Bankruptcy

Will Bingham go the way of Patton Boggs or Dewey & LeBoeuf?

One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code. Last week, however, Judge Klein approved the plan of adjustment for Stockton that left public pension obligations intact over the vociferous objection of Franklin Investments, a major city bondholder whose claim was substantially reduced.

* U.S. Bankruptcy Judge Steven Rhodes approved the deal tossing about $7 billion of Detroit's debt. He declared that it was now time to restore democracy to Detroit. We'll see how that turns out. [The Detroit News] * How many law schools are in dire economic straits? Try 80. [TaxProf Blog] * Professors Eric Posner and Glen Weyl think the answer to global income inequality is low-paid migrant labor. It’s not entirely as crazy as it sounds. But it’s still kinda crazy. [The New Republic] * On the other hand, economic inequality could be greatly exacerbated by technology anyway. [Lawyers, Guns & Money] * Life imitates Shawshank. [Clarion-Ledger] * Attorney and author Lawrence Otis Graham explains how no amount of economic or educational privilege can fully shield African-Americans from racism. [Washington Post] ** A women's group pledges to stand up for victims of harassment on Twitter. Not to discount some of the vile stuff women are subjected to on Twitter, but it's possible that Twitter is rife with gender-neutral horribleness. [What About Clients] * That Sixth Circuit marriage equality opinion is… well, fundamentally wrong about how constitutional democracy works. [Detroit Free-Press]

Is bankruptcy practice slow right now, and what will happen to the dismissed lawyers?

How bad are things looking at Bingham right now?

* “When a law firm is on a verge of insolvency, the last thing you want is for the most productive partners to leave.” The latest ruling in the Dewey & LeBoeuf case has Biglaw partners talking about “run[ning] for the exits.” [New York Law Journal]

* Oh mon dieu! Thanks to a botched French translation of an English press release, the Cote d’Ivoire Bar Association may file criminal proceedings against two Orrick Herrington & Sutcliffe attorneys for fraud. [Am Law Daily]

* Michele Roberts, the former Skaddenite who’s now the first woman to lead the National Basketball Players Association, thinks women need to learn how to develop business. [National Law Journal]

* It seems that the dean of Brooklyn Law School has willingly signed up to be roasted by some of his students. This might be a bad decision on his part, but he’s a brave human being. [Brooklyn Daily Eagle]

* What’s the “right” number of law schools to apply to, and how can you figure out what the “right” number is for yourself? It’s magic, plain and simple. [Law Admissions Lowdown / U.S. News & World Report]

* Many lawyers may think that Biglaw is in recovery what with its record gross revenues and profits, but if you adjust the numbers for inflation, the overall picture looks pretty grim. Reality certainly does bite, folks. [American Lawyer]

* Please pay up and shut up: Alas, seven partners who sought to dismiss the clawback suits filed against them by failed firm Dewey & LeBoeuf’s bankruptcy liquidation trustee were denied in court this week. [WSJ Law Blog]

* Thomas Jefferson School of Law restructured its debt to avoid default, and now its dean has announced he doesn’t think the school’s enrollment will ever return to its former glory. Aww. [National Law Journal]

* Warren Gladders, the WUSTL Law grad turned bank robber, received 45 years in jail for his getaway shootout with the cops. It’ll run consecutively with his 24-year robbery sentence. [St. Louis Post Dispatch]

* The judge overseeing the Jodi Arias sentencing retrial made the unusual decision to bar the public from watching the testimony of the defense’s first witness. We’re now awaiting Nancy Grace’s anuerysm. [AP]

What are the latest revelations about the state of affairs at troubled Bingham McCutchen?

* Everyone knows Bingham McCutchen is considering a merger with Morgan Lewis, but not many know bankruptcy may be an option. It’s a remote option, but still an option. [Boston Globe]

* When Kaye Scholer moved offices, it left behind most of its library. “It tells you everything you need to know about law firm libraries”: they’re not necessary. [New York Times]

* Everyone loves the Sixth Amendment: Thanks to money from Koch Industries, the National Association of Criminal Defense Lawyers will offer better indigent defense training. [WSJ Law Blog]

* The judge in Adrian Peterson’s case won’t be replaced, despite the fact that he called the lawyers involved in the case “media whores.” Meh, Peterson’s attorney says he’s been called worse. [Bloomberg]

* Gilberto Valle, better known as the “Cannibal Cop,” really wants to go to law school. He’s apparently scored quite well on LSAT practice tests. Do law school ladies look delicious or what? [New York Post]

Ed note: This post originally appeared on Bankruptcy Law Insights. The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case, and has now been fatally wounded by the recent ruling of Judge Christopher Klein in the Chapter 9 case […]

What happens to Bingham if the Morgan Lewis deal doesn't go through?

According to the ATL Insider Survey, these practice groups deserve more (or less) acclaim.

* The United States is launching air strikes against ISIS in Syria and Iraq, but some have been compelled to wonder whether it’s legal under international law. Of course it’s legal, under the Rule of ‘MERICA, F*CK YEAH! [BBC]

* Dewey know whether this failed firm’s former COO can get out of paying $9.3M to its bankruptcy trustee? Dewey know whether we’ll ever be able to stop using this pun? Sadly, the answer to both questions is no. [WSJ Law Blog]

* Marc Dreier of the defunct Dreier LLP has been ordered to testify in person in his firm’s bankruptcy case in Manhattan, but he’d rather stay in the comforts of his prison home in Minnesota. Aww. [Bloomberg]

* Dinesh D’Souza won’t have to do hard prison time for his campaign-finance violations. Instead, he’ll be spending eight months in a “community confinement center,” which sounds just peachy. [New York Times]

* Northwestern Law is launching a campaign to fundraise $150M to be spent on an endless supply of Chick-fil-A sandwiches financial aid for students and curriculum improvements. [National Law Journal]

* Could Columbia law professor Tim Wu become New York’s next lieutenant governor? He has a shot, according to the Times. [New York Times]

* Which same-sex-marriage case is the best vehicle for Supreme Court review? [BuzzFeed]

* A federal judge takes the wheel in steering Detroit into the future. [American Lawyer]

* Is it “shameful” of the ALS Association to attempt to trademark the phrase “ice bucket challenge”? [ABA Journal]

* Jury deliberations are expected to begin today in the corruption trial of former Virginia governor Bob McDonnell. [Washington Post]

* Voter ID laws are back on trial, this time in Texas. [New York Times]

* Speaking of Texas, the state seeks to stay a recent ruling that struck down the requirement that abortion clinics comply with standards for ambulatory surgical centers. [ABA Journal]

* When it comes to all of the same-sex marriage cases that are currently before the Sixth Circuit, the deciding vote could be cast by Judge Jeffrey Sutton, a Republican appointee. [National Law Journal]

* Weil Gotshal snagged a partner from right under one of its largest competitor’s noses. Ray Shrock, formerly of Kirkland & Ellis, may someday co-chair Weil’s restructuring group. [WSJ Law Blog]

* “I got the reward that most volunteers get — which is I ended up having to read many, many hundreds of pages.” This Ogletree Deakins partner figured out how to undo Obamacare in his spare time, and all he got were these lousy bifocals. [Greenville News]

* On-campus interviewing season is almost upon us, so we’re going to give you all of the tips you can stomach. Here are a few more ways that you can hit all of your interviews out of the park. [The Careerist]

* Albany Law and the University at Albany are shockingly not already affiliated with each other, but they’re exploring an “operational alliance.” Will that mean fewer faculty buyouts, or…? [Albany Business Review]

* Let’s get ready to rumble! Not wanting to be left out of the party, Oklahoma has also asked the Supreme Court to take a look at its same-sex marriage statute which was recently slapped down by the Tenth Circuit. [National Law Journal]

* Dewey know what financial restructuring adviser Joff Mitchell of Zolfo Cooper said to this failing firm’s partners right before it flopped for good? “Look, there is no way here to save this firm.” Ouch. That had to have sucked. [Forbes]

* The examiner who was appointed to monitor law firm billing for the City of Detroit’s bankruptcy is now questioning Dentons’ fees of up to $27K per month to talk to the press. Whoa there… [Detroit Free Press]

* Working Mother and Flex-Time Lawyers have released the latest ranking of the Top 50 Law Firms for Women. Vivia Chen feels “a bit dirty” after reading the list — and you probably should, too. [The Careerist]

* Leisure Suit Larry’s successors are here to stay for a while: Case Western Reserve Law’s co-interim deans will stay on in their current positions for the upcoming school year. [Crain’s Cleveland Business]

* Nothing demands a SWAT team like a 90-year-old woman. [Lowering the Bar] * Not so much legal, but here’s Princeton Review’s ranking of the best and worst colleges. If you’re looking for hard liquor, head to Iowa City. [TaxProf Blog] * Dewey know what Al Togut’s going to say about law firm bankruptcies. Yeah, I know, but we’re just going to keep riding this pun. [Forbes] * Corruption in New Orleans? Hold on, I need a second to let this sink in. [The Times-Picayune] * Be sure to come by on Wednesday to hear from a panel of general counsel about the transition to in-house work. [Above the Law] * The CFPB is cracking down on debt-collecting law firms. So if you’re a bottom-feeder, the government is coming for you. [Gawker]

* The Second Circuit ruled that the World Trade Center Cross may remain on display in the September 11 Memorial and Museum. Apologies, atheists, but it’s a “genuine historical artifact.” [New York Daily News]

* Howrey going to get money back when judges keep tossing unfinished business claims like they’re yesterday’s trash? We’ll see if such claims will be laid to rest after a hearing later today. [Am Law Daily]

* Paul Weiss had a good get this week, with Citigroup’s deputy general counsel leaving the bank to join the firm — which coincidentally has served as the bank’s outside counsel for two decades. [WSJ Law Blog]

* North Carolina, a state that adopted a ban on same-sex marriage in 2012, said it will no longer defend its law in the wake of the Fourth Circuit’s ruling as to a similar ban in Virginia. Hooray! [Los Angeles Times]

* If you missed it, a judge issued a preliminary ruling against Donald Sterling, meaning that the sale of the L.A. Clippers may proceed. Don’t worry, his attorney says this is just “one stage of a long war.” [CNN]

* It seems that “weed-infused weddings” are a hot commodity in states where the drug has been legalized. Sorry, it may be better than an open bar, but it doesn’t seem like a very classy thing to do. [Boston.com]

* Cheryl Hanna, Vermont Law School professor and praised legal analyst, RIP. [Burlington Free Press]

* The day after the Supreme Court lifted a stay on Joseph Wood’s execution, it took nearly two hours for Arizona authorities to kill him using the very drug cocktail he contested on appeal. [New York Times] * So long, farewell, auf wiedersehen, adieu: Spencer Barasch, the lawyer at the center of some blowback due to his dealings with Ponzi schemer R. Allen Stanford, is now leaving Andrews Kurth. [Am Law Daily] * A dead body was found inside of this West Texas law firm, and the man who was pegged as a suspect claimed he lived at the firm, along with his recently deceased friend. This seems sketchy. [KCBD 11] * Suffolk Law is hosting a contest where students, coders, and entrepreneurs will try to figure out a way to hack the justice gap. Start by creating an app to help new lawyers earn a living wage. [BostInno] * Donald Sterling isn’t going to let the fact that he’s already involved in one contentious lawsuit about the L.A. Clippers stop him from filing another contentious lawsuit about the L.A. Clippers. [Bloomberg] * Joe Francis of Girls Gone Wild infamy is in some trouble with the law. He just got hit with a $5,000 per day fine until he returns two luxury cars to the pornography company’s bankruptcy estate. [WSJ Law Blog]

* Yesterday afternoon, two of D&L’s former executives quietly settled a clawback suit filed by Alan Jacobs, the firm’s bankruptcy trustee. Dewey know how much Messrs. Sanders and DiCarmine had to pay the piper? [WSJ Law Blog]

* GrayRobinson is the latest firm to hop aboard the medical marijuana bandwagon by launching its own regulated products practice group. Lawyers will soon puff, puff, pass around those lovely billable hours. [Daily Business Review]

* Pain at the pump apparently extends to this gas giant’s résumé dumps. A suit alleging bias in ExxonMobil’s hiring moves forward thanks to the Illinois Human Rights Commission. [Washington Blade]

* Facebook’s founder Mark Zuckerberg will be testifying against Paul Ceglia in court to prove that the alleged huckster faked a contract that claimed he owned more than half the company. Like. [Bloomberg]

* It seems that Kid Rock has been subpoenaed over a glass sex toy that was supposedly given to him by a former Insane Clown Posse employee. Kid Rock is probably thrilled to be in the news again. [MLive.com]