Chadbourne & Parke: Indefinite Deferral for Half Its Class

The closer we get to the time when incoming associates in the class of 2009 are supposed to start, the more deferral extensions we are likely to see. Over the weekend, news broke that Chadbourne & Parke had decided to push back half of its incoming class “indefinitely.”
We don’t have any information about whether the incoming associates on extended deferral will be offered any type of extended stipend.
Update: A spokesperson from Chadbourne responded to Above the Law’s inquires about the continuing stipend:

These deferred associates have already received $13,000 and will receive an additional $60,000 stipend beginning in February 2010.

The news shouldn’t be entirely surprising for incoming associates at Chadbourne. The firm laid people off in March, and cut salaries in April.
And remember, last October, Chadbourne instituted a hiring freeze. At the time, we had a few questions for Chadbourne:

In light of this hiring freeze, what does that mean for students who interviewed with Chadbourne? Are they de-facto canceling their 2009 summer program? If so, it seems like an awful waste of resources to send recruiters around the country for jobs that are no longer available….
And, of course, we have no idea how this will affect 2008 summers associates. We assume that any of them who received and accepted offers for full time employment next fall still have those offers.

Note to self: never assume.
There seem to be two options that firms are following. After the jump, let’s look at the options and take a reader poll.


Incoming associates all across the Biglaw landscape are understandably worried. If they are not going to be able to start with their firms, it seems like there are two plans: The Bird and The Fox.
The Bird — inspired by Alston & Bird — is the kind of plan we see Chadbourne doing here. Indefinite deferral for a portion of the incoming class. Essentially, these incoming associates have been turned into a reserve force. The firm will give them a call if work picks up, but incoming associates shouldn’t be under any illusions that their offers are going to be honored. But hope can be a powerful thing.
The Fox — inspired by Arent Fox — is a clean break approach. Incoming associates will be cut loose, perhaps with some walk away money. The firm can move on, and incoming associates can move on to whatever career options they might have. This might be especially appealing to associates who have options in another market. Cutting incoming people loose now gives them the option of studying up for the February bar exam in another state.
Which option to do you prefer (or would prefer if you had the misfortune of being in the class of 2009)? Take our reader poll below.

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Earlier: Nationwide Layoff Watch: Chadbourne & Parke Update
Salary Cut Watch: Chadbourne & Parke Takes a Stab at Salaries
Hiring Freeze at Chadbourne & Parke Adventures In Burying The Lead

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