Archive for February 2009

Morning Docket 02.04.09

seatbelt.jpg* Cash-strapped states may tighten their seat belt laws. More than a dozen states are considering switching to primary seat-belt enforcement–pulling over drivers just for not buckling up–in order to qualify for a federal incentive program. Ohio, for one, could get $26.8 million for changing its law. [Associated Press]

* New Jersey attorney Harold Hoffman sued a mail order company for fraud because the penis-enlargement device he ordered didn’t work as advertised. An appeals court dismissed his case over the Herculex because he failed to prove he suffered any “ascertainable loss.” And no ascertainable gain apparently. [The Star Ledger]

* Another Obama nominee bites the dust. All the Democratic tax troubles open the door for Republicans to accuse the Dems of being “cavalier about taxing other people because they do not abide by the tax laws themselves.” [New York Times]

* We thought Homewood Suites by Hilton was supposed to be a classier joint. The hotel was sued by a couple whose toddler choked on a used condom left in their room. [On Point News]

* The state attorneys general succeed in their campaign to get sex offenders kicked off MySpace. The social networking site just booted 90,000 from its ranks. [CNN]

Morning Docket is sponsored by PBwiki — an easy, affordable online workspace that you can use as a legal knowledgebase or to manage cases. Seven of the top 20 law firms in the United States are PBwiki customers.

Paul Hastings logo.JPGRumors have been flying into ATL about what’s going down in the ATL all week. We are now able to report that the Atlanta office of Paul Hastings is going through a round of layoffs. Most of our sources agree that approximately ten associates have been let go.

The ten people represent about 15% of Paul Hastings’ associates in Atlanta, according to many tipsters and the latest NALP figures.

The firm furnished ATL with this response:

As in previous years, there is some limited turnover taking place in our Atlanta office as part of our annual performance evaluation process, as well as from attrition.

Some tipsters have expressed concern over the way Paul Hastings is communicating with associates:

Nobody has announced anything, and this is all being done in total silence from the PH partners and management…

The layoffs have not surprised any of the tipsters we talked with. Many report that work is slow, bordering on non-existent, in the Atlanta office.

If this is happening in Atlanta, you have to wonder if there are stealth layoffs happening in New York or California. If you have any information, send it in to tips@abovethelaw.com.

Earlier: Prior ATL coverage of law firm layoffs

Haynes Boone logo.jpgExpanding during a recession? Hey the Empire State Building was constructed during the height of the Great Depression, and that worked out well.

Today, Texas readers demanded that we herald the merger of California IP boutique MacPherson, Kwok, Chen & Heid with Texas powerhouse Haynes & Boone.

We aim to please. According to the Haynes & Boone press release:

As part of its long-term growth strategy, Haynes and Boone, LLP is pleased to announce its addition of the 27 attorneys and professionals at MacPherson, Kwok, Chen & Heid, LLP, a leading intellectual property law firm with offices in San Jose and Orange County, Calif. With this addition, Haynes and Boone has almost 550 attorneys in 12 offices worldwide and becomes one of the few large Texas-based firms with offices in Silicon Valley and Orange County.

Perhaps the move into California will spell the end of Haynes & Boone’s war on office plants?

In any event, we’re happy to report some good news about a firm expanding and investing in its future, instead of trying to cope with the mistakes of the past.

Read the full press release after the jump.

double red triangle arrows Continue reading “Law Firm Merger Mania: Haynes & Boone Signs Up for New California Adventures”

kleenex.jpgWe’ve been providing extensive coverage of the economic troubles of Biglaw. But what about smaller firms in smaller markets? An ATL reader from a 35-attorney firm in St. Paul, Minnesota wrote to us about perk cuts in SmallLaw:

As of December, my firm no longer provides Kleenex. So now, when I am crying my bitter tears of disappointment about my career path, I am reduced to tearing out pages from various books in my office. I started with the Model Rules of Professional Conduct. It seemed somehow appropriate.

Even stranger? They actually raised our technology stipend this year, but cut the Kleenex.

We suspect Weil attorneys would sacrifice their Kleenex to get their tech stipend back.

Impressed by the tipster’s wit, we wrote a note of thanks, including an inquiry as to whether bathroom supplies were still pro bono.

There has been some concern regarding the toilet paper, but I think management is fearful enough of potential poo-flinging incidents that they wouldn’t dare tighten the purse strings that tightly.

sarah buckley and alexandra hutchings b & h.jpgThe number of attorneys looking for jobs continues to grow each month. And we can’t help running into them in New York, ground zero for attorney layoffs. We asked one Thacher refugee whether he had thought about banding together with other jobless legal eagles to start their own venture. “Too junior, not interested,” he replied.

Well, that’s not stopping two recent law grads from the University of Missouri-Kansas City. The Kansas City Star reports that Sarah Buckley and Alexandra Hutchings were unable to find work after passing the Missouri bar exam last year, so they’ve started their own firm: Buckley & Hutchings, LLC:

The question remains, though, whether they are an exception or — as more law school grads find a serious shortage of law firm jobs — the start of a trend.

Are these bright-eyed, bushy-tailed UMKC grads blazing a novel trail? More after the jump.

double red triangle arrows Continue reading “Can’t find work? Start your own firm.”

Supreme Court hallway Above the Law Above the Law Above the Law.JPGWe take back what we previously wrote about Justice Samuel Alito being “a bit secretive about his clerk hiring.” Presumably Justice Alito signed off on this press release issued by Seton Hall Law School, announcing the hiring of Lucas Townsend (Seton Hall 2004 / Ackerman (D.N.J.) / Trump Barry) as an Alito clerk for October Term 2009.

Congratulations to Townsend and to Seton Hall, which has placed its first graduate into a SCOTUS clerkship. From a tipster:

We just got this email [a slightly tweaked version of the press release] from the dean. Not bad for a school that most of the elitists on ATL would consider a TTT. Although SHU will never sniff the T-14, the school has been steadily climbing the U.S. News rankings, and I think this alum’s accomplishment might help that cause.

We also had the best showing of New York Vault 100 placement ever by this year’s 2L class. Things are looking good on this side of the Hudson.

Additional Supreme Court clerk hiring news, plus updated lists of Supreme Court clerks for OT 2009 and OT 2010, after the jump.

double red triangle arrows Continue reading “Supreme Court Clerk Hiring Watch: A First for Seton Hall”

McDermott logo.JPGI hope you weren’t planning on a “snow day,” because it is still raining law men.

McDermott Will & Emery just announced that they have laid off 60 associates and 89 staffers. A firm-wide memo just went out to MWE employees:

Our Firm performed well in 2008 and remains strong as we move into 2009. However, we are not immune to the continued deterioration in market conditions. The business of our clients has slowed and this has affected our own levels of activity, particularly in the transactional area. In response, the Firm is implementing today a reduction in force of 60 attorneys and 89 staff personnel. This decision was tremendously difficult given the high caliber of our people and the many strong, collegial relationships that exist within the Firm.

The open communication from McDermott is appreciated. In December, we reported that the firm laid off around 20 people on the down low.

Our tipsters report that some first years were caught in this latest force reduction.

We’ve already reported that McDermott has instituted a salary freeze (slurpee). The firm indicated that it would reconsidere the salary decision in March. I’ll open the line at 12-to-1 against March bringing better salary news.

Read the full firm memo (and see a screenshot) after the jump. If you just got laid off from McDermott, but are up to date on your taxes, you might consider sending your resume to Obama. I hear that he has some openings.

double red triangle arrows Continue reading “Nationwide Layoff Watch: McDermott Will & Emery Cuts 60″

Weil.gifFrom the department of obvious, Weil Gotshal & Manges managed to make lots of money last year. Gross revenue and profits per partner are up at the firm. AmLaw Daily reports:

Recession or no, Weil’s partners are far from suffering. Profits per equity partner were up 7.5 percent to $2.3 million, while the number of equity partners splitting the pie shrank for the second year in a row, from a high of 200 lawyers in 2006 to 184 in 2008.

We’re not sure how these numbers affect the tech stipend.

The strong profit numbers and high profile work still left associates with only Half-Skadden bonuses, but Weil has not historically been a market leader when it comes to that aspect of associate compensation.

Perhaps there is a good reason for that, revenue per lawyer actually went down at Weil in 2008:

Gross revenue at Weil, Gotshal & Manges rose slightly in 2008, with the firm managing modest growth in a punishing year. The New York-based firm brought in $1.23 billion, up 4.75 percent from 2007. Revenue per lawyer was down two percent, however, to just over $1 million.

How did Weil manage to raise PPP in this challenging market? More facts that should be obvious after the jump.

double red triangle arrows Continue reading “Profits Per Partner Up at Weil:
(Or ‘D’uh: Weil Makes Money’)”

Dewey logo.JPGSan Francisco is a nice place to visit, but I wouldn’t want to live there. Neither would Dewey & LeBoeuf. The firm just consolidated its San Francisco office into its Palo Alto office. A firm statement went out this morning:

Dewey & LeBoeuf has decided to centralize its Bay Area presence by relocating the lawyers and staff in its San Francisco office to its Silicon Valley office.

If you had to choose between the still thriving tech sector or the whatever the hell is left in San Francisco, it would be a pretty easy decision.

A tipster reported last week that this move isn’t a huge upheaval for the firm:

The office has been in steady decline for several years, and has shrunk from more than 40 attorneys to less than 20.

All attorneys and staff in the San Francisco office will be able to move over to Palo Alto. For most people, “commuting” is not going to be a big deal given the general job market.

Read the full Dewey statement after the jump.

double red triangle arrows Continue reading “Dewey & LeBoeuf Leaves San Francisco”

Akin Gump Strauss Hauer Feld LLP logo.jpgAkin Gump has laid off staff and rescinded offers to summer associates, but those moves are mere details in the grand scheme of things. The American Lawyer reports that Akin Gump lost more partners than any other firm the publication tracks:

Akin lost 17 percent of its partners to competitors, small firms, in-house positions, and government jobs. Some of those defections were anticipated–fallout from strategic shifts in the firm’s practice groups and management structure. But others were a surprise.

Back in August, we reported on a rash of Akin Gump defections, but the overall numbers are still surprising.

Which offices were hardest hit? Apparently, this kind of thing does happen in Texas.

More after the jump, including an update from the Blog of the Legal Times.

double red triangle arrows Continue reading “Partners Leaving Akin Gump”

Morning Docket 02.03.09

Eric Holder Attorney General Eric H Holder Eric Himpton Holder Jr.jpg* After a grueling seven-hour hearing, Eric Holder was confirmed as the first black U.S. attorney general last night. Today, he meets and greets the DOJ’s 110,000 employees. [Washington Post]

* Law firm profits are predicted to continue to decline in 2009. [The National Law Journal]

* A widow’s trial against tobacco companies starts today in Florida, the first case since the Florida Supreme Court threw out a record $145 billion class-action verdict. The Court ruled that each case has to be decided individually. This is the first. 7,999 to go. [Associated Press]

* Sports attorney and BET talk show host Ryan Smith pontificates on what Michael Phelps should do next. Lots of endorsement money will go bye-bye, says Smith. But maybe Phelps can score a cameo in the next Harold and Kumar movie, says us. [CNN]

* Film director Roman Polanski had filed a motion to disqualify all LA Superior Court judges as “biased” against him in his 32-year-old sex offense case. Looks like the California Court of Appeals is biased against him too. They rejected the motion. [CNN]

* Newest project for Citibank attorneys: figuring out how to break the bank’s legally-binding $400 million agreement with The Mets. [Reuters]

Morning Docket is sponsored by PBwiki — an easy, affordable online workspace that you can use as a legal knowledgebase or to manage cases. Seven of the top 20 law firms in the United States are PBwiki customers.

now hiring must have a clue help wanted.jpg[Ed. note: This is a cross-post from one of our sister sites, DealBreaker. We linked to it in passing last week, but we thought we'd mention it again in case people missed it. If you're a transactional lawyer with a background in finance or accounting -- perhaps you worked on Wall Street or as an accountant before going to law school -- these opportunities may interest you.]

Back in October, we mentioned we were looking for an additional writer (or writers) for DealBreaker. In case you were wondering, we’ve not yet filled the position. Because Bess and Equity Private have been doing such an excellent job — January was a record month for DealBreaker in terms of traffic — we haven’t felt much pressure on this front. If it ain’t broke, don’t fix it.

But we are once again thinking of hiring more talent, given how the site is thriving (and how many Wall Streeters might be looking for new jobs right now). Would you be interested (or would you know anyone who might be)?

This is a full-time position, with standard benefits — health insurance, a 401(k), abuse from anonymous commenters. If you’re looking to transition from Wall Street to writing, this is an excellent opportunity.

If you’d like to apply for this position, please email us at jobs at dealbreaker dot com (subject line: “DealBreaker Writer Application”). Please describe yourself and your background, what you have to offer DealBreaker, and your vision for the site. Feel free to include a résumé, a writing sample, a link to your own blog (if you have one), or any other information relevant to evaluation of your application.

Separately, we’re thinking about hiring a part-time writer or writers to cover the world of accounting, with a focus on the Big Four. If this opportunity interests you, please email us also at jobs at dealbreaker dot com (but with this subject line: “Accounting Writer Application”).

Thanks for your interest. We look forward to hearing from you.

Non-Sequiturs: 02.02.09

Groundhog Day.JPG* You think the current U.S. economic crisis is bad? Have you ever heard of a place called “Argentina?” [Crime & Federalism]

* Could I get a venti coffee, with room, and some incorporation advice? [Legal Grind]

* When did Jim DeMint become important? [The Wonk Room]

* Appropriate courtroom maternity wear. [Corporette]

* “A thousand people freezing their butts off waiting to worship a rat. … They used to pull the hog out, and eat it. You’re hypocrites.” [Legal Blog Watch via Blawg Review]

law firm associate bonus watch 2008 biglaw bonuses.jpgWe have been waiting a long time to get a look at the Morgan Lewis & Bockius bonus structure. The firm announced way back on October 30th that it would be delaying their bonus decision until the market settles.

Since then, the firm has found time to institute a salary freeze and fire maybe as many as 50 associates.

Now that the bonus information is finally in, the results are somewhat anticlimactic. Individual memos are out at Half-Skadden levels.

But the real news from MLB is contained in this little memo that went out on Friday night:

Most of counsel and associates have had discussions by now with respect to annual evaluations, so this is a good time to remind lawyers of our policy with respect to taking late time-recording into account when we determine bonus amounts. For the year just ended, there were 55 lawyers whose bonuses were affected by their unexcused late time entries. The impact was larger for repeat offenders.

Ouch. I supposed this is a “good time” to remind lawyers about how late time keeping can affect the year end bonus. Let’s hope that Morgan Lewis also reminded people at the much, much better time — which would have been before people lost money for being tardy with accounting.

Tipsters weigh in and the full Morgan Lewis email after the jump.

double red triangle arrows Continue reading “Associate Bonus Watch: Morgan Lewis Announces Bonuses With Special Reductions for Tardy Time-Keepers”

James Peck wife beater.jpgJudge James M. Peck has received two plum assignments. He’s been handling the Lehman bankruptcy and is overseeing the liquidation of Bernie Madoff’s investment firm.

Some people have been hoping that Peck would lay the smack down on these companies; maybe the federal judge just became horribly confused about his responsibilities:

Bankruptcy Judge James Peck, 63, was charged with attempted second-degree assault and harassment following a Saturday-afternoon tiff with his wife, Judith, 64.

Peck isn’t exactly claiming innocence. Instead, he went straight to “self defense”:

Peck allegedly told police that the blowup began over his wife’s late arrival at the house from the Hamptons, where she’d been earlier in the week.

Peck said his wife slapped him first, as he was taking a ladder out of his closet.

“She slapped me,” the judge told police, according to the sources. “I put the ladder down. I slapped her. Then we started slapping each other back and forth.”

“Slapping each other back and forth.” Are we talking about domestic violence, or a Family Guy episode?

More tidbits from Judge (small) Peck after the jump.

double red triangle arrows Continue reading “Judge of the Day: Bankruptcy Judge Needs Family Law Refresher Course”

Publishing industry layoffs bailout.JPGWe’ve been reporting extensively on lawyer layoffs, but it’s important to remember that a downturn in the legal profession ripples through many other fields and careers. Today’s sad news comes from our friends at Incisive Media, publisher of well-known brands like American Lawyer magazine and the National Law Journal. Incisive media released this statement about its recent cuts:

As has been reported in trade outlets, Incisive Media eliminated 42 positions last week. These layoffs were distributed across positions in both business and news departments in the entire company’s North American units, which includes 31 legal and real estate publications, as well as our events group.

As you know, these are extremely difficult economic times for all media organizations and we deeply regret the loss of many valuable employees who have contributed much to Incisive. Unfortunately, every media company is facing issues similar to ours, as digital publishing rewrites the rules and economics of our business.

The cuts represent roughly 4% of Incisive Media’s overall staff.

Once we get through bailing out the banks and the automakers and people who can’t afford their mortgages, can we get some federal money for the publishing industry?

“Where the press is free and every man able to read, all is safe.”

Media Crack [Gawker]

British aristocrat lawyer.JPGDespite the difficult state of the legal industry, a British research group has found that the profession is still an elite profession that attracts blue-blooded talent. The results of the Centre for Market and Public Organisation elitism research are published in The Lawyer:

Research conducted for The Lawyer by the Centre for Market and Public Organisation (CMPO) at Bristol University, taking wealth to be an indicator of social standing, compared the average monthly family income for lawyers born in 1958 with those born in 1970.

Family income isn’t the only measure of being “elite.” For instance, the study doesn’t take into account the serf to family member ratio of young future lawyers, or if one can put the writings of Dostoyevsky in the proper historical context.

Nonetheless, the results from across the pond are pretty striking, and makes one wonder if there are any class barriers that American lawyers must overcome.

More details after the jump.

double red triangle arrows Continue reading “British Biglaw: Home for ‘Elites’”

wall street bull backside.jpgCutbacks are hitting every level of Biglaw. Firms have gotten very creative in their attempts to wither cut or control costs. Because of all these rollbacks, weathering the global economic crisis is more challenging than simply holding on to your job — though that is hard enough.

How is the economic crisis affecting people day-to-day? We received an interesting story from a Biglaw staffer that really brings home the daily struggle to make it through this recession:

Last year Dechert sent out that retroactive memo about taking a certain percentage from the attorneys’ bonuses if they didn’t enter their time on time. Well, now they are saying that they are going to do it to the paralegals as well, BUT since most paralegals don’t get bonuses, they are threatening to take five percent from our vacation pay if we don’t qualify for a bonus and if we are late entering our time. I only make about $120 a day (in New York City!), so if the partners, who are making millions, want to take $6.00 from a struggling paralegal, that is just disgusting. …

Do any other firms treat their staff [like this]?

Dechert aside (and for the record, we don’t know if this story is an accurate reflection of Dechert’s policies on this specific issue), what other kinds of everyday, “standard of living” sacrifices are people having to make in these difficult times? Contrary to the popular belief, bonuses and pay raises don’t really go into the “coke and prostitutes” fund.

Are associates reorganizing their debt repayment plans? Are paralegals putting off plans to go back to school, or accelerating those plans? Beyond the dollars and statistics, there is a very real cost to all of the bad economic news.

How is it going out there?

Earlier: Biglaw: Welcome to the Credit Crunch

been-waiting-3-hourz-for-a-high-five.jpgWe received about 1500 responses to last month’s ATL / Lateral Link survey on how much of your billable work in 2008 was really for “client billable” time, as opposed to pro bono or administrative matters.

Earlier in January, we had noted that more than a quarter of you couldn’t bill 1800 hours last year, but commenters pointed out that even these numbers were probably too rosy:

It is hard to tell how busy associates really were based on this data. One problem is that “billable hour” may mean different things at different firms. At some firms “billable hour” = client billable hours only. But many firms give billable hours credit for pro bono, recruitment and professional development work. I would be curious to see how much CLIENT BILLABLE hours associates had in 2008 and what they are expecting for 2009.

On the pro bono front, it turns out that the heart is only half empty. About a third of associates spent 100 hours or more on pro bono last year, and roughly 14% had more than 200 hours in pro bono:

Results: How many hours did you did you devote to pro bono matters in 2008?

 Pro Bono Hours   2008 Percentage
Less than 100   68.64%
100 to 199   17.66%
200 to 299   6.13%
300 to 399   3.24%
400 to 499   2.52%
500 or more   1.81%

Since relatively few associates had more than a hundred pro bono hours, there was generally only a one or two percent difference between the levels of “client billable” billable hours in 2008 and the overall billable hours reported. So, for example, while 14.32% of respondents fell short of 1600 billable hours last year, that percentage rose to 16.65% of respondents when only “client billable” hours were counted.

The table below compares your 2007 hours and predictions for 2008 (from our November survey) with the overall billable hours we reported last month and the “client billable” hours from our latest survey results.

Results: How many hours did you bill in 2007 and 2008?

 Billable Hours   2007      2008 
(predicted) 
  2008 
(actual) 
  2008 
(actual 
client 
billable) 
Less than 1600     3.29%   7.93%   14.32%   16.65%
1600 – 1699     2.58%   6%   5.75%   5.55%
1700 – 1799     3.99%   5.61%   7.36%   8.87%
1800 – 1899     8.45%   7.54%   9.37%   11.39%
1900 – 1999     11.5%   16.44%   13.6%   15.21%
2000 – 2100     22.54%   21.08%   18.11%   15.79%
2100 – 2199     12.68%   14.31%     11.11%   9.52%
2200 – 2299     11.03%   6.77%   7.98%   5.77%
2300 – 2399     12.44%     5.42%   4.64%   4.33%
2400+     11.5%   8.9%   7.76%   6.92%

These numbers are, as commenters predicted, a bit bleaker than last month’s results, but about 42% of respondents still managed to bill at least 2000 hours to clients last year, as opposed to pro bono or administrative matters.

Will that hold true this year?

Some commenters thought hitting 2000 hours was actually pretty easy:

4, 18: Um, I definitely billed way over 2000 hours last year… and that’s client billable. In litigation it’s pretty easy to do. I had four appeals (one of which was a bet-the-industry appeal that I was working 48 hour stretches on), like countless depositions, unending motion practice, and two full-blown trials. Do you know how much time you have to bill preparing for a 20 day trial? And then for the trial itself?

It’s easy to rack up crazy hours in litigation when you’re busy.

Other commenters disagreed:

Hitting 2000 hours for 2008 was doable because the bulk of the slow-down didn’t occur until September/October. Only because I had very high hours before then was I able to just barely hit 2000 hours for the year. 2009 will be much worse. I’m worried.

Among survey respondents, pessimists outnumbered optimists about 1.5 to 1:

  * Roughly 44% of survey respondents expected 2009 to bring fewer billable hours than 2008, with 21% expecting much lower hours.

  * About 29% of respondents, however, expected at least a few more hours this year, with almost 9% expecting many more hours.

  * About 27% of respondents expect 2009 hours to be about the same as 2008.

Justin Bernold is a Director at Lateral Link, the sponsor of this Associate Life Survey.

locke lord logo.JPGLast week we brought you news of an impending partner defection from Morgan & Finnegan to Locke Lord. Today, Locke Lord made it official. A press release from Locke Lord heralds the bad news for Morgan & Finnegan:

Locke Lord Bissell & Liddell, a full-service national law firm of approximately

700 attorneys, announces that more than 30 lawyers previously with New York-based Morgan &

Finnegan are joining Locke Lord. Morgan & Finnegan was one of the oldest and most well regarded Intellectual Property law firms in the country. The attorneys include 13 Partners and

the previous members of Morgan & Finnegan’s Executive Committee.

This move more than doubles the size of Locke Lord’s New York office to about 50 attorneys and

leads to Locke Lord opening a San Francisco office – the Firm’s 13th office and its third in

California (Los Angeles, Sacramento and now San Francisco). Morgan & Finnegan was in

existence more than 115 years and was well-known for providing well-rounded IP services

including IP litigation, patent and trademark prosecution and IP counseling and advice.

Notice the interesting use of the word “was?” “Morgan & Finnegan was in existence more than 115 years …”

Does Locke Lord know something that has not yet been announced to the general public? Or are they just parroting the obvious along with everybody else?

Read the full press release after the jump.

Earlier: Nationwide Dissolution Watch: Morgan & Finnegan?

double red triangle arrows Continue reading “Nationwide Dissolution Watch: Locke Lord Locks Down Morgan & Finnegan Laterals”