Archive for February 2010

Morning Docket: 02.10.10

By David Lat

Joseph Greenaway Judge Joseph A Greenaway Jr.jpg* The ten Americans detained in Haiti on kidnapping charges seek help from the U.S. government. One of them is represented by WilmerHale partner Reginald Brown (whom we recently interviewed). [New York Times]
* The youngest Guantanamo detainee, who was 15 when he allegedly threw a grenade that killed a U.S. medic, is headed to trial later this year. [Washington Post]
* As predicted, Judge Joseph Greenaway (D.N.J.; pictured) is confirmed, by a unanimous Senate vote, to the Third Circuit. [How Appealing]

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What’s Up with Clerkship Bonuses?

By Kashmir Hill

clerks screwed in recession.jpgHistorically, clerks have had a pretty sweet deal. A year spent with a judge increases their attractiveness to law firms; in the past, this translated to big bonuses for going into Biglaw. During the recession, the deal got slightly less sweet, as firms went a little sour on clerks.
Over the last month, a number of readers have anxiously emailed us about clerkship bonuses. One example:

Have you heard anything about whether firms are lowering or maintaining their clerkship bonuses? My firm said although they gave $50k last year, they are “waiting to see what other firms do first.”

In 2008, our then-survey-guru Justin Bernold created this handy guide to clerkship bonuses, laying out the going rates — ranging from $10,000 to $70,000 — for these attractive recruits. (Of course, the most attractive recruits — Supreme Court clerks, aka the Elect — command six-figure signing fees.)
So what’s happening with clerkship bonuses in 2010? We’ve talked to a few experts and a few tipsters. There’s been some scaling back already. Experts say the market rate for clerkship bonuses may come down, but in their usual fashion, firms appear to be waiting for a big dog to take the lead on that. Could Cravath be that dog?

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Non-Sequiturs: 02.09.10

By Elie Mystal

John Murtha RIP.JPG* Representative John Murtha died just one week after having his gall bladder removed. Coincidence? I had to have my gall bladder removed three and a half years ago, I was terrified until they told me they were using “lasers” — like in Star Trek … cool. Sorry commenters, I remain as strong as an ox. [New York Personal Injury Law Blog]
* The South Carolina Subversive Organization Registration Act is offensive on its face. You don’t even have to get into the obvious money grab aspect to become annoyed. [Going Concern]
* Understanding why law school applications continue to rise despite every observable measure of reason and logic might be the last step to finally nailing down a unified theory of everything. Somebody needs to lock Stephen Hawking, Brent Spiner, and Robert Post in a room until they figure this out. [Business Insider]
* Is it time for laid off lawyers to start doing manual labor? I hope not. Above the Truckstop doesn’t seem like it would be as fun to write for. [Law and More]
* InsideCounsel wonders why Baby Boomer partners can be found in the office long after younger associates leave? I’m not entirely sure, but it might have something to do with the fact that the kids understand that a brick and mortar office is just a little bit obsolete. [What About Clients?]

John Yoo v. Bob Barr Debate Presidential Power
And: Did Yoo just accuse the Bush Administration of ‘incompetence and stupidity’?

By David Lat

John Yoo John C Yoo John Choon Yoo law professor.jpgThis afternoon, the Federalist Society at the University of Chicago Law School sponsored an interesting debate. It featured Berkeley law professor John Yoo, author of the so-called “torture memos,” and Bob Barr, the prominent libertarian and former congressman, debating the following subject: “Presidential Power v. Civil Liberties in Times of War.”
(Executive power is the subject of Professor Yoo’s new — and well-reviewed — book, Crisis and Command.)
Reports on the proceedings from attendees — plus comment from Professor Yoo, who apparently accused the Bush Administration of “incompetence and stupidity” — after the jump.
UPDATE: Photos added, after the jump.

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And: Did Yoo just accuse the Bush Administration of ‘incompetence and stupidity’?“

Bingham McCutchen: Lockstep Base Pay, Merit Bonuses — It’s a Hybrid Plan That Seems to be Working

By Elie Mystal

Bingham McCutchen new logo Abovethelaw Above the Law blog.jpgMaybe Toyota should take a lesson from Bingham McCutchen: don’t try to cut corners when producing a hybrid.

Back in October, Bingham announced that it would be adopting a new “merit-lockstep” hybrid approach to associate compensation. The plan came with the stamp of approval from Bingham partners and associates. And a majority of Above the Law readers also approved of Bingham’s hybrid approach.

Today, Bingham rolled out its hybrid system. The firm is providing true-up, lockstep raises for people who hit 1900 hours. The double bump extends nationally, across all of Bingham’s offices. People who hit 1500 hours will only be getting a single class bump in salary. We understand that only a small percentage of Bingham associates were low enough on hours to be affected by this stratification.

At the low end, people who billed fewer than 1500 hours will have their salaries frozen again.

On the bright side, all of the people who are frozen will have their hours reevaluated in June. If they’re on pace, they’ll get their money.

The Bingham McCutchen lockstep base pay structure is clear and straightforward (see chart after the jump). For bonuses, welcome to the black box that is merit-based compensation.

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What GCs Want

By Kashmir Hill

What Women Want What General Counsels Want What GCs Want.jpgLast week, we dropped by NY LegalTech to find out What’s on the Mind of the General Counsel.

Three GCs were on the panel: Seth Krauss of Take-Two Interactive Software, Inc.; Dawson Horn III of Tyco International; and Jonathan Broder of Conrail. Conrail is, of course, the railroad company. Take-Two is a software and video game company, of Grand Theft Auto fame. Tyco is a well-known manufacturing company, of shower curtain scandal fame.

They provided some insight into the in-house world and what they look for when they hire outside counsel. “”We’re instruction-rich and cash-poor,” said one.

They offered advice to partners and lawyers who want their business. “Know something about me,” said Horn. In other words, Google him. And: “Believe in the cause,” he added.

That’s rather vague. More specific instructions for getting hired by a general counsel, and some advice for fellow GCs, after the jump.
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Update: Heller Ehrman Art Auction Exceeds Expectations

By David Lat

Heller Ehrman small logo.jpgAs we previously reported, a sizable portion of the art collection of defunct law firm Heller Ehrman was sold at auction yesterday. The auction took place at Bonhams in San Francisco, before a standing-room-only crowd.
We submitted absentee bids on the following:

  • lot 1, Pale Orange Begonia (we bid $500; it sold for $1,159);
  • lot 2, Glass of Water (we bid $500; it sold for $671);
  • lot 99, Lover of Time (we bid $800; it sold for $1,830);
  • lot 210, Bonsai and Bicycle (we bid $1,000; it sold for $4,575); and
  • lot 290, Return of the Rice Cooker (we bid $2,000; it sold for $5,185).

All of the items we bid on went for well above their high estimates — bad news for us, but good news for Heller creditors.
So, how much dinero did the auction generate in total?

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Dear In-House Counsel for Macy’s: Buy a Shredder. HTH.

By Elie Mystal

Macys star logo.JPGIn October, we mentioned that the giant department store, Macy’s, was having some trouble disposing of its sensitive documents. Reports surfaced that internal documents, some of which included the Social Security numbers of Macy’s customers, were being disposed of on the streets of St. Louis, in lidless containers.
Now, months after the initial, embarrassing incident, Macy’s is doing it again. Missouri Lawyers Weekly reports (subscription):

Sensitive Macy’s records have again been littering the sidewalks of downtown St. Louis.
The records, meant for disposal, included shoppers’ Social Security numbers, employees’ expense reports, memos from the department store’s attorneys and even a letter from a distressed aunt about a foul-mouthed Santa Claus.

Macy’s — and Federated Department Stores, which owns Macy’s — has had months to fix this obvious problem. Their solution? Wait for it… buy lids for the streetside containers!
Details on this clever plan after the jump.

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Northwestern’s Gender Neutral — Possibly Hermaphroditic — Barrister ‘Rulers’

By Kashmir Hill

northwestern law school.gifA few months back, the Student Bar Association at Northwestern University School of Law got its panties in a bunch over inappropriate language and the “unthinking use of stereotypes.” Saying that you were “raped” by an exam, for example, was offensive to some on campus, said the SBA. (They preferred that Northwestern students engage only in consensual test-taking.)
At the time, we asked:

Is there an epidemic of vulgarity at Northwestern that the SBA is desperately trying to stop?

Apparently so. The school is gearing up for its Barristers’ Ball, and students are offended by language all over again.
The vulgar words this time?

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Update: Philly Shooting Victim Continues To Recover

By David Lat

Edward DiDonato Jr Eddie DiDonato shooting victim.jpgHere’s some good news about Edward DiDonato, the Villanova lacrosse star and son of a Fox Rothschild partner, who was allegedly shot by Gerald Ung, a Temple University law student. From Lacrosse News:

Former Villanova lacrosse captain Eddie DiDonato has cleared all serious life-threatening obstacles and has been taken off his ventilator following a ninth operation 17 days after being shot six times in an Old City altercation, according to his best friend.
DiDonato, a La Salle College High graduate, remains in the Intensive Care Unit and according to Thomas Jefferson University Hospital officials is still listed in fair condition.
Rob Forster, who has served as the DiDonato family spokesman, said his former teammate on the Explorers’ 2004 state championship team has continued to amaze doctors as well as family and friends with his resiliency. DiDonato was near death after the shootings early on Jan. 17 and survived a major scare 10 days ago when his condition became grave due to an infection.

We’re glad to hear about DiDonato’s improved state. We will keep you posted on his condition.
Meanwhile, a legal defense fund has been set up for the accused shooter, law student Gerald Ung.

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Judge to Mitigate Damages Out of Pity For Philip Morris Counsel

By Elie Mystal

Philip Morris logo.jpgA Florida state court judge, Jeffrey Streitfeld, has decided that the largest individual award to a former smoker is excessive. The Daily Business Review (gavel bang: ABA Journal) reports on the good news for tobacco peddler Philip Morris:

Calling the $300 million jury verdict “excessive” and “shocking,” Judge Jeffrey Streitfeld said he would determine a lower award later against tobacco giant Philip Morris USA. He gave no indication when he would rule.
The landmark verdict was reached in November for Cindy Naugle, an emphysema patient who quit smoking in 1993.

There are few things that bother me more than smokers blaming tobacco companies for becoming addicted to their products. Does Philip Morris sell an illegal product? No. Do you need to be galactically stupid to smoke yet not know that smoking is dangerous? Yes. So what is the rationale for suing a company that produces a legal product you’d have to be epically dumb to not know is potentially dangerous?
As a smoker, I feel particularly qualified to say: it’s not Philip Morris’s fault if I get sick. It’s my fault. I take personal responsibility for my own health choices.
Personal responsibility. Seems like a winning argument, doesn’t it? Well, it’s pretty much the argument pursued by Philip Morris’s lawyers. And … it horribly backfired.
Judge Streitfeld has decided to step in to correct the lawyers’ mistake.

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Morning Docket 02.09.10

By Kashmir Hill

hillary clinton.jpg* “Justice Hillary Clinton?” Next up in this traffic-whoring Daily Beast series: “Supreme Court Justice Palin?” [Daily Beast]
* Faegre & Benson partner Robert Matthews and his brother died in a small plane crash over the weekend. Matthews had a mid-air collision while piloting a Cirrus SR20 plane, also killing the other pilot. [Denver Business Journal via ABA Journal]
* NYU grad sues the university for revoking his MBA. [New York Post]
* Why do people pass along Internet links? The NYT says “awe.” Judging from our traffic patterns, we’d add shock-and-awe as a secondary reason. [New York Times]
* Keeping the John Edwards sex tape on lockdown. [Raleigh News & Observer]
* The class-action lawsuit headed by former UCLA basketball star Ed O’Bannon against the NCAA can proceed. College athletes are one step closer to compensation for the use of their images and likenesses in television advertisements, video games and on apparel. [New York Times]
* On Larry Lessig, copyrights, and remixing, to the tune of Lisztomania…. [Julian Sanchez]
* Which is not our favorite Phoenix song. Our favorite after the jump…

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The Prop 8 Judge May Be Gay: Does It Matter?

By David Lat

Vaughn Walker Chief Judge Vaughn R Walker gay homosexual LGBT.jpgWe first heard about this months ago — back in September, from another speaker at the Lavender Law conference. We didn’t mention it at the time, though, since we’re not that comfortable outing people.
But now that the cat has been let out of the bag — or closet, as the case may be — by the mainstream media, let’s… go there. From the San Francisco Chronicle:

The biggest open secret in the landmark trial over same-sex marriage being heard in San Francisco is that the federal judge who will decide the case, Chief U.S. District Judge Vaughn Walker, is himself gay.
Many gay politicians in San Francisco and lawyers who have had dealings with Walker say the 65-year-old jurist, appointed to the bench by President George H.W. Bush in 1989, has never taken pains to disguise — or advertise — his orientation.

Shocking? Not exactly. Judge Walker is a professionally successful white male, with great job security and a six-figure income, who’s in his sixties — and has never been married. A confirmed bachelor, if you will. Who lives in San Francisco. Umm, yeah.
(On the other hand, we hear His Honor’s favorite drink is a Maker’s Mark Manhattan — a fairly butch beverage, despite the maraschino cherry. We’ll stick with our cosmos, thank you very much.)
So this brings us to the question that Ashby Jones posed over at the WSJ Law Blog earlier today: If Judge Walker is gay, what should we make of that fact?

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Non-Sequiturs: 02.08.10

By Elie Mystal

Conrad Murray indicted.JPG* Michael Jackson’s doctor, Conrad Murray, has officially been charged with involuntary manslaughter. How did the alleged crime go down? Well: He came into MJ’s Apartment, he left the bloodstains on the carpet. MJ ran underneath the table, he could see MJ was unable. So MJ ran into the bedroom MJ was struck down, it was MJ’s doom. Too soon? [Popsquire]
* If there was an Alabama version of the Jersey Shore, this guy would be on it. [BL1Y]
* People in D.C. are really freaked out by all the snow. I’m trying to think of a naturally occurring event that would have New Yorkers similarly discombobulated. [The BLT: Blog of the Legal Times]
* I hate having interviews or meetings at coffee places. But in general I hate the concept of a coffee house where people relax, pull out a laptop, and have conversations. That’s what hookah bars are for. [Law.com]
* If the Bushidō code were still around today, wouldn’t Akio Toyoda have to commit hara-kiri?
[Trial Warrior Blog via Blawg Review]

Jailhouse Lawyer of the Day: Shon Hopwood

By Kashmir Hill

Shon Hopwood.jpg“I used to be a bank robber.”

That’s an attention-grabbing lede for a personal essay for a law school application. Or:

“The Supreme Court granted my very first petition for cert. And then ruled in my favor unanimously.”

Shon Hopwood, 34, could start his application with either one of those statements. Convicted of five robberies in Nebraska in the late ’90s, he was sentenced to prison for 13 years, writes Adam Liptak in the New York Times:

Mr. Hopwood spent much of that time in the prison law library, and it turned out he was better at understanding the law than breaking it. He transformed himself into something rare at the top levels of the American bar, and unheard of behind bars — an accomplished Supreme Court practitioner.

Hopwood wrote a petition for cert for a fellow inmate, John Fellers, in 2002. Not only was it granted, veteran Supreme Court advocate Seth Waxman says, “It was probably one of the best cert. petitions I have ever read.”

High praise for a dude who doesn’t even have a law degree…

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Tulane Cancels Class Tomorrow: Students Free to Party With The Saints

By Elie Mystal

Thumbnail image for Bobby Herbert dress.JPGI lived in Indiana for 13 months and 9 days (not that I was counting), so last night’s Super Bowl was a little bit disappointing. The night featured the return of the Manning Face, the ads were pretty boring (I did like the Auto-Tune one, Kash liked Google). A game between the two best offenses in the league came down to a defensive touchdown and (arguably) the best special teams play of all time.
Oh yeah, and the New Orleans Saints won the Super Bowl. That warm fuzzy goodness you feel about the Saints winning for their city totally redeems every slightly annoying thing that happened last night.
The Saints get back to town tomorrow, and it should be obvious that the city will shut down to celebrate. And chances are, they’ll not really be getting back to work until Ash Wednesday.
Tulane Law School knows that its students like to party. And the administration won’t stand in the way. Tulane is shutting down tomorrow.
I just hope the Tulane Law students don’t try to make off with the Lombardi Trophy.
Check out the beautiful message from Tulane’s president after the jump. And Geaux Saints!

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Case Western Law: Maybe They Are Top Tier After All?

By Elie Mystal

Case Western Reserve school of law.JPGWe’ve said a lot about the atrocious ABC television show, The Deep End. One particularly annoying aspect of the show is that of the four — purportedly “best in the country” — first-year associates, one of them graduated from the Case Western Reserve School of Law.
With all due respect to the good people at Case Western, Biglaw types have a hard time suspending their disbelief that even a fictional top law firm would grab an associate from the #55 ranked law school in the country.
But maybe, just maybe, the prestige-obsessed are wrong. Obviously, Clarence Thomas is happy to hire clerks without regard to their schools’ positions on the U.S. News list. And it appears that the kids at Case Western play just as rough and dirty as anybody in the H-Y-S crowd. Check out this email to all Case Western Law faculty and students:

I am very sorry to report that someone has cut some class-related sections out of several copies of a library book. I am sure that the overwhelming majority of you don’t need to be told that this behavior is unprofessional and unacceptable. It is also a serious violation of the law school code of conduct. This is a very unusual occurrence at our school, for which we should all be grateful. Nevertheless, even one such incident is too many.

Somebody at Case Western has read One L a few too many times.
But hey, if the school is being criticized on prestige grounds, maybe it’s time for its students to take academic competition to the next level. Let’s hear from some Case law students about this.

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Vinson & Elkins Makes Good by its Texas & D.C. Associates

By Elie Mystal

Vinson & Elkins logo.JPGA couple of weeks ago, we reported on the Vinson & Elkins bonus payouts. At the time, we noted that associates in New York were generally pleased with the payout, but associates in V&E’s Texas offices — notably, the firm’s Houston office — were not at all happy with their bonuses.
The issue appeared to be that V&E Texas associates didn’t receive a “make-whole” bonus. Some firms have followed Latham & Watkins’s lead and are using the bonus to give back the money that associates lost during last year’s salary freeze.
A couple of days after our post went up, Above the Law started to receive some interesting emails from Vinson & Elkins people in Texas. Here’s an example:

The partners realized they had screwed up and are making good by the associates, giving additional bonuses in the coming weeks. Top performers in Houston will end up making MORE than their counterparts in NY on the full Cravath scale (for the second year in a row). Pretty impressive that they are willing to admit their screw up and fix it quickly.

And it’s true. Instead of sticking to a decision many associates felt was unfair, V&E changed course and put more money on the table.
Details on this reversal of fortune after the jump.

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Looking for LegalTech Linkage?

By Gabe Acevedo

Just a quick note, over at Gabe’s Guide, I’ve posted a bunch of links on LegalTech – New York, as well as a few of the snowpocolapse here in D.C. Still trying to dig my way out over here.
Lazy Sunday Links 2.7.10: The LegalTech Aftermath/Superbowl Sunday/Snowmageddon, Edition [Gabe's Guide]

Jenner & Block: Salaries and Bonuses Come in Low

By Elie Mystal

Jenner Block logo.JPGWe’ve been having some fun documenting the curious game of chicken happening in Chicago. The top firms in the city seem to be waiting for each other to set the associate salary market — even though that market has already been set.

Kirkland set the market by never freezing associate salaries in the first place. Mayer Brown finally blinked and raised salaries. Sidley is still waiting — we’re not sure why, but they are waiting.

At Jenner & Block, “merit-based” salary increases are in effect. But the raise — at least for some people — is nowhere near market salary. One tipster reports:

The situation is bad at Jenner Block. You should write about how cheap the firm is. A title should be something like: “PPP up 33%, Associate Bonuses 33% of Last Years.” Well that is the truth. For the past two years associates who made hours have gotten 5k raises and all others have gotten zero. So, the salary scale, for those that have consistently made hours (worse if you slip a year or have a slow department), is effectively: 160k, 165k, 170k, 180k…. the more senior you get the more the gap between Jenner and the market.

And for bonuses, this year they start at 2k, even for 3rd years.

Well, $5,000 here, $5,000 there, pretty soon you’re talking about real money. I’m sure if our Jenner friends just hang in there for another decade, they will be very happy with their compensation.

According to spokespersons for Jenner & Block, our tipsters are incorrectly reporting their salaries. But the firm isn’t very clear on what salaries Jenner folks are actually receiving.

Details and a statement from the firm, after the jump.

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