Archive for November 2009

Morning Docket: 11.06.09

* Unemployment hits 10.2%. I think it’s time to start throwing rotten food around at somebody. [New York Times]
* Does Bernard Kerik’s guilty plea end Rudy Giuliani’s nightmare? [Huffington Post]
* Dallas = not racist. [Courthouse News Service]
* Doesn’t anybody respect attorney-client privilege anymore? This isn’t ‘Nam. There are rules. [Am Law Daily]
* Honestly, I’m more worried about gamma rays from distant black holes than I am about cell phone radiation. And no, I’m not at all worried about gamma rays. [Law.com]
* People seemed to like music on Fridays. So, in honor of the (Damn) Yankees:

University of Iowa College of Law logo.jpgThe influx of law students into the profession — and the deflationary pressure they bring to legal salaries — just can’t be stopped. There are too many prospective law students. And they aren’t listening to reason.
We have barred the gates but cannot hold them for long. The ground shakes, drums… drums in the deep. We cannot get out … they are coming.
The University of Iowa College of Law — that’s right, Iowa — is receiving a record number of applications. The administration sent out this, almost taunting, email:

Greetings from The University of Iowa College of Law:
We have nearly completed a busy Fall travel schedule. Also, it has been a very successful travel season, as reflected in our total application numbers to date: Applications to The University of Iowa College of Law have increased 62% versus this time last year, and the quality and diversity of those applications has increased significantly, as well. It is still early in the admissions season, so we will see if these positive signs hold up over the long term. These increases do, however, reinforce the strengths of The University of Iowa College of Law:

I don’t even know how to make sense of a 62% increase in applications. But I’ll try after the jump.

double red triangle arrows Continue reading “Applications Up, Way Up, At Iowa Law School”

Non-Sequiturs: 11.05.09

Ike and Tina.jpg* Did I miss the part where beating your wife became a civil right? [Double X]
* The Anonymous Lawyer opines on Biglaw bonuses. [WSJ Law Blog]
* Justice Antonin Scalia will be speaking at Ohio State. Any chance he’s looking for clerks? [Moritz College of Law]
* Stealing court documents in plain sight. [The Victorious Opposition]
* Why does Facebook hate pregnant women? [Gothamist]
* Anyone wondering why Carrie Prejean abruptly settled her suit with the Miss America people? It’s pretty hot, or horrible, I can’t decide. [TMZ]

Michael Kimelman Mike Kimelman Michael Kimmelman Arthur J Cutillo Arthur Cutillo Ropes Gray headshot.JPGToday the winners of Lawyer of the Day honors are obvious. Congratulations to Arthur Cutillo, Michael Kimelman, and Jason Goldbfarb, three attorneys who stand accused of involvement in the infamous Galleon Group insider trading scheme.

Both Cutillo and Kimelman have distinguished pedigrees, with ties to two top firms. Cutillo (left), a holder of an M.S. in chemical engineering as well as a J.D. (both from Villanova), was an associate at the white-shoe firm of Ropes & Gray. Kimelman (right), a partner at Incremental Capital LLC, once worked as an associate at super-prestigious Sullivan & Cromwell.

Check out Cutillo’s firm bio and Kimelman’s LinkedIn profile over here.

The third charged lawyer, Jason Goldfarb, apparently worked as a personal injury lawyer in Brooklyn. He allegedly served as a conduit of information between Cutillo and Zvi Goffer — the former Galleon employee apparently referred to as “Octopussy” at the SEC, because “he had his arms in so many insider” trading schemes.

More on our three honorees, after the jump.

double red triangle arrows Continue reading “Lawyers of the Day: Arthur Cutillo, Michael Kimelman, and Jason Goldfarb”

Salary Cuts.jpgHave you noticed that whenever there is a story about the long-term future of associate salaries, there is always a quote from somebody at Altman Weil, the law firm consultancy? And have you noticed that their quotes are often advocating deep cuts in associate pay?
The latest example of this curious phenomenon appears in the Fulton County Daily Report:

Altman Weil’s Oct. 27 program, called “Leverage, Lockstep and the Changing Associate Model,” was for law firm clients.
Altman’s James D. Cotterman, who advises firms on compensation, said associate pay did not drop enough in the recent round of cuts at the nation’s big law firms, which included Atlanta’s largest firms.
Cutting pay from $160,000 to $145,000 was only “about half of what was needed,” said Cotterman. The starting salary at big firms in New York, Washington and Los Angeles was $160,000 before the pay reductions that started last spring.
Cotterman said a $15,000 cut does not make a significant difference in “changing the value equation to clients.”
“They probably should have set pay back a decade, to 1998. That’s what I was expecting,” he said. “This story may not be over yet.”

I don’t see James D. Cotterman advocating that profits per partner go back to 1998 levels. I wonder why?

double red triangle arrows Continue reading “Who Elected Altman Weil the God of Associate Compensation?”

goodwin Procter logo.JPGIt’s been a tough day at Goodwin Procter. Multiple tipsters report that the firm is laying off both attorneys and staff today. One source reported on the human toll of losing your job:

[L]awyers were just laid off this morning at Goodwin Procter in Boston. There are both men and women crying in the halls.

It’s not clear what triggered the tears, since Goodwin handled the dismissals professionally, appropriately, and in a manner similar to other top firms. Are Goodwin guys just more sensitive?
Goodwin has laid off 21 attorneys and 34 staff. Here is the critical part from the firm-wide memo Goodwin Procter just sent out to its associates:

In anticipation of a slow economic recovery, we took a number of actions during the year to manage our staffing model, secretarial ratios and discretionary expenses. The end result was that while we were largely successful in realigning resources to meet client needs and market demand, there remains some overcapacity within the firm.

After careful deliberation, we have made the difficult decision to reduce our associate ranks by 21 people and our professional staff ranks by 34 people.

Most of the attorneys who were cut were second-year associates in the firm’s Business Law Department, out of its Boston office.
Read the full memo, after the jump.

double red triangle arrows Continue reading “Nationwide Layoff Watch: Goodwin Procter Makes Grown Men Cry?”

New York bar exam Texas bar exam.jpgCongratulations to everyone who passed the New York bar exam. To those who did not pass, we wish you good luck if and when you take it again.
As we noted last night, results were scheduled to be made available to exam takers today and to the general public tomorrow. But it seems that the NY bar exam results are already available to all, courtesy of Buffalo Business First. To see whether your law school friends (or enemies) passed (or failed), click here and use the alphabetical dropdown menu.
The next big state set to release its bar exam results: Texas.

[T]he official day for Texas Bar results to come out is tomorrow, but historically (wtf that means) the bar results have come out the Thursday before, which is today.

I realize telling you this probably will result in the more visits to the site and it crashing, but oh well. Law examiners should just state a specific time that results will be posted and stick to that.

Since our last bar exam thread has about 450 comments (and counting), we thought a new open thread might be in order. Here you go. Enjoy.
Names Of People Who Passed NYS Bar Exam [Buffalo Business Journal]
Earlier: New York Bar Exam Results Will Be Posted Tomorrow, New Jersey Goes Up Next Week

Notes from the Breadline Roxana St Thomas.jpgEd. note: Welcome to the latest installment of “Notes from the Breadline,” a column by a laid-off lawyer in New York. Prior columns are collected here. You can reach Roxana St. Thomas by email (at roxanastthomas@gmail.com), follow her on Twitter, or find her on Facebook.
This column is a continuation from last week’s, which you should read first if you haven’t done so already.

After the group members have finished their elevator speeches and turned their attention to the fun meals before them, Rhonda comes over and sits beside me at the kids’ table. “So,” she says, leaning in, “have you made your one connection yet?” Her voice has the same solicitous tone one might use to ask a child whether she brushed her teeth like a good girl, or made wee-wee in the potty chair.
“Not yet!” I say, mustering perkiness, “but the night is young!”
“Well,” she says, undeterred, “I am so glad you could come. These meetings are such a great opportunity to network, even if the group members are not in your exact field. Don’t you think?”
I tell her that I, too, am glad I could come, that I am excited to meet people and do some networking, and that I am fairly certain that connections — especially those formed at networking events! — transcend professions. Although I feel like I am reading from a cue card, the group seems to have its own lexicon, and I realize that I am unconsciously translating conversational English into network parlance. Despite my efforts, however, I slip up a moment later, when I use the words “unemployed” and “laid off” in the same sentence. “Eh eh,” she says, cutting me off. “In transition.” She pronounces the words carefully, as if to ensure comprehension.
We are interrupted by Jason, a member of the group who is leaving early and has come over to say goodbye to Rhonda and Mitch (who is also seated at the kids’ table). Jason talks for a few minutes about some of the “great connections” he has made since the last networking event. “There are some great possible opportunities there,” he says hopefully. “So, we’ll see …” his voice trails off.
“How long have you been unem–in transition?” I ask tactlessly.
“Eight months,” he says, arranging a broad smile. His bravery sounds forced. “But I’m not worried about it. As long as I keep networking, coming to events like this one, staying active on Linked In … I’m sure something will come up.”
“Oh, definitely,” Rhonda and Mitch murmur in unison, nodding emphatically. With automaton-like precision, Jason moves into a sales pitch, pulling out a sheaf of brochures and business cards. He tells us that his wife has started a catering business to bring in extra money. “I’m not just saying this because she’s my wife, heh heh,” he announces sincerely, “but she does a terrific job.” He encourages us to turn to her for our catering needs, and to tell our friends and “contacts” about her. Alas, I find myself thinking: though I’m sure his wife does, in fact, do a terrific job, being “in transition” is so rarely a catered affair.

double red triangle arrows Continue reading “Notes from the Breadline: Friends and Other Strangers
(Part III)”

Career Center AboveTheLaw Lateral Link ATL.jpg
Lately, Big Law firms have been changing their salary structures more often than associates can keep up with. With an increasing number of firms abandoning lockstep compensation, associates have been left in the dark about what compensation levels actually are.
This week, our ATL / Lateral Link survey asks for your help to track the latest changes to starting salaries and the salary ranges for firms that have moved away from lock-step compensation. We’ll use the information to update the ATL Career Center and bring you the results next week.

If you have information about your firm that you want to share with other Career Center users, please email us at careercenter@abovethelaw.com.

day pitney logo.jpgIncrementally, the pace of layoffs has been picking up. Perhaps firms are trying to get through all of their cuts before the holiday season?
The latest news comes from Day Pitney. A tipster reports:

Day Pitney in CT laid off 30 staff today and moved staff to lower positions.

A spokesperson from Day Pitney confirmed that the firm laid of 29 staff (not 30). The move was part of a staff reorganization and affected staffers in eight of the firm’s nine offices.
No attorneys were laid off.
Let’s check Day Pitney’s layoff history after the jump.

double red triangle arrows Continue reading “Staff Layoff Watch: Day Pitney Downsizes Staff”

Crushing Debt Obligations.jpgWe’ve talked a lot about law schools that are raising tuition. It borders on unconscionable for schools to pump up tuition at a time of deflationary legal salaries and a difficult job market.

So I was a little surprised when I received this email from a University of Miami School of Law student:

The Dean of UM just sent out an email announcing policy changes that are going to save students’ tuition money (up to a couple thousand $$$ per semester). This while other law school in America is trying to milk every last cent out of students.

A law school that costs less? To the Batmobile!

double red triangle arrows Continue reading “University of Miami School of Law Slows Growth of Tuition”

Arthur J Cutillo Arthur Cutillo Ropes Gray headshot.JPGThe news was first reported by CNBC. See Dealbreaker for more details.
We have phone calls and emails in to Ropes & Gray and are waiting to hear back. We will keep you posted on further developments.

If you have more info, please email us. Thanks.

UPDATE (10:00 AM): According to Bloomberg, the FBI has arrested Arthur Cutillo (pictured). He is no longer on the Ropes & Gray website, but you can find his bio via Google Cache. Interestingly enough, he was an IP litigator, not a corporate attorney.

CNBC is now reporting that a Ropes & Gray employee allegedly provided inside information about various “going private” transactions the firm was involved in. Some of these transactions apparently involved companies heavily dependent upon intellectual property, such as technology companies.

UPDATE (10:10 AM): In case the Google Cache entry is removed, we have posted Arthur Cutillo’s bio after the jump. He graduated from Rutgers (undergrad) and Villanova (law), and he worked at Merck before joining Ropes.

UPDATE (10:15 AM): Here is a statement from Ropes & Gray:

We are deeply disappointed to learn about this situation, which suggests an extreme breach of this person’s duty of trust to our clients and to the firm. We cannot comment in detail on an ongoing investigation but we are moving quickly to protect our clients and are cooperating fully with authorities.

UPDATE (12:15 PM): U.S. Attorney Preet Bharara (S.D.N.Y.) is giving a press conference discussing the charges. One of the other individuals charged, Michael Kimelman, once worked as an associate at Sullivan & Cromwell.

UPDATE (4:30 PM): We’ve honored Artie Cutillo, Michael Kimelman, and a third lawyer, Jason Goldfarb, as our Lawyers of the Day.
Art Cutillo’s Ropes bio and Mike Kimelman’s LinkedIn profile, after the jump.

Seven Arrested In Insider Trading Case [Dealbreaker]

double red triangle arrows Continue reading “Breaking: Arrest at Ropes & Gray in Galleon Insider Trading Case”

Morning Docket 11.05.09

Troutman Sanders logo.jpg* Federal prosecutors accuse Troutman Sanders real estate practice group leader, Leonard Grunstein, of participating in a $50 million kickback scheme. [AmLaw Daily]
* Bank of America’s general counsel was not on active status to practice law in Massachusetts during his first (crucial) eight days as the company’s top lawyer. [Boston Globe]
* Big pay day for the lawyers who helped Walmart workers get their overtime money. [National Law Journal]
* NY AG Andrew Cuomo is going after Intel. [Wired]
* The attorney general of Kenya is mulling a lawsuit against the U.S. for revoking his travel visa. [Associated Press]
* Robber can sue the store he robbed. [CBS News]
* AT&T sues Verizon over map mocking its poor 3G coverage… and brings more attention to how poor its 3G coverage is. [PC World]

New York Statue of Liberty.jpgIt is the most frightening time of the year for prospective lawyers. The New York State Bar Exam results will be posted tomorrow. As other states have posted results, we’ve seen that this year the “pass or you’re fired” feeling is strong.
Here’s the results preview from the New York Board of Law Examiners:

Important Notice for JULY 2009 BAR Exam Takers:
The results from the July 2009 bar examination will be made available to candidates, by e-mail, on November 5, 2009. You must ensure that you can accept emails from barresults@nybarapply.org. There will also be a link on this website to privately view your individual result by mid-day.
A list of the candidates who passed the examination will be made available to the general public on Friday, November 6, 2009.

People who took the bar in New Jersey will have to wait another couple of days:

July 2009 Bar Results – Bar results are expected to be mailed on Monday, November 9, 2009. Results are expected to be posted by Candidate ID number on Monday at 4:00 pm. ID numbers and/or addresses will NOT be given or verified for security reasons.

One piece of advice as you wait for this important information: alcohol is your friend.
Earlier: New York Bar Exam Results Are Up

Non-Sequiturs: 11.04.09

First Amendment E.JPG* Defending free speech requires one to defend some pretty annoying junk. [Underdog]
* Have you ever been framed by a prosecutor? [Bad Lawyer]
* An openly pagan Republican lawyer won a city council seat last night. In the words of Winston Zeddmore: “I love this town.” [Double X]
* I don’t think you should be called a super lawyer unless you have an alter ego of some kind. [Tax Prof Blog]
* David Lat on the joys of blogging. He shares some good advice for people just starting out. [Blackbook Legal]
* And as Marin explains, legal writing can be a decent way out of Biglaw. You know, so long as you don’t mind having an apartment like mine that resembles a spider hole. [TechnoLawyer]

gay marriage skadden.jpgIt’s the day after Election Day! Granted, this year’s election cycle wasn’t nearly as exciting as last year — when Obama ended racism in America.
Still, there are many winners to congratulate. Republicans Chris Christie and Bob McDonnell are new governors. People can now point to the North Country on a map of New York State. Michael Bloomberg secured a third term as New York City Mayor. And the New York Post (predictably) managed to ignore it all and plastered of picture of Pedro Martinez in a diaper on its front page.
But for our purposes, the biggest winners were the voters of Maine. They successfully defeated the efforts of gays and lesbians to be treated fairly, thus making sure that all of those rugged and earthy Mainers will not be tempted to have the gay sex they secretly desire.
Obviously the tactics of BC Law professor Scott Fitzgibbon — and other defenders of traditional marriages between drunken woodsmen and the girls they knock up — won the day. Do gay marriage advocates have any more tricks stashed in their closets?
Kash says yes, after the jump.

double red triangle arrows Continue reading “Election Day Recap: BC Law Professor Scott Fitzgibbon Among the Winners”

Andrew_Blumberg_on_Food_Network.jpgDuke University 2L Andrew Blumberg is a “Simpsons Superfan,” a designation that got him an appearance on the “Food Network Challenge” this past weekend. The challenge was to create a cake inspired by the Simpsons episode, “Last Tap Dance in Springfield”. Four “superfans” were paired with professional cake designers to ensure character fidelity in the final creations.
Blumberg was paired with a professional cake designer to craft a Bart Simpson cake. Almost anyone between the ages of 20 and 55 would likely claim the mantle of Simpson fan. How do you qualify as a “superfan”? From Duke Law News:

Qualifying as one of the show’s four “superfans” took more than just logging hours in front of the television, though. “One of the things I said that I think resonated with them was that I incorporate the Simpsons into the rest of my life,” Blumberg says.
Take, for example, the project he has been working on with Duke Law Professor Barak Richman to create a DVD that explains contracts using clips from Simpsons episodes. “That was one of the things that made me stand out from the crowd,” he says.

Mad points for any ATL reader who remembers the name of the stripper character that appeared in just one Simpsons episode (no Googling).
So how did Blumberg do on the show?

double red triangle arrows Continue reading “Law Student of the Day: Andrew Blumberg”

David Minkin publisher AbovetheLaw Dealbreaker Breaking Media.jpgYesterday’s Lawsuit of the Day — Jones v. Minkin, a $44 million lawsuit against yours truly, Above the Law publisher David Minkin, and Dead Horse Media (now known as Breaking Media) — has been voluntarily dismissed by the plaintiff, University of Miami law professor Donald Jones.

There was NO SETTLEMENT in this case. Above the Law has made no changes to our prior posts, and we have paid no money to Professor Jones. The case was dismissed by the plaintiff without anything from our side, except a letter from our lawyer.

UPDATE (3:35 PM): We have offered Professor Jones a guest post on Above the Law in which to provide his side of the story, about either the lawsuit or the underlying facts. We have offered to keep the comments on that post closed or open, depending on his preference. (And we would have done this in the first place, had he made such a request.)

A huge thanks to our counsel, Marc Randazza.

Comment from Randazza, plus links to the notice of voluntary dismissal and other news outlets and blogs — we will UPDATE continually, so do check back for fresh links — after the jump.

double red triangle arrows Continue reading “Breaking: Jones v. Minkin Dismissed!!!
(Plaintiff voluntarily dismisses lawsuit against ATL.)

2009 Associate bonus watch above the law.JPGMonday, Cravath kicked off bonus season. Cravath’s announcement started a fresh round of bonus speculation.
We previewed bonus season in October. Before Cravath came out with its bonuses, we wrote:

The most common speculation we’ve heard is that this bonus season will defy the follow-the-leader market matching of the past. People expect that firms in a stronger financial position will pay more than firms in a weaker financial position. It sounds like simple economics, but we can’t remember the last time there was systemic bonus separation among top law firms.

Ashby Jones of the WSJ Law Blog had a similar thought after Monday’s news:

But the question on our minds: Will others follow in step with Cravath? In previous years, most firms have fallen right in line with the first mover. (Last year was an exception, though, with the lion’s share of firms giving bonuses equal to half of what Skadden paid out.)

After the jump, let’s see what others in the legal industry are saying about the future.

double red triangle arrows Continue reading “Year-End Bonus Open Thread: Cravath Leads But Will Anybody Follow?”

Mayer Brown LLP new logo.jpgAs we mentioned in our recent open thread on appellate work, Mayer Brown has one of the best appellate and Supreme Court practices in the country. The firm is also known for being rather democratic when distributing SCOTUS arguments; they tend to spread the argument wealth around, instead of funneling all the arguments to a single prominent advocate.
Steve Sanders Mayer Brown.jpgMake that very democratic about doling out SCOTUS arguments. Today Steve Sanders, a fourth-year associate in Mayer’s Chicago office, argued the case of Pottawattamie County v. McGhee before the U.S. Supreme Court.
Of course, Biglaw associates have appeared before the high court before. E.g., Lindsay Harrison of Jenner & Block, who also argued — and won — her first case at One First Street. But one thing that’s unusual about Pottawattamie County is that it’s a paying case, not a pro bono matter.
Sanders has some serious opposition. Read more, after the jump.

double red triangle arrows Continue reading “Mayer Brown Associate Makes His Supreme Court Debut”