The glory days of 2006 and 2007 may never return. They call it the “new normal” for a reason.
But things at least can get better incrementally. And this is what might be happening in the in-house world, according to two new surveys. These studies report that in-house legal departments are increasing both their hiring and their spending — which could be good news for the law firms that service them, as well as all the Biglaw attorneys who dream of making the jump to in-house.
Don’t say that we never give you happy news around these parts….
Lawyers pad bills. They shouldn’t, but they do. Sometimes it’s an honest mistake born of bad record-keeping. Sometimes it’s a genuine cash grab. Other times it’s brought on by an honest desire to exact a tiny measure of revenge on a client whose indecisiveness or incompetence has made the lawyer’s life hell.
But when lawyers unethically pad these bills, there’s little chance of getting caught when there’s just an extra 30 minutes billed to “further work” here and there. But if a lawyer were to, say, start billing the same client for 29-hour days, it’s really only a matter of time until the jig is up.
If you think no lawyer is dumb enough to bill the same client for a 29-hour day, you’d be wrong….
I wrote several weeks ago about why I should waste time — why I should attend some meetings at which I’m not really necessary. I should do this to learn what folks on my team are doing on a daily basis, to have a chance to work one-on-one with more people who ultimately report up to me, and to improve employee job satisfaction by having a manager show interest in employees’ work.
To my in-house eye, that’s not “wasted” time; it’s “invested” time — time that improves our collective well-being, even though it doesn’t result in my having completed a specific task that the organization needs accomplished.
As I think about it, I see an awful lot of these things in-house that I would never have seen at a law firm. For example, several weeks ago, we decided to invite a junior in-house lawyer to attend meetings of our “Corporate Ethics Committee,” at which a fairly senior group addresses, among other things, important issues that arise through our corporation’s anonymous ethics hotline. We didn’t invite the junior lawyer because his or her attendance was important to the committee’s deliberations; rather, we thought that attending the committee meetings would provide helpful training and give the junior lawyer more exposure to senior people in the department.
At a law firm, everyone would spit in your eye if you suggested that a junior person should unnecessarily attend a meeting simply for the sake of training and exposure: This would constitute either over-billing the client or wasting potentially billable hours. . . .
Partners versus associates in Biglaw. I am not referring to the annual end-of-summer softball game. This is more serious. Many groups are flat or slow. Even though associates leave firms and get replaced very slowly, or not at all, and even though incoming associate classes have shrunk, Biglaw firms make every effort to keep associates as busy as possible. For one, associates are expensive, with their high salaries and real benefits packages. Plus, it is always easy to generate some make-work for them, particularly when there are not as many around as there used to be.
These efforts are surely welcomed by associates, but at what cost to the firm’s other timekeeping employees — the partners? Does the fact that a partner “got elected,” has the title, signed a partnership agreement, and has money (either their own or a friendly bank’s) in the firm’s capital account mean that he or she should have first dibs on all available work? Put another way, do I have the right to insist that a fellow partner assign me work rather than an associate? Do I need to make sure my fellow partners are all fully busy before I assign some of my hard-earned client matters to them? Assuming that the clients do not care about who services a particular matter (e.g., it is a new client who only cares about the price and not who is providing the service), these are very difficult questions. Unfortunately for many in Biglaw today, they are also timely….
What sense does that make? What kind of robber only takes two-thirds of your money? Not even a lawyer does that.
– Cheryl Coleman, attorney for Raheem Hines, a client who faced life in prison for a violent mugging. Coleman’s closing argument that Hines could not have committed the crime because he left the victim with money in pocket resulted in an acquittal.
To pass the time while commuting, I like to listen to podcasts. If ATL had a podcast I would add that to my listening rotation (especially if Lat is able to pull in sitting judges to guest host or as interview subjects). But this is not a column about podcasts. Though the idea for this contest came from a podcast I was listening to, the B.S. Report with Bill Simmons. The host was interviewing a former ESPN colleague, and they were discussing how certain statistics in baseball are misleading.
An example? Wins for pitchers. Apparently there is a movement to abolish that statistic. Why? Because a pitcher can pitch a terrible game, and still come away with the win, assuming his lineup bails him out. Conversely, a pitcher can pitch a beautiful game, and lose just because his hitters decide to approach their at-bats like the pudgy partner from bankruptcy at the annual intra-firm softball game. To prove the limited utility of using wins as a proxy for determining who is the best pitcher, consider the following. By nearly all accounts, Clayton Kershaw of the L.A. Dodgers is the single most dominant pitcher in baseball today. Unsurprisingly, he is reportedly in line for the richest (around $30 million a year or so) contract extension for a pitcher — ever. But he has fewer wins this season (so far) than Bartolo Colon, a 40-year-old journeyman pitcher (on his sixth team, and nearly a decade removed from his last All-Star game appearance), who is making non-equity service partner money ($3 million) by baseball standards. Wins simply do not tell the whole story.
Biglaw has its share of statistical shortcomings….
We don’t do enough reporting about the struggles of contract attorneys. We should do more, because that’s where the jobs are. Biglaw firms have been able to keep traditional associate hiring down thanks to an explosion in the use of contract attorneys. Getting one of these hourly wage jobs actually represents success in a market saturated with underemployed attorneys.
Now I remember why I don’t do a lot of reporting on contract attorneys: acknowledging that these, and not high-paying traditional associate salaried positions, are the jobs coming back in the “recovery” is terribly, terribly sad.
This might come as a shock to you, but being a document monkey on an hourly wage is not all that it’s cracked up to be. These hard-working people generally want to work as much as possible (kind of the opposite of traditional associates) for obvious reasons. But they are often frustrated by all sorts of bureaucracy and poor treatment in their quest to wring some value out of their J.D. degrees.
We have some emails detailing the struggles of one group of contractors working on projects in D.C. Hopefully, this will inspire other contract attorneys to share their experiences with “the new normal”….
Last week, I wrote about face time considerations for associates. In Biglaw, face time is important for partners as well, albeit in a different way, with a significant exception for “pure” service partners.
Service partners are like associates when it comes to face time, with one major difference. In contrast to the often large constituency that associates need to please, your typical service partner needs to focus more exclusively on the specific rainmakers who provide them their work. That is why you will frequently find a service partner who is dependent on a particular rainmaker trailing that rainmaker around the office like a faithful Lab trailing a treat-bearing little kid. Or never leaving until the rainmaker leaves for the day. Vacations? Either timed to the rainmaker’s vacation, or planned with the idea that one would be perfectly accessible should the rainmaker call. Most of the time, this behavior by service partners happens naturally. When you have limited sources of work, it is folly not to stay close by those sources on a constant basis.
As important as face time is for senior and mid-level partners, it is even more important for junior partners….
Regular readers of Above the Law know about the class action lawsuits brought against some law schools accused of fraudulently inducing students to enroll. For example, ATL covered the great legal work evident in the dismissal of a lawsuit brought against New York Law School, and the affirmation of that dismissal on appeal.
What you might not know, however, is that cooking schools, including the California Culinary Academy in San Francisco, were defendants in similar litigation long before law schools were. I knew Ray Gallo, the attorney prosecuting some of those landmark cases, so I followed them closely. Those lawsuits established a kind of model for proceeding against law schools. Unfortunately for the cooking schools, their litigation results were significantly worse than those obtained to date by the law schools.
Shave, get dressed, grab your gadgets (firm-issued Blackberry, personal phone, tablet, etc.,) and head out the door. Car, train, ferry, subway — whatever it takes to get you to the office. Log into your computer, connect your phone for a charge, and head down the hall for a cup of coffee from the pantry. Throw out “good morning” as you pass people along the way. Grab your coffee, sneak a look at the vending machine, decide against starting your day with an 800-calorie cinnamon-glazed “bun,” and head back to your office. Dive into your morning inbox triage, and hope no one bothers you until your first conference call in 30 minutes. Congratulations on making it in for your next day in Biglaw’s Class A splendor.
Eight to fourteen hours later (depending on your seniority, amount of work, and level of domestic tranquility), it is time to pack up. To do it again the next day. You may not be happy with how things are going for you career-wise, and you may get jealous when your tech-sector friends brag about their 5:30 p.m. “after-work” pedicure and pastis-tasting session, but at least you were present at work for the day.
Face time is a concept that has gotten more media attention than it probably deserves. But let’s give it a little more….
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.
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