Archive for November 2009

Lawyer of the Day, Or ATL Commenter?

By Elie Mystal

basketball hoop on trash can.JPGHave you ever wondered what would happen if some of our Above the Law commenters had one of their classic diatribes in open court? I do.
I don’t know if Raphael Scotto posts anonymous comments on ATL. But it wouldn’t shock me if he does. The New York Post reports:

A defense lawyer was fined $2,500 and barred from city administrative court after throwing tantrums and cracking fat jokes about an overweight prosecutor during a sexual-harassment hearing. …
He even made wisecracks about portly prosecutor Victor Muallem.
When Muallem squeezed between two desks, Scotto joked, “Tough fit, there, huh?”

Actually, I’m not being fair. ATL commenters are much more funny:

Elie – When you first read the phrase “friable issue of fact” did you get hungry?

But maybe Scotto doesn’t have a lot of experience making fat jokes. Apparently that is not his go-to move.

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Thanks to This Week’s Advertisers

By Above the Law

thank you post it note.JPGA quick word of thanks to this week’s advertisers on Above the Law:

  • The Atlantic
  • Harvard Business School
  • Kinney Recruiting
  • Lateral Link
  • LexisNexis
  • NewportNJ
  • The Red Cross
  • University of Massachusetts, Amherst, Isenberg School of Management
  • WesCary3D

    If you’re interested in advertising on Above the Law or any other site in the Breaking Media network, download our media kits, or email advertising@breakingmedia.com. Thanks!

    Nationwide Layoff Watch: Dickstein Shapiro Downsizes

    By Elie Mystal

    Dickstein Shaprio still basically relevant logo.JPGGive Dickstein Shapiro credit. When the firm lays people off, it doesn’t hide behind any performance review rhetoric. When Dickstein laid people off back in January, firm chairman Michael Nannes had this to say:

    These are purely economic decisions — this is a group of talented attorneys who have made valued contributions to our Firm.

    Dickstein is going back to the layoff well today. Once again, Nannes has some frank language:

    It is with heartfelt regret that I announce today that we are readjusting the size of our workforce to better align the firm with the current economic climate and emerging legal services model.

    Well then. Business model layoffs.
    Numbers and the full memo after the jump.

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    Shearman & Sterling Deferral Stipend

    By Elie Mystal

    Shearman & Sterling logo.gifSo far, firms that have deferred their 2009 summer associates to 2011 have been noncommittal about whether they will be giving a deferral stipend. Many class of 2009 graduates received money from firms for the year long wait. It’s not clear that class of 2010 graduates will be as lucky.

    With the market still up in the air, Shearman & Sterling is giving its incoming class of 2010 the same offer it gave to its incoming class of 2009. A tipster reports:

    Shearman NY has announced deferral stipends of $65k.

    After the jump, we compare Shearman to itself.

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    Morning Docket: 11.04.09

    By David Lat

    Christopher Christie Christopher J Christie Chris Christie fat heavyset overweight obese.jpg* Prosecutors prevail at the polls: former U.S. Attorney Chris Christie (pictured) wins the gubernatorial race in New Jersey, and former state attorney general Robert McDonnell seizes victory in Virginia. Both are Republicans. [New York Times]
    * Meanwhile, Maine voters reject a state law that would have allowed same-sex marriage. [Associated Press]
    * Lawyers for John Allen Muhammad, the “D.C. Sniper” behind random shootings that killed 10 people, want the Supreme Court to stop his execution. [Washington Post]
    * Former Day Casebeer lawyers, embroiled in messy disciplinary proceedings over discovery problems, claim their ex-client Qualcomm misled them. [WSJ Law Blog]
    * Which three law firms are involved in the gigantic, $34 billion Berkshire Hathaway / Burlington Northern deal? [Am Law Daily]
    * Police recover loot from the infamous celebrity-targeting burglary ring. [Popsquire]
    * An Italian judge will soon issue his ruling in a trial over the CIA’s extraordinary rendition program. [Associated Press]
    * Have we learned nothing from the unfortunate tale of Adam “Bulletproof” Reposa? Don’t make an obscene gesture in front of a judge. [Chicago Sun-Times]
    P.S. We worked for Chris Christie in the U.S. Attorney’s Office from 2003 until 2006. Congratulations on your hard-won victory, Chris!

    Lawyer of the Day: Scott Rothstein

    By Kashmir Hill

    scott rothstein.jpgAs we’ve noted in Morning Docket for the past two days, lawyer Scott Rothstein is in all kinds of trouble in Florida. From what we understand, it’s Marc Dreier redux, the sunshine state version.

    We’re still trying to wrap our heads around the story, but as the Bard would say, the sh** hath hitteth the fan this week.
    The WSJ Law Blog is similarly perplexed by the scandal (See What’s Going on at Rothstein Rosenfeldt? Part I and Part II).

    Scott Rothstein, a founding partner of Rothstein Rosenfeldt Adler, has been out of the country for the last few days, making this all even more confusing. He just flew back into Miami an hour ago and police have surrounded his firm. We give you context after the jump.

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    Non-Sequiturs: 11.03.09

    By Elie Mystal

    Election day 2009.JPG* I wish I had read this post before I voted this morning. [What About Clients?]
    * Gay marriage activists are outing the names of those who stand opposed to gay rights. Good political strategy or straight up intimidation? [True/Slant]
    * New Wachtell partners. Congratulations boys, enjoy your fabulous wealth. [Am Law Daily]
    * Lawsuits against Deloitte have come back from the dead. [Going Concern]
    * To be clear, if any group is getting “screwed” by affirmative action it is rich Asians. [Tax Prof Blog]
    * The Bogeyman cometh to Blawg Review. [New York Personal Injury Law Blog via Blaw Review]
    * “Beckner represents exactly the kind of cop that should be stripped of his badge, covered in s*** and bees, and then rolled off a cliff in a shopping cart.” But, tell me what you really think of officer Beckner? [The Legal Satyricon]

    Morgan Lewis Delays the Death of Lockstep

    By Elie Mystal

    Morgan Lewis.JPGIn July, Morgan Lewis & Bockius announced that it would be ending lockstep compensation for its associates in 2010. At the time, the firm furnished this statement to Above the Law:

    “We’re running our own business and focusing relentlessly on client relationships,” said Francis M. Milone, Chair of the Firm. “Doing so responsibly means continuing to reduce expenses, committing to the people in whom we are already invested, and looking at compensation across the board to ensure our structure matches the reality the entire legal industry must face.”

    The July announcement was the culmination of the effort made by MLB and its chairman, Francis Malone, to reform the Biglaw business model. Back in April, Milone gave an interesting interview to the Philadelphia Inquirer:

    Question: Law firms are still very profitable. Why do they need to downsize?
    Answer: You have to make a judgment about whether you can keep people busy going forward. It is not healthy for a lawyer to not be busy, to have free time on his or her hands. You don’t grow, you don’t develop, you’re not happy.
    And from a cultural perspective, you don’t want to build a firm that culturally is populated by a lot of people, or too many people, who don’t have enough to do.
    Q: Is that the only reason?
    A: The other piece of it is the feedback we got from clients. Because they’re looking at the way they want law firms to act. They’re not going to be as willing to pay, frankly, to train new lawyers. So it’s going to be harder to find things for new lawyers to do. And when we’re paying new lawyers $160,000 and clients don’t want to pay for them, you’re putting them in a position where there may not be a lot of things for them to do.

    Well, 2010 is almost upon us. But MLB is suddenly not so excited about ending lockstep compensation. Milone conducted a firm-wide video conference yesterday, and tipsters report his enthusiasm for ending lockstep compensation was noticeably lacking.
    Details and a statement from the firm, after the jump.

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    Legal Eagle Wedding Watch: Couple of the Month for October

    By Laurie Lin

    champagne glasses small.jpg
    Celebrity newlyweds Ivanka Trump and Jared Kushner won last week’s Couple of the Week poll handily, demonstrating that even with ATL readers, beauty, fame, and vast wealth can compensate for lack of a Supreme Court clerkship.
    Now, Ivanka and Jared move on to the Couple of the Month round, where their competition is less-credentialed than last week’s, perhaps, but also a tad more attractive. Will the celebrities continue to steamroll over the real lawyers? You make the call.
    After the jump, a quick refresher on our four October Couples of the Week, and a reader poll.

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    Boston College Law School Has A Plan For Its Jobless 1Ls and 2Ls

    By Kashmir Hill

    Boston College Law School logo.jpgCareer service offices can be scary places these days, given the tough job-searching environment for law school students. The summer plans of many 1Ls and 2Ls are still up in the air this year, as firm offers are sparse.
    Many law school students have given up hope of finding a job. One law school may be giving up hope too. Boston College Law School is considering an alternative to a summer gig: summer classes.
    From an email sent out by BC Law Associate Dean Mike Cassidy:

    We have heard from many students that the summer legal job market is very difficult, and that if there were an option to earn credit for summer study (while perhaps working in a non legal setting to pay the bills) some students might find this option very attractive, especially if it would help them accelerate their degrees.

    So BC students may be able to spend the summer working as Starbucks baristas while taking classes. Are they really raring to finish up their degrees and get into the job market for real?

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    ‘Tis the Season for Horrible Gift Ideas

    By Elie Mystal

    Sky Mall logo.JPGI was in Georgia yesterday. After speaking to the Georgia Association for Women Lawyers (nice meeting you, we’ll have to do that again), and playing a ridiculous game of telephone trying to keep current with Above the Law (an HLS grad set S&C on fire on a $7,500 dare?), I was looking forward to a relaxing plane flight home.
    Some years ago, my wife introduced me to the hilarity of the in-flight Sky Mall magazine. There is perhaps no finer collection of totally useless items. I wasn’t in “ATL-mode,” but this particular gift made me want to violate FAA regulations and post from the runway:

    Passing the Bar
    The perfect gift for law students
    A great gift for law students, both throughout law school and to help prepare them for the Bar Examination. With “Passing the Bar” flashcards, your favorite law student will spend more time studying, in an enjoyable, fun setting. Fun for lawyers too!
    The game includes 350 Mulitstate Bar Examination (“MBE”) Cards (featuring legal questions modeled after the MBE), and 100 Justice Cards (featuring celebrity run-ins with the law, movie quotes from notorious and gripping courtroom dramas, outrageous verdicts and alike). Additional game cards (sold separately) includes 450 questions from previous Bar Examinations, released by the NCBE.

    Not cool, man. Not cool.
    Tipsters weigh in after the jump.

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    Graduate from ‘Tier 1′ Law School Decides Education is Worth $0

    By Elie Mystal

    Unpaid intern JD attorney.JPGWhat does it say about the value of a law school education if recent law graduates are begging for an opportunity to work for free? I wonder if applicants for the law school class of 2013 are paying attention. We mentioned this Craigslist post in Non-Sequiturs last night:

    NY licensed attorney work for free (DC/Maryland/Virginia)
    2008 graduate from 1st tier law school, with one year law firm experience, licensed in NY state, DC bar pending, is willing to work for free for one year or more, in exchange for experience in civil litigation, criminal defense, family law, contract, bankruptcy. and/or property law. I am very reliable, hard working and easy to work with. I can start working immediately in the DC and surrouding [sic] area.

    “Why buy [the associate] when you can get [the blood, sweat, and tears] for free?”

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    Lawsuit of the Day: Jones v. Minkin
    (Or: Above the Law gets sued!!!)

    By David Lat

    David Minkin publisher AbovetheLaw Dealbreaker Breaking Media.jpgFor the first time in over three years of operation, Above the Law has been sued. We feel the lawsuit has no merit, but we will not comment further on this ongoing litigation. To access the pro se complaint, coverage by other news outlets and blogs, and ATL’s prior posts about Professor Donald Jones, click on the links collected after the jump.

    Please note that we have closed comments on this post, out of respect for the judicial process. Thank you.

    UPDATE: We will be continually updating this post with links to news and blogosphere coverage. We have already added new links from the ABA Journal, the WSJ Law Blog, and the Volokh Conspiracy, among other sources.

    The fresh links will appear AFTER THE JUMP, so check them out there. Thanks.

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    (Or: Above the Law gets sued!!!)“

    Further Deferrals at Winston & Strawn
    (Plus other goings-on at the firm.)

    By David Lat

    winston strawn.gifThe signals seem mixed in terms of whether the legal profession is on the road to recovery. On the one hand, the pace of layoffs is certainly slowing. On the other hand, firms are taking other steps to keep headcount (and expenses) down. They are not yet in a mode where they need more hands on deck to handle all the work.
    One of the popular approaches is deferral extension, i.e., pushing start dates for incoming associates back yet again. A number of firms have gone down this path. To view our prior coverage, click here and scroll down.
    The latest firm to take this approach: Winston & Strawn. The firm’s incoming associates were previously scheduled to arrive on January 19, 2010. Now, according to a memo issued yesterday by hiring partner Joseph Torres, class of 2009 associates will be starting on one of three dates: February 1, 2010; June 1, 2010; or October 4, 2010.
    Deferral extension details, including the full memo, plus other information about Winston — after the jump.

    double red triangle arrows Continue reading “Further Deferrals at Winston & Strawn
    (Plus other goings-on at the firm.)”

    Morning Docket 11.03.09

    By Kashmir Hill

    scott rothstein.jpg* Florida has its own Marc Dreier. Scott Rothstein is accused of swindling investors. His 70-lawyer firm, Rothstein Rosenfeldt Adler, will dissolve. [AmLaw and Associated Press]
    * Store clerk steals man’s $1 million lottery ticket. The Texas Lottery Commission considers the thief to be entitled to the prize, because he signed the back of the winning ticket. [Associated Press]
    * The Supreme Court will decide whether mutual fund advisors are paid too much. [New York Times]
    * Conman who posed as a lawyer “to win the affections of women” has been jailed for three years. [BBC News]
    * Attorneys for sniper John Allen Muhammad plan to appeal to the Supreme Court to try to prevent next week’s execution. [Associated Press]
    * RIP, Prof. Michael Goldsmith of BYU. [TaxProf Blog]

    Sidley Austin’s Plans for 2010 Law School Grads
    (Plus another testimonial about Brian Schroeder.)

    By Kashmir Hill & David Lat

    sidley.gifThe big news out of Sidley Austin today involves Brian Schroeder, a 2009 Harvard Law School graduate who recently turned himself in for setting fire to a chapel housing the remains of 9/11 victims. Earlier today, the firm told ATL it was rescinding Schroeder’s job offer.

    But there are other developments at Sidley too. Regarding start dates for class of 2010 graduates, a source reports:

    Sidley Austin sent out letters regarding their deferral program. The details are a January 2012 start date, not optional. Health insurance coverage starting June 1, 2010 (thank goodness), and a stipend of $5000 / month starting January 2011. As usual, no stipend if we work for another law firm, and they reserve the right to call us back early if hell freezes over work picks up.

    Sidley declined to comment on its deferral program.

    On the subject of being summoned to work before 2011, we’d tell the tipster: hey, it might happen. As you may recall, some Sidley D.C. incoming associates were contacted over the summer and asked to start early.

    A year and a half is a long time to be deferred. Hopefully members of the class of 2010 won’t get into as much trouble as Brian Schroeder during their time off.

    CORRECTION: As noted in the comments, and confirmed by emails sent to us directly, Sidley is splitting up the class of 2010. Some are starting in January 2012 and some in January 2011 (which is apparently the earliest start date).

    Speaking of Brian Schroeder, we wanted to draw your attention to one reader comment that struck us as funny, as well as yet yet another testimonial about him (to add to the prior ones).

    Check them out after the jump.

    double red triangle arrows Continue reading “Sidley Austin’s Plans for 2010 Law School Grads
    (Plus another testimonial about Brian Schroeder.)”

    Non-Sequiturs 11.02.09

    By Kashmir Hill

    monopoly-go-to-jail-card.jpg* Will work for food free. [Craigslist]
    * An argument against privatizing prisons? [New York Times]
    * County jail doesn’t sound so great either. [Ann Arbor Chronicle via Daily Kos]
    * For the iPhone obsessed. [Business Insider]
    * Nothing like a Justice Stevens podcast to get you through a marathon. [Concurring Opinions]
    * Looking for a new reason to hate on Goldman Sachs? [McClatchy Newspapers]
    * Baby monitors can be used for good or for evil. [Chicago Tribune]

    Sullivan & Cromwell’s Life-or-Death Mistake?
    Leading law firm blows deadline in death penalty case.

    By Kashmir Hill

    Sullivan Cromwell LLP new logo Sullcrom.jpgMore than a decade ago, Cory Maples of Alabama murdered two people. After an evening of heavy drinking, playing pool, and riding around in a friend’s car, Maples killed two friends, shooting them execution-style.

    According to court documents, he signed a confession, “stating that he: (1) shot both victims around midnight; (2) had drunk six or seven beers by about 8 p.m., but ‘didn’t feel very drunk’; and (3) did not know why he decided to kill the two men. Faced with this confession, Maples’s trial attorneys argued that Maples was guilty of murder, but not capital murder.”

    A jury found Maples guilty and sentenced him to death.

    Maples appealed his capital murder conviction with the help of attorneys at Sullivan & Cromwell:

    Maples subsequently filed a petition for post-conviction relief pursuant to Alabama Rule of Criminal Procedure 32, claiming, inter alia, that trial counsel was ineffective for failing to investigate or present evidence of: (1) Maples’s mental health history; (2) his intoxication at the time of the crime; and (3) his alcohol and drug history.

    The trial court dismissed Maples’ Rule 32 petition, and sent notice of the decision to the attorneys at Sullivan & Cromwell and to local Alabama counsel. There was a 42-day period for filing a notice of appeal, but all the lawyers involved dropped the ball on the case, PepsiCo-style.

    So what’s the explanation for S&C’s missing the deadline for filing an appeal?

    double red triangle arrows Continue reading “Sullivan & Cromwell’s Life-or-Death Mistake?
    Leading law firm blows deadline in death penalty case.“

    Do Jon Mechanic and Fried Frank Have the ‘Un-Midas’ Touch?

    By David Lat

    Fried Frank logo.jpgWhat role do lawyers have in advising their clients on business matters? Some might say: None.
    “The client decides on the business objective, and the lawyer helps the client reach that objective, as long as it’s legal,” this line of thinking goes. “And why would you want lawyers giving business advice anyway? They have no business training — and judging from how large law firms have fared in the Great Recession, they don’t seem to be particularly good at business either.”
    On the other hand, one thing we commonly hear from the in-house lawyers we speak with is that they do give a combination of legal and business advice (not surprising, given that they have one client, which they want to see prosper). And some top law firm lawyers also get involved in the business side of things; they’re dealmakers in their own right, not just the folks who “paper up” the deals dreamed up by investment bankers. E.g, H. Rodgin Cohen of Sullivan & Cromwell, who played a major role in various bank M&A deals last fall.
    Jonathan Mechanic Jonathan L Mechanic Jon Mechanic Fried Frank real estate.jpgFried Frank partner Jonathan Mechanic (pictured) — chair of that firm’s high-powered real estate group, with a top ranking from Chambers and Partners — is arguably the real estate world’s answer to Rodge Cohen. In the New York Observer, Dana Rubinstein began an August 2008 interview with Mechanic by citing a study declaring him to be “the best-connected and most powerful real estate lawyer in the world.”
    But at least one ATL reader holds the opinion — a minority opinion, it should be noted — that Jon Mechanic’s track record isn’t so stellar.
    The bill of particulars against Jon Mechanic and Fried Frank, after the jump.

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    Breaking: Cravath Bonuses Are Out (and Down)

    By David Lat

    animated siren gif animated siren gif animated siren gif drudge report.GIFYear-end bonuses have been announced at the market-leading firm of Cravath, Swaine & Moore. And they are even lower than last year’s Cravath bonuses.
    But look, this is 2009. Welcome to the Great Recession. Your true bonus is: you get to keep your job. That shouldn’t be taken for granted, even at Cravath.
    Anyway, here’s the Cravath bonus scale for 2009 (via the WSJ Law Blog):

    Class of 2008 — $7,500
    Class of 2007 — $10,000
    Class of 2006 — $15,000
    Class of 2005 — $20,000
    Class of 2004 — $25,000
    Class of 2003 — $30,000
    Class of 2002 — $30,000

    Cravath Swaine Moore LLP logo small.JPGCravath’s bonus announcement is always important because the market tends to follow Cravath — as it did last year. Skadden’s 2008 bonuses, at roughly twice Cravath’s levels, were ignored.
    Could this year be different? Are the Cravath bonus levels low enough such that a firm of similar or even lower prestige will try to better CSM? Or will other Biglaw shops simply avail themselves of the political cover provided by Cravath — which is arguably what happened last year, when Skadden’s generous bonuses went unmatched (excluding Wachtell)?
    So, readers, what do you think? Read the FULL MEMO, take a READER POLL, and COMMENT — after the jump.

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