* “I don’t care if it’s legal, it’s wrong.” President Obama is pointing the finger at companies using cross-border mergers to avoid U.S. taxes, and he wants to put an end to corporate tax inversions. [Bloomberg]
* Thomas Christina of Ogletree Deakins is the lawyer behind the recent circuit split on Obamacare’s state versus federal health insurance subsidies. Blame him or praise him, it’s up to you. [WSJ Law Blog]
* “I think I missed being in the courtroom more than I missed politics.” John Edwards, acquitted in 2012, is making court appearances again, but this time as a lawyer, not as a defendant. [Am Law Daily]
* A lawyer from Georgia hunts alligators in his spare time, and keeps the taxidermied head of one he caught right on his desk. He says it’s “a great conversation piece,” but that’s a pretty nasty paperweight. Eww. [Daily Report via ABA Journal]
* In a face-off with Alec Baldwin, a judge asked the actor to apologize. The combative Baldwin said he’d rather pay a fine, but if he can “[b]e a good boy,” his biking charge will be dropped. [New York Daily News]
Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.
Of the roughly 36,000 partners in Biglaw, roughly 6,800 (18.8%) of them are within a few years of or have surpassed (and then some) the mandatory retirement age. Lawyers 55 or older make up about 1/3 of the practicing partners in the Am Law 200, a figure that will likely hold steady as the tail end of the baby boomer generation ages. Am Law 200 law firms have on average about 34 chairs, executive members, and senior partners whose 35-plus years of experience, client relationships, and leadership must be transferred to a new generation of rising stars. The process is hardly ever smooth and often involuntary.
Most partners in senior vintages begrudge the practice of mandatory retirement; some bemoan that it is an overcautious safeguard or the epitome of ageism. Some claim the practice is supported by scientific studies that link cognitive decline with advancing age — especially after 65, which is about the average for mandatory retirement. However, with advancing medical standards the idea of being forced to retire at 65 may soon seem ludicrous, but for now, how many law firms are prepared to deal with the void left by these partners?
“Low overhead is great!” That is one of our sayings. We recite it all the time — yes, even out loud at meetings — as it is a powerful competitive advantage for a law firm. It seems pretty obvious, but if so, why doesn’t everyone get with this concept?
There is a term informally used to describe how overhead impacts a law firm called “Implied Overhead.” The “Implied Overhead” of a law firm is the cost of everything except the lawyers divided by the number of lawyers. So if you have 50 lawyers and the cost of “everything” except the lawyers is $10,000,000, then you have implied overhead of $200,000 per lawyer.
Our Implied Overhead for last year was about $165,000. Anecdotally I believe that Implied Overhead for major law firms averages about $300,000. (I admit I don’t really have this data for sure; it is just what I have heard.) If your firm has 100 lawyers and implied overhead of $200,000 and the average for major law firms is $300,000, then you have a $100,000 per lawyer competitive advantage over your major law firm competition. Multiply that by 100 lawyers and you just made $10,000,000! And this flows right to the bottom line! If there are, say, 30 partners at this firm, then each partner just got a check for $333,333!
Yikes — did I do that math right? Was that $333,333 per partner merely by reducing the implied overhead? I just double checked and $10,000,000 divided by 30 partners does indeed equal $333,333. That’s a sizable number, so maybe you should read the rest of my article….
* 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]
Dr. N. Robert Riordan is a graduate of NYU School of Law and a former U.S. securities attorney for London- and Sydney-based Herbert Smith Freehills. After 10 years of practice in New York, London and Rome, he made the switch from corporate law to private practice as a clinical psychologist. Dr. Riordan now acts as a therapist to dozens of NYC attorneys. The following is the second of a two-part interview with Dr. Riordan. (You can read the first part here.)
ATL: In addition to professionals like attorneys, whom do you see in your private practice?
The remainder of my practice focuses on couples. I work with two distinct types of couples. First, I see couples whose romantic relationships are in crisis. The goal here is to improve their bond to one another. I happen to see many couples where both parties are professionals, and, most often, each member of the couple is struggling to balance personal and professional demands.
ATL: I would imagine that couples come to treatment for a variety of reasons.
I work with many couples whose connection to one another has been strained by things like demanding careers, childrearing, or an unexpected financial hardship. These couples are looking to recapture the connection that originally brought them together and to start working as a partnership again. Also I work with a handful of couples who are facing specific challenges, like infidelity or the loss of a child.
ATL: Has your training as an attorney prepared you for the conflicts that presumably arise in couples’ therapy?
We were shocked to learn that our much-loved colleague John Allen, his wife Sandra and their sons Christopher, Julian and Ian were on board the Malaysia Airlines flight on route to Kuala Lumpur that crashed in the Ukraine on July 17. Our thoughts are with John’s family and his friends in and outside the office.
All of us who had the privilege of working with John during his 18 years at NautaDutilh came to know him as a kind, down-to-earth and humorous man and many of us have also lost a friend. He will be dearly missed.
When portraying lawyers, television tends to stay away from the horrors of Biglaw. The good versus evil of the criminal justice system tends to get more play; there is more inherent drama when freedom is on the line (and who can resist the ubiquitous chung CHUNG). If any other types of lawyers are represented, it skews toward do-gooders making emotional pleas in court as champion of the underdog or smarmy corporate lawyers finding the loopholes for the rich. But the hard-working cogs that actually make the legal industry churn along go unrecognized.
So what happens when a network sitcom tries to take on Biglaw?
* 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]
We’ve written from time to time about senior judges, the most senior of whom was Wesley E. Brown of the District of Kansas, who remained on the bench until his death at age 104. We’ve even written about lateral moves made by nonagenarians to highly esteemed Biglaw firms, likely performed with the aid of a walker. We’ve never written about centenarian Biglaw attorneys, presumably because there are very few of them, but that’s about to change.
Fear not, clients, for that’s not a blood stain on your legal documents. It’s prune juice, because a 101-year-old lawyer was working on your deal, and he needs to stay regular to keep his billable hours up.
Which Biglaw firm is keeping this extremely senior counsel on its payroll?
If you need it, build it. We needed help. And we saw an opportunity. So we took action, and now have another business as a result. I’ll explain. The need was simple. Because of our work with investors interested in understanding how patent litigation events impact on their investments, we found ourselves needing to monitor many active patent cases, in addition to the cases we were litigating ourselves. At one point, we considered hiring an intern to help with this specific task, at least during the trading day. But we quickly realized that solving this problem required a software-based solution. So we set out to build one. We looked for something available that would do the job, and failed to find anything useful.
Thanks in no small measure to the talent of our programmer, what we built worked. We were able to get automated alerts of new docket entries and opinions directly to our email. And we could do so for multiple cases, alleviating the concern that we would miss an important opinion. Because our clients tend to have sizable investments, there is a premium placed on our ability to let them know of litigation events quickly and to interpret those events for them, so that they could protect their positions or initiate new ones, based on the recently released publicly available information. As a fail-safe, we began having the alerts sent directly to subscribers of our consulting services. And now we have decided to offer it publicly (www.litigationalpha.com) to fellow lawyers, retail investors, and whoever else can benefit from automated alerts generated based off District Courts docket entries and opinions….
Ms. JD is hosting their 2nd annual cocktail benefit to raise money for the Global Education Fund. The event will be held on August 21, 2014 at 111 Minna in San Francisco. Our goal is to raise $20,000 to fund the legal educations of four dedicated law students in Uganda who count on our support to continue their studies at Makerere University during the 2014-15 academic year.
The Global Education Fund enable womens in developing countries to pursue legal educations who otherwise would not have access to further education. According to the World Bank, investment in education for girls has one of the highest rates of return to promote development. In Uganda, more than 45% of women over the age of 25 have no schooling at all, and men are more than twice as likely as women to have access to higher education. Together, we can work to end educational inequality. For more information about the program, please visit http://ms-jd.org/programs/global-education-fund/
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 seven years. You can reach them by email: firstname.lastname@example.org.
We at Kinney Asia have made a number of FCPA / White Collar US associate placements in Hong Kong / China thus far in 2014. Most of such placements have been commercial litigation associates from major US markets, fluent in Mandarin, switching to FCPA / White Collar litigation. Some have already had FCPA experience, but those are difficult candidates for firms to find (this will change in coming years as US firms are now promoting FCPA / White Collar to their 2L summers who are fluent in Mandarin and have an interest in transferring to China at some point).
Legal Week quoted Kinney’s Head of Asia, Evan Jowers, extensively in the following relevant article here.
There is a new trend in the market, though, where mid-level transactional US associates, fluent in spoken Mandarin and written Chinese, are interviewing for and in some cases landing junior FCPA / White Collar spots in Hong Kong / China at very top tier US firms.
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.