Legal services are expensive. Duh. And sometimes clients do not want to pay their bills. Maybe the case outcome wasn’t what the client hoped for. Maybe the bill was significantly higher than expected. There are all sorts of reasons that attorneys just have to say, “Eff you, pay me.”
The thing is, you normally associate breach of contract disputes with litigation or other standard lawyering. Not Biglaw attorneys brokering movie finance deals, and suing when the client doesn’t pay his finders fee.
But Akin Gump filed suit last week against a Hollywood movie producer, for breach of contract and promissory fraud, alleging that he did not fork over the finders fee he owed a firm partner for helping secure loans and finding a distributor for one of his projects.
The firm says Mark Manuel owes a lot of money. So how much does he owe, and which movie is at the center of the controversy?
Obviously, the heartbreaking news this morning is that Twinkies is filing for bankruptcy. Don’t act like I’m the only one saddened by this news. The Wall Street Journal reports that Hostess, the maker of the All-American snack, is carrying $860 million in debt and facing higher costs for sugar, flour, and whatever kind of rendered artery fat they inject directly into the center of those things.
Well, as long as SeamlessWeb is operating smoothly, lawyers will still be able to find adequate ways to become soft in the middle.
But not every lawyer. There are still a few legal types out there who take care of their bodies, and I’m not just talking about Reema Bajaj. I’m talking about lawyers who are actual athletes.
It’s a rare breed, but today we’re going to take a look at two of them. One is an Olympian, while the other is just a record-breaking weekend warrior…
This week we’re pretending that it’s not January by looking back at some of the biggest legal weddings of late 2011. There was a lot of muy prestigioso lawyer matrimony in the last part of the year. Before we delve into the January crop of weddings, which — let’s face it — is often subpar, here are some from the fall that we haven’t featured yet.
The field of contenders for our third annual law firm holiday card contest was more impressive than ever. We received numerous nominations, and we thank everyone who participated. It took many hours to review the plethora of submissions.
We could complain about how some of you failed to follow contest rule #3, limiting the contest to “cards that are unusually clever, funny, or cool…. cards with some attitude, with that extra je ne sais quoi.” But we won’t; the holiday spirit has us in a good mood. You are all wonderful!
But some of you are more wonderful than others. Let’s look at this year’s finalists….
Akin Gump, it seems to me, has taken the reasonable approach for any firm that does not want to be a market leader in terms of compensation: it’s going to wait. Of course the firm is going to match. Most of the firms will end up matching the prevailing market for associate bonuses.
But as far as how much money that’ll be, we just don’t know yet. Instead of making a regular bonus announcement with a flashy bonus scale and the fiction that the numbers bear any kind of relation to the actual profitability of the firm, Akin Gump is just going to wait and see what happens, and then match the market.
Agreeing on this point is former Kirkland & Ellis partner Steven Harper (whose apparent pro-associate stance may make him a sort of Biglaw apostate). As Harper points out, “equity partner profit trees have resumed their growth to the sky. As the economy struggled, Cravath’s average partner profits increased to $2.7 million in 2009 and to $3.17 million in 2010 … That’s not ‘treading water.’ It’s returning to 2007 profit levels — the height of ‘amazing’ boom years that most observers had declared gone forever. Watch for 2011 profits to be even higher.”
And yet associate bonuses remain stagnant at 2009 levels. Furthermore, as ATL commenter “The Cravath Cut” is so fond of noting, when viewed as a percentage of profits, bonuses appear especially measly, at least from the associate p.o.v. (The current $7,500 market rate for first-years is just 0.23% of Cravath’s profits per partner. Back in 2007, first-year bonuses equalled 1.36%.) Despite these numbers, if history has taught us anything, it is that you can kill anyone Biglaw’s rank and file will follow Cravath’s lead.
Cravath is among the most profitable firms in the world. We thought it would be interesting to see what the implications of matching Cravath are for those firms with much lower profit margins. Which firms’ partners willingly take the biggest hit by keeping up? Are these firms arguably more “generous”? After the jump, check out those firms that pay the largest percentage of PPP in bonuses.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.