their own non-discrimination lending laws against national banks. [The Washington Post]

* A San Francisco federal judge’s decision revives discussion about the legality of Bush’s wiretapping program. [San Francisco Chronicle]

* Kirkland & Ellis will advise billionaire Paul Allen’s Charter Communications Inc. on potential bankruptcy. [Bloomberg.com]

Happy Martin Luther King Jr. Day!

By Elie Mystal

martin luther king.jpgToday we celebrate the birthday of Dr. Martin Luther King, Jr., the pioneering civil rights leader. If you’re not at work, we hope that you are enjoying the day off. (We are around, but will be posting less than usual.)

If you are at work, be proud. We’re pretty sure that equal opportunities to be productive cogs in the capitalist machine, regardless of race color or creed, were part of Dr. King’s dream.

If you are looking for something to do, we suggest that you treat today as an opportunity for public service. You can look up a service project in your area at MLKDay.gov or you can join the incoming president.

Happy Martin Luther King Jr. Day!

Martin Luther King, Jr. Day of Service [MLKDay.gov]

Non-Sequiturs: 01.16.09

By Eliza Gray

indians in the lobby.jpg* Wow. There’s also a blog focused on Native American legal issues. We hope they are making progress on the “Give Us Back Our Goddamn Land v. People Who Couldn’t Hack It In Europe” case. [Native American Legal Update]

* There could be a tax problem with Obama’s mother-in-law living in the White House. Of course, there’s also the “how can you possibly have sex when your mother-in-law lives in the same house” problem, but I’ve never done it with a unicorn so who knows? [TaxProf Blog]

* Which degree better prepares you to be President? A J.D. or a M.B.A.? [Washingtonian]

* Think of it this way Gen Y: maybe someday somebody will write a Greatest Generation book about you! Think about it, isn’t about time we went over and beat the crap out of Prussia again? That’ll end the recession. [What About Clients?]

* Colin Farrell was definitely not on cocaine … at the Golden Globes … during his presentation … we think. [Popsquire]

Nationwide Pay Freeze Watch: Arent Fox Takes This Opportunity to Bring Back Deferred Compensation

By Eliza Gray

pay freeze salary freeze pay cut law firm.jpgA solid ice salary freeze is on at Arent Fox:

As a result of this comprehensive review, the Executive Committee (the “EC”) decided that based on global economic conditions, the Firm will freeze associate base compensation at the current 2008 rates for 2009.

But that’s not all:

Additional adjustments to the associate compensation system, also discussed below, include a somewhat more stringent 150-hour cap on non-billable creditable hours that can be increased only in limited circumstances, the reintroduction of a limited deferred compensation (“hold-back”) system, and modifications in the manner that hours are calculated for the purposes of qualification for productivity bonuses.

And if you’re concerned about bonuses:

The Firm will continue to make lump-sum bonus payments for above standard hours. Eligible associates who, during the evaluation year (or such later 12-month period as may be selected by the Firm), record more than 2050 billable hours, 2150 billable hours, 2250 billable hours, or more than 2350 billable hours will be eligible to receive productivity bonuses as follows.

So if you do bill 1950, you’re not getting any bonus at all. In fact at 2050 juniors are only getting $5K (considerably less than what juniors are getting at Cravath). Even 2250 hours doesn’t guarantee you a full Half-Skadden bonus.

No matter how annoyed you are at your firm’s pay structure, there always seems to be at least one other firm willing to pay a little bit less.

And that’s not even the interesting part. More on that after the jump.

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Lawsuit of the Day: Hired Help v. Eddy Curry

By Elie Mystal

Eddy Curry lawsuit.jpgAs you might have heard, New York Knicks atrocious waste of salary cap space star center Eddy Curry has been sued by a former employee. We all knew that Curry was a 6’11” behemoth of a man who is afraid of grabbing a rebound. But some of the allegations contained in the complaint against him are more shocking than his inability to play 20 minutes without needing an oxygen mask:

18. The plaintiff was further subjected to humiliation and intentional acts of sexual harassment discrimination by the Curry during the course of his employment.

19. On more than one occasion in the last year of plaintiff’s employment, Curry approached him, in the nude, and tried to solicit him to engage in homosexual acts with him by telling the plaintiff “look at me, Dave, look” and “come and touch it, Dave.”

And while we’re here:

20. Curry directed the plaintiff to perform humiliating tasks outside the scope of his employment, such as cleaning up and removing dirty towels that he “nutted all over” so that his wife would not see them.

We should say that Curry strenuously denies all of the allegations contained in the complaint. And teammates like Quentin Richardson and David Lee have come to Curry’s defense.

But wait ’till you get a look at the plaintiff’s lawyer, after the jump.

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Musical Chairs: Kathy Ruemmler from Latham Back to DOJ

By David Lat

Kathryn Ruemmler Kathryn H Ruemmler Kathy Ruemmler Latham Watkins.jpgSuperstar litigatrix Kathryn Ruemmler, a litigation partner at Latham & Watkins and an Enron prosecutor before that, has been picked to serve as Principal Associate Deputy Attorney General in the Obama Justice Department. That title is a mouthful, but lawyers inside the Beltway know it’s a Big Deal.

The revolving door between the DOJ and Latham swings again. Ruemmler has traded places with another fierce female litigator: Alice Fisher, who rejoined the firm after heading up the Criminal Division.

As for Ruemmler, the government’s gain is Latham’s loss. Says one LW tipster: “She’s a really good lawyer, and a genuinely nice person. We’re very sorry to lose her.”

Kathy Ruemmler isn’t just a genial genius; she’s stylish, too. From the WSJ Law Blog, reporting on a day of the Ken Lay trial:

Speaking of footwear, the boldest fashion statement of the day — possibly rivaling O’Melveny paralegal Bill Evans’s goth getup for the gutsiest sartorial move of the week — came from the government’s Ruemmler. The deputy director of the Enron Task Force, who won convictions against four Merrill Lynch bankers in the 2004 Nigerian Barge case, paired a conservative gray suit with stunning 4-inch bright pink stiletto spikes.

Litigatrix indeed. Just because you work for the DOJ doesn’t mean you have to shop at DSW.

There’s a lot of diversity in Obama’s Department picks so far. Eric Holder, nominated to serve as Attorney General, is African-Amercan. Elena Kagan and Dawn Johnsen, nominated to serve as, respectively, Solicitor General and head of the Office of Legal Counsel, are women.

The full memo about Ruemmler’s move, after the jump.

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Legal Eagle Wedding Watch 1.11: Dream Dean

By Elie Mystal

champagne glasses small.jpg

Twenty-seven-year-old hottie marries much older non-hottie: Normally a match like this would be explained by the groom’s (1) job at Goldman, (2) trust fund, or (3) peerage. But no, this groom is (drumroll) the associate dean for finance and administration at Yeshiva’s Cardozo School of Law. This is how bad the economy is, folks: Attractive women are marrying associate deans of non-T14 law schools.

Here are this week’s finalists:

1. Adrienne Lockie and Adav Noti

2. Inna Dexter and Benjamin Nussdorf

3. Arlene Hong and Darren Duffy

For our analysis of these couples, click on the link below.

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Job of the Week: Private Equity Is Still Alive

By Eliza Gray

Job of the Week Lateral Link ATL logo.gifWith all the terrible financial news, maybe you have forgotten that things like capital markets and private equity still exist? Job of the Week is here to remind you of your in-house options. Because of Lateral Link’s outstanding reputation with legal recruiters, Lateral Link members have a significant advantage when seeking a new position. In fact there are dozens of Lateral Link members currently interviewing for positions or with offers outstanding. Membership in Lateral Link is free and you can apply at www.laterallink.com.

Title: Assistant General Counsel

Location: New York, NY

Description: A rapidly growing, entrepreneurial mezzanine debt and private equity firm headquartered in New York is seeking an assistant general counsel. The ideal attorney will have 2-3 years experience in a top tier law firm working with financial institutions or private equity/hedge fund/investment management clients. The attorney will work with the Vice President, General Counsel primarily as a corporate generalist focusing on a variety of areas, including:

· Corporate projects and legal issues relating to private investment funds, including business development company & private equity fund formation/structuring and related documentation; interaction among investment management company, administrator and funds; compliance with rules and regulations set forth by regulatory authorities in the United States; strategic domestic and international tax considerations; and ongoing corporate matters related to entering and exiting portfolio company investments.

· Corporate finance and capital markets matters, including syndicated credit facilities and private placements of debt and equity securities, and related documentation.

· Board related activities, employment matters, intellectual property matters, and general corporate responsibilities.

For more information about this position or to apply, please see Position 10243 on Lateral Link. Current members can also contact their personal search consultant directly to discuss this position.

Nationwide Layoff Watch: Blank Rome Lays Off 12 … So Far

By Eliza Gray

blank rome summers no offers.jpgLast night and this morning, tipsters informed us that significant layoffs were taking place at Blank Rome. A firm spokesperson is now able to confirm the news:

As we continue to focus on helping our clients manage through these challenging economic times, and in order to position the Firm for continued success in 2009, it is important that we take the necessary steps to adjust our attorney and staff complements in the context of our clients’ current and anticipated needs. These are purely economic decisions – this is a group of talented attorneys and staff who have made valuable contributions to our Firm.

Our tipsters report that at least 12 associates and staff have been let go so far. But:

Also, there is an unconfirmed report that when this ends the total of layoffs will be 50. Good lord.

The firm could not provide us with official numbers of how many people will be let go by the end of the day.

But we do understand that the layoffs will affect all departments and class years — we know some non-equity partners have already been shown the door. Blank Rome’s Philadelphia office was hardest it, but layoffs happened in New York as well.

Maybe if Mos Def would pay his bills, this wouldn’t be happening.

Read the full firm statement after the jump.

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Associate Bonus Watch: Goodwin Procter Adopts Cravath Scale
… And A Salary Freeze

By Eliza Gray

law firm associate bonus watch 2008 biglaw bonuses.jpgGoodwin Procter just came out with their 2008 bonus news. Like other peer firms in Boston, Goodwin is going with a Cravath scale, though the firm does have a 1,850 hours requirement:

For 2008, we maintained our bonus eligibility threshold of 1,850 hours, though many of our peer firms set significantly higher thresholds for bonus eligibility this year. Attorneys who met the 1,850 threshold, which could be achieved through billable and pro bono work, were considered for bonuses, taking into account the factors noted above.

One very interesting note is that stub-first years will be receiving no bonus at all:

Target bonuses by class are listed below. Individual bonus awards may be above or below the targets based on the mix of relevant factors and will be prorated as appropriate for leaves. Because of their short tenure, attorneys in the class of 2008 who started in October were not included in the bonus program this year.

Onto the salary freeze after the jump.

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… And A Salary Freeze”

Economic Downturn Continues to Hammer Law Schools

By Eliza Gray

Will Work for Food 2 Above the Law blog.JPGKaren Sloan over at the National Law Journal has an interesting report on how the economic crisis continues to cause pain to the nation’s law schools:

Instead of an expected 1% budget increase, the dean of the Temple University James E. Beasley School of Law learned that she would need to cut about 2% of the budget for the current academic year. The reductions were necessary because the Pennsylvania government — facing a major budget shortfall — was preparing to cut funding to the university by more than 4%.

Great. Just when the declining legal market might suggest (ahem) a reduction in law school tuition costs, budget shortfalls make it almost certain that legal education will remain ridiculously expensive.

And if public schools are feeling the pinch, you best believe that private schools are crying tears of poverty all over your tuition check for this semester. More after the jump.

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Cleary Gottlieb Profits

By Eliza Gray

Cleary Gottlieb logo.jpgWe know what Cleary is doing for associate compensation: they are paying Cravath bonuses but have decided against freezing salaries. Is anybody interested in what the partners will be taking home this year? According to AmLaw:

Gross revenue is up roughly 8 percent to $965 million; profits per partner increased about 12 percent to $2.4 million. Revenue per lawyer, however, was basically flat, down less than 1 percent.

$2.4 million in this economy? Where do I sign up?

More on Cleary and money after the jump.

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Morning Docket 01.16.09

By Kinney Recruiting

small phone.jpg

* A “court” upheld the government’s authority to tap international phone calls and emails without a warrant. [The Washington Post]

* Would-be Attorney General Eric Holder’s confirmation hearing went well yesterday, and he will go for more today. [The Associated Press]

* Marc Dreier, the lawyer who sold hedge funds phony investments, wants to be released on bail. [Reuters]

* The Senate released the second portion of the bailout fund yesterday, giving Obama a tidy $350 billion to get the economy back on track. [The New York Times]

* In an effort to rally lending, President-elect Obama’s advisors are considering drastic proposals that would take toxic assets of bank balance sheets. [Bloomberg]

Funny Craigslist job listing makes us sad

By Kinney Recruiting

Craigslist.jpgApparently, many ATL readers are conducting their job searches via Craigslist, because this posting has appeared in our inbox more frequently than lobster references in the comments.

We’ve already mentioned it in Non-Sequiturs, but we’re returning to it to beg you to stop sending it to us, and to give you the story behind it. For those not in the know, here’s the legal job listing that many a job searcher has stumbled across:

Associate Attorney (Midtown West)

Reply to: job-991754136@craigslist.org [?]

Date: 2009-01-13, 5:41PM EST

Fast-paced 20-attorney law firm looking for an eager associate to join our growing practice. We understand that you may be a newly-admitted attorney looking for their first job. We also know that the economy is harsh right now. However, we are willing to give you a chance. Here are the details of this spectacular opportunity:

* Your salary will be $30,000 per year. We understand that this may be on the low end (since you probably are six figures in debt), but we will be able to give you unlimited opportunities for experience and you’ll be making six-figures soon enough. On the other hand, we will bill our clients $300 for every hour of your work; at least you will know your work is valued by us in several ways.

* There is no health insurance, but we have an on-site 2nd year medical student who will abide by the upmost professional standards take care of any illnesses or injuries that occur, both on-site and off-site.

* You will be expected to work 12 hour days, six (6) days of week. You will be afforded 1 week of vacation time, and three (3) sick days. Your vacation time is limited to the months of January and February, as we will need you to be in the office while the partners are taking their time off in the summer. The good news is that you will earn vacation and sick pay as soon as you start. The only holidays that the Firm observes are Christmas and Thanksgiving, but you must work a half-day, as we are a busy and important firm who adheres to our clients’ needs.

* Your bonus, if earned (by billing 2100 hours per year), will consist of a one-year membership to a “food-of-the-mouth” club of your choice. In 2008, every associate took advantage of this valuable program and has benefited greatly for their hard work and dedication.

Please email resume, cover letter, salary history, law school and college transcripts to the address above. We will also need you to take a drug test. All resumes and credentials will be held in strictest confidence

Ridiculous and hilarious, right? Obviously a joke? Well, we talked to the guy behind the ad — a contract attorney who’s looking for a permanent firm job himself — and he says he has received over 100 e-mails, including two from recruiting agencies, in response to his satirical listing.

Find out which recruiting agencies, and the story behind the posting, after the jump.

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Non-Sequiturs: 01.15.09

By Elie Mystal

GI Joe knows double posters must be stopped.jpg* California might start killing criminals again. [Johnny California]

* “America needs a tax code simple enough for the Treasury secretary to figure out.” [WSJ via TaxProf Blog]

* A South Carolina legislator wants to make it a felony if you use vulgar language around a minor. But don’t blame the great state of South Carolina for the idiotic things that are sometimes done in its name. [The Volokh Conspiracy]

* It would have been so much better if the mayor of Racine had just nailed a sheep. [Wonkette]

* In case you weren’t glued to a television all day, here are some highlights from Eric Holder’s confirmation hearing. [Above the Law]

* The fight to end double posting can be won. Knowing is half the battle. [Dealbreaker]

Howell Jackson Named Acting Dean of HLS

By Elie Mystal

Howell Jackson acting HLS dean.jpgHowell Jackson will be taking a stab at filling Elena Kagan’s shoes at HLS:

Howell Jackson has agreed to serve as the acting dean of Harvard Law School (HLS), subject to the U.S. Senate’s confirmation of Dean Elena Kagan’s nomination to serve as U.S. Solicitor General, President Drew Faust announced today. Jackson, the James S. Reid Jr. Professor of Law, served as the School’s vice dean for budget from 2003 to 2006.

Jackson credentials seem strong:

Jackson is a graduate of both Harvard Law School and Harvard Business School, and earned his undergraduate degree from Brown University. An expert in the field of regulation of financial institutions, Jackson has taught at the Law School since 1989.

Thoughts?

Jackson is named associate dean of research [Harvard Gazette]

Jackson To Serve as Acting Dean at Harvard Law School [Harvard Crimson]

Earlier: Breaking: Elena Kagan to Solicitor General