David Lat is the founder and managing editor of Above the Law. His writing has also appeared in the New York Times, the Wall Street Journal, the Washington Post, New York magazine, Washingtonian magazine, and the New York Observer. Prior to ATL, he launched Underneath Their Robes, a blog about federal judges. Before entering the journalism world, he worked as a federal prosecutor in Newark, New Jersey; a litigation associate at Wachtell, Lipton, Rosen & Katz, in New York; and a law clerk to Judge Diarmuid F. O'Scannlain, of the U.S. Court of Appeals for the Ninth Circuit. David graduated from Harvard College and Yale Law School, where he served as an editor of the Yale Law Journal. He has received several awards for his work on ATL, including recognition as one of the American Lawyer’s Top 50 Big Law Innovators of the Last 50 Years; one of the ABA Journal’s Legal Rebels, a group of pioneers within the legal profession; and one of the Fastcase 50, "the fifty most interesting, provocative, and courageous leaders in the world of law, scholarship, and legal technology." His first book, Supreme Ambitions: A Novel, will be published in 2015. You can connect with David on Twitter and Facebook.
In yesterday’s post about Cravath, Swaine & Moore starting up a bankruptcy department, to be launched by lateral hire Richard Levin (from Skadden), we wrote:
Cravath isn’t big on lateral hiring. When they hired tax lawyer Andrew Needham away from Willkie Farr & Gallagher in 2005, he was their first lateral partner in more than six decades (per Wikipedia).
Nor has Cravath been into bankruptcy work. Even though many other white-shoe firms have entered that historically “icky” practice area, CSM has stayed on the sidelines.
The statement that Cravath has avoided bankruptcy work was in error. From a knowledgeable tipster:
I want to correct your assertion that Cravath has traditionally stayed away from bankruptcy. Cravath historically has been very involved with bankruptcy and insolvency — Paul Cravath himself was the leading railroad insolvency lawyer of his generation, helping JPMorgan and the like swindle railroad bondholders out of billions.
For the bankruptcy geeks among you, our source schools us further, after the jump.
“In an effort to uphold the rule that the Masters of the Universe can pretty much get away with anything simply because they’re the Masters of the Universe (see, also: Jobs, backdating), a federal judge has ruled that Goldman cannot be included in a lawsuit by Fannie Mae shareholders.”
“[T]he SEC filed a lawsuit against a Hong Kong couple, Kan King Wong and Charlotte Ka On Wong Leung, accusing them of insider trading. The couple had purchased $15 million of Dow Jones shares prior to the May 1st announcement.”
They liquidated the position after News Corp.’s unsolicited offer to boy Dow Jones, for a tidy profit of $8.2 million. More details here.
3. In the Future of a Defamation Lawsuit, Dimon Is the Law. Here’s a teaser, concerning the lawsuits that are flying between Dow Chemical and a former executive and board member: “It’s the legal equivalent of a John Woo action scene.”
You can check out the full post here.
Don’t get that jail cell ready for Paris Hilton just yet. Hilton’s defense team has launched a last-ditch effort to keep her out of jail after a Los Angeles traffic court judge made international headlines by sentencing the socialite to 45 days in county jail for repeatedly driving while her license was suspended.
Her attorneys have filed a notice of appeal at the courthouse. Though the document does not lay out the grounds for the appeal, her attorney, Howard L. Weitzman, has said the sentence was far too harsh given Hilton’s misdeeds.
We used to specialize in criminal appeals. But you need neither experience nor expertise to conclude that this argument is a legal loser. Here’s a good quip from a prof at Loyola Law:
“I don’t think the Founding Fathers had Paris Hilton’s driving conviction in mind when they enacted the cruel and unusual punishment provision of the Constitution,” said Loyola Law School professor Laurie Levenson.
But don’t count Paris out just yet. More discussion, after the jump.
Some of you have asked us for a new thread to discuss clerkship bonuses. Your wish is granted.*
We’ll kick off this clerkship bonus discussion with some good news. It concerns Sullivan & Cromwell, which first got the ball rolling on clerkship bonuses, by raising to $50K in the wake of the Brokeback Lawfirm scandal.
(Law clerks, you owe Aaron Charney a debt of gratitude. If he sets up an Aaron Charney Legal Defense Fund, you should contribute generously.)
Anyway, here’s the news:
I just got a call from the recruiting coordinator at S&C confirming they are now paying 70K for those with two years of clerkship experience.
Please keep up the excellent work on this front, I desperately want Cleary to match!
A partial summary of where things currently stand in the clerkship bonus market, after the jump.
* We receive many requests to cover X or Y when salary matters are in full swing. We try to accommodate the ones that we can, but obviously there are many that we can’t. Sorry, we are not going to start a “List of Shame” for ERISA boutiques in Topeka that don’t pay $80,000.
The litigation boutique of Susman Godfrey is prestigious. And it is well-paying, especially around bonus time.
It’s also not shy about honking its own horn (which shouldn’t be surprising, given its Texas roots). In fact, Susman Godfrey just issued a press release about its pay raises that might make Gallion & Spielvogel blush.
Here are some excerpts (emphases added):
TOP LITIGATION BOUTIQUE SUSMAN GODFREY RAISES ASSOCIATES SALARIES IN LOS ANGELES & NEW YORK OFFICE
Susman Godfrey announced today a salary increase for their associates in Los Angeles and New York. The compensation package for first year associates joining their Los Angeles and New York offices is $160,000, plus benefits. Already among the best paid associates nation-wide, the compensation package for first year associates in their Houston, Dallas, and Seattle offices is $140,000, plus benefits….
Susman Godfrey also pays year end merit bonuses to associates who have been with the firm for at least one year. Last year, associate bonuses topped out at $120,000. In 2005, some associates received a walloping $150,000 in year-end perks. More commonly, our merit bonuses have accounted for 20% to 60% of an associate’s annual compensation and are far in excess of bonuses paid by our competitors. Thus, associates’ year-end merit bonuses tend to range from an additional $30,000 to $80,000 on top of the base salary.
In some of the comment threads to our pay raise coverage, questions have been raised with respect to summer associates. For the firms that have recently raised associate salaries, people are wondering: Will summer associates be in on the fun?
Our take: Of course they will. Summer associates are traditionally paid at the rate of permanent or regular first-year associates, and we see no reason for that to change.
After all, firms are trying to woo summers. This is why they pay SAs ridiculous amounts of money to do “jack s**t” and go out to fancy lunches. Why would they want to alienate SAs, whom they are trying to convince to return to the firm on a permanent basis, by paying them according to a lower, outdated pay scale?
So if you’ll be summering at a law firm that just went from the $145K scale to the $160K scale, relax. You will surely be paid based on the new going rate. Unless your firm is completely lame, in which case you shouldn’t take their permanent offer. As the old saying goes, “Cheapness in one area suggests cheapness in all areas.”
Several firms that have just raised associate base salaries have officially informed their incoming summer associates that they will be paid according to the new scale. We reprint a representative memo, from Latham & Watkins, after the jump.
There is no longer any doubt: the nation’s capital is on the so-called “$160K scale.” Say good-bye (or good riddance) to the salary differential between (1) Washington-based firms, and (2) the D.C. offices of New York or California firms.
Why? The homegrown firm of Hogan & Hartson just raised associate base salaries, matching the $160K scale in its Washington, Baltimore, and Los Angeles offices (for the 1950 hour track, but not the 1800 hour track).
This means that the other top D.C. firms, like Arnold & Porter and Covington & Burling, have no choice but to follow suit. Failing to match, now that a true peer firm has done so, would give rise to mortification (and deservedly so).
The full Hogan & Hartson memo, after the jump.
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: