Deferral Stipend, Layoffs, Start Dates

Fish & Richardson Puts One-Third Of Its Incoming Associates On Ice

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Last week, Fish & Richardson laid off 120 people. It was the second round of layoffs from the firm this year.
But that wasn’t the end of Fish’s cost cutting measures. Yesterday, the firm effectively “cold offered” one-third of its incoming first year associate class. Another third of the class will start on time, and the rest have been deferred until October 2010. Above the Law has obtained this statement from the firm:

While approximately one-third of our 2009 associate class will start on time, we are deferring the majority of the class to October 2010. About half of those deferred will receive a stipend of $5,000 per month for twelve months, along with reimbursement for health insurance. We have informed the other half of those deferred that, given current economic conditions, it is unlikely that we will have a position for them next fall, and we have advised them to seek other opportunities. That group will receive a stipend of $5,000 per month for six months, along with reimbursement for health insurance, and we will revisit their situations in mid-2010.

Isn’t it a bit late for firms to cold offer incoming associates? It’s almost June, yet a third of the first year class just found out that there were essentially out of a job.
Tipsters weigh in, and an update on how the decision was made, after the jump.


Many tipsters we spoke with were annoyed with Fish & Richardson’s timing:

The incredibly late timing of this announcement is really terrible considering that some are irrevocably married to their respective bar exams.

There are students out there who are sitting for a state bar exam based on the expectation of working at Fish & Richardson. Now that the promise is gone, many people will have to decide if they want to stay in their chosen jurisdiction, or change course — and wait until the February exam in a new state:

[O]bviously, [3Ls with rescinded offers are] the group most f***ed by Fish’s super late decision. Some of us, who were supposed to move to another state, e.g., NY, dont want to take the NY bar now that the legal market in NYC has crashed. Also, given that bar application deadlines have passed for many states, it will also be that much more difficult to find a job and pay for a new bar exam.
Fish [has taken] unprofessional, disrespectful, and deplorable actions. This should not go unpunished.

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But the firm doesn’t want to look like it is completely cutting these would-be attorneys loose. The Fish & Richardson statement also includes this language:

We are confident that everyone in this class will become outstanding attorneys, and regret that the continuing impact of the recession has made this move necessary. We realize that this deferral will be a hardship for those affected, and we will assist them during this time. In addition to the stipends, the firm will provide assistance in finding public interest or pro bono positions, and will continue to pay their bar exam and review class expenses.
We appreciate the level of professionalism our 2009 class has demonstrated as we work with them to adjust to the changed economic landscape.

In response, one tipster had this to say:

[Fish & Richardson] thanked me for my “professionalism.” But I’m not a professional. Fish destroyed my professional career before it even started. Now, I’m just some homeless person covered in my own s**t. Not a professional. … But I guess compared to Fish I still smell pretty good.

Clearly, there is a lot of anger out there. Hopefully, all of the affected attorneys will land on their feet.
Update (3:47 PM): According to a tipster, here is how Fish decided whom to keep, and whom to cut:

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F&R made its decision of which 3Ls to cut and which to deffer by weighing a 3L’s technical expertise and the firm’s staffing needs in individual offices, not because of summer performance.

Earlier: Nationwide Layoff Watch: Fish & Richardson Throws Associates/Staff Back
Nationwide Layoff Watch: Fish & Richardson Cuts 30 Staff: Unknown Number of Associates

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