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Clifford Chance

Ex-Associate Sues Clifford Chance... for $75,000,000!!!

Clifford Chance LLP Abovethelaw Above the Law blog.jpgPoor Clifford Chance. It seems they just keep on getting sued. First this. Now this, from the New York Sun:

A Haitian woman is suing one of the world's largest law firms for $75 million, claiming that the firm used her only as window dressing because of her race, fired her for complaining about it, and finally blacklisted her in the New York law community.

Caroline Memnon, who is black, says in the lawsuit that despite her $125,000 salary as an associate at the New York office of London-based Clifford Chance LLP, she was never given any real work....

After firing her in 2002, Clifford Chance, known at the time as Clifford Chance Rogers & Wells, "surreptitiously 'blackballed' [her] within the community of New York law firms," the suit says....

"We believe this claim to be without merit and will be contesting the case," a Clifford Chance spokeswoman said.

Did Clifford Chance "blackball" her? Or did they just give her a less-than-stellar job reference, which employers are certainly entitled to do? [FN1]

Two other law firms, Chadbourne & Parke and Manatt Phelps & Phillips, both offered Ms. Memnon employment and then withdrew their offers, according to the lawsuit....

[Ms. Memnon] was hired by Sullivan & Worcester's New York office and began working in February 2007. Sullivan & Worcester terminated her employment that March, though she billed 143 hours in her first three weeks there, which is above the firm's expectation of 150 hours a month, the suit says.

The shortness of her stay at Sullivan makes one wonder if other issues are at work here. Could Caroline Memnon be another Charlene Morisseau -- although probably less fabulous, since the divalicious Morisseau is in a class by herself?

[FN1] Does anyone else remember that Curb Your Enthusiasm episode where Larry David "recommends" someone for a job with Richard Lewis? Larry intends to make the recommendation a tepid one -- "recommend," in scare-quotes -- but Richard doesn't pick up on that. Law firms may be more attentive to such nuances.

Woman Sues Law Firm Over Blacklisting [New York Sun]

An Update on Clifford Chance

Clifford Chance LLP Abovethelaw Above the Law blog.jpgTwo quick items about Clifford Chance, concerning two favorite topics here at ATL: layoff rumors and bonuses. A tipster at the firm told us:

CC/NY has laid off more structured finance associates in the wake of the six associates laid off last October. At least two more structured finance associates have been laid off in February -- one straight layoff and one "pushed out," i.e., strong-armed to leave -- and there are rumors of more to come in other areas as well (such as M&A)....

The morale is low and associates [fear] that the CC/NY of the 2002 Memo vintage has come back. How can a firm which pretends to be one of the New York elite firms resort to layoffs as soon as market has slowed down? This is fantasy.

We contacted the firm, and spoke on the phone with a spokesperson:

"There have not been any layoffs since the six associates affected last October, not in structured finance nor any other practice. There aren't any plans [for layoffs] in any practice area."

"I'm not saying that we don't continually monitor our business and work allocation. But we haven't had layoffs in terms in terms of people being asked to leave for economic reasons. The layoffs in October were in direct response to market conditions in a very specialized product area, rather than a trend."

We're inclined to credit the firm on this. A firm that openly acknowledges layoffs, as Clifford Chance did, has more credibility when it denies layoffs than a firm that sheds a suspiciously high number of lawyers, but claims that everything is "business as usual."

But we do have a correction to our prior report that Clifford Chance paid market bonuses, on an across-the-board / lockstep basis. Read more, after the jump.

Continue reading "An Update on Clifford Chance"

Legal Eagle Wedding Watch 2.11 and 2.17: Spellbound

LEWW logo.jpgWe're back with another installment of the Legal Eagle Wedding Watch, where we weigh the relative prestige and fabulosity of the newlywed lawyers who are brave enough to splash their happy news across the pages of the New York Times.

Here are the latest LEWW hopefuls:

1.) Mindy Jaffe and Per Chilstrom

2.) Jennifer Abrams and David Stier

3.) Christine Pelosi and Peter Kaufman

More about these couples, after the jump.

Continue reading "Legal Eagle Wedding Watch 2.11 and 2.17: Spellbound"

Lawyer Layoffs: A Report from the Front Lines

New York Observer logo small Above the Law blog.jpgAssociate layoffs have been the big news in 2008 thus far. Appropriately enough, they're the subject of our latest column for the New York Observer. Here's an excerpt:

“It's tough. People are scared,” [one] jettisoned Cadwalader associate said. “It’s so rare that this happens. The first-years are freaked out. People are wondering: Is this continuing on a rolling basis, or did they take one big hit? People worry about [the impact on] recruiting efforts, both on a lateral basis and for incoming law students.”

The associate, like the others laid off that day, was given barely more than a week’s notice: His last day of work would be the following Friday, Jan. 18.

He’s getting three months of severance, paid out every two weeks, just as when he was employed. But he’s no longer able to tell prospective employers he’s still at the firm, which he predicts will make his job search harder.

“It’s like dating,” he said. “When you’re with someone, everyone wants you; when you’re on your own, it’s that much harder.”

You can read the complete column by clicking here.

P.S. We've been writing this column for a few months now. The archives are accessible here.

Will Work for Dinner at Nobu [New York Observer]
Lawyers Column archives [New York Observer]

Clifford Chance to... Gay Network!

Clifford Chance CC Above the Law blog.jpgIf you're looking for confirmation of the Clifford Chance bonus announcement we posted yesterday, check out this short article from Legal Week.

In other CC news, the firm is making overtures to LGBT lawyers, in the wake of its own Brokeback Lawfirm scandal. From TheLawyer.com:

Clifford Chance is setting up a lesbian, gay, bisexual and transgender (LGBT) network just months after settling a sexual orientation discrimination claim from former competition partner Michael Bryceland....

Clifford Chance tax partner Stephen Shea, who has been active in setting up the LGBT group, said the firm established the network to further foster diversity, but also to respond to client demand. As reported by The Lawyer (21 May), JPMorgan now asks prospective panel firms for diversity statistics and companies such as Transport for London are following suit.

This is par for the course -- and in the U.S., too. If you want law firms to focus more on diversity, or if you think they focus too much on it already, you need to look to their clients. Much of Biglaw's current emphasis on diversity is being driven by clients: Fortune 500 companies that want to be able to say they have diverse teams of lawyers handling their legal matters.

Clifford Chance Joins the N.Y. Bonus Wars [Legal Week]
Clifford Chance set to launch gay network [TheLawyer.com]

Earlier: Associate Bonus Watch: Clifford Chance Matches (For the Survivors)

Associate Bonus Watch: Clifford Chance Matches
(For the Survivors)

associate bonus watch 2007 law firm Above the Law blog.jpgYesterday we wondered: "[A]re associate bonuses and layoffs just two sides of the same coin?"

The answer, at least at Clifford Chance, would appear to be yes. Just one day after announcing layoffs (of admittedly small scale -- six associates), CC has announced year-end and special bonuses. The bonuses are at market levels and not tied to hours (or being "reasonably busy," whatever that might mean).

Memo after the jump.

Continue reading "Associate Bonus Watch: Clifford Chance Matches(For the Survivors)"

Nationwide Layoff Watch: Clifford Chance

Clifford Chance CC Above the Law blog.jpgThese are interesting times for the world of Biglaw. Some large law firms are feeling so flush they're giving out not one but two bonuses this year. Others are laying off associates. Sharing space in the pages of ATL are dueling features: Associate Bonus Watch and Nationwide Layoff Watch.

Before the next round of bonus news, it's time for some layoff coverage. In the New York Law Journal, Anthony Lin has this report:

In one of the first clear signs that slumping credit markets are causing economic pain at law firms, Clifford Chance on Monday laid off a group of associates in the structured finance area.

John Christian, the partner in charge of the London-based firm's U.S. personnel committee, said the firm had made a difficult "business decision" to lay off the six associates in a practice group that worked exclusively for credit rating agency Standard & Poor's. The lawyers in the group had reviewed the documentation S&P used to rate mortgage-backed securities, the market for which has collapsed in recent months.

"We concluded this work just wasn't coming back," Christian said. He declined to discuss the severance packages offered to the associates, but one of those terminated said they were offered three months' salary with no bonus. Indeed, the associate said the timing of the layoffs seemed designed to deprive the targeted associates, all of whom were relatively senior, of their bonuses.

Interesting. So are associate bonuses and layoffs just two sides of the same coin?

More after the jump.

Continue reading "Nationwide Layoff Watch: Clifford Chance"

Biglaw Perk Watch: Rewards for Big Billers

dinner fancy restaurant Above the Law blog.jpgOur series on the perks or fringe benefits of large law firm life has become somewhat sporadic, partly because we've covered so many of the biggies. To review our past posts, click here, and scroll down.

Today's perk: prizes for big billers. If you really kill yourself during a particular month, racking up 250 or 300 hours on some monster deal or litigation, do you get rewarded for it? Of course you might see your crazy hours reflected in your year-end bonus check. But might you get some other, non-monetary benefit? (And we're not counting being able to show up after 10 on the morning after an all-nighter.)

We don't know if this policy still exists, but a source sent us this interesting information:

When I was at Clifford Chance (f/k/a Rogers & Wells), a legacy Rogers & Wells program was that if you billed 250 in a month, the firm covered dinner for you and a guest (spouse, date, friend, etc...) with no questions asked. It was an amazing program. Historically, the Firm had no limit, but assumed associates would "just exercise the judgment expected of them."

It worked for years until a few "exceptions" decided to add very, very expensive bottles of wine to their orders. I think eventually the limit was set at $500. I know more than a handful of "superstars" tanked their careers by "not exercising the judgment expected of them" and submitting dinner bills for several thousands of dollars.

Anyone know if Clifford Chance still has this special dinner benefit?

We also hear that at WilmerHale, "super-super high billers" get vacation vouchers. Can anyone confirm and/or provide more details?

Update/Correction: Or maybe the WilmerHale workaholics get gift cards? See this comment.

Please discuss, in the comments. Thanks!

A Brokeback Lawfirm for the Other Side of the Pond

Clifford Chance LLP Abovethelaw Above the Law blog.jpgSadly, we'll probably never learn whether former Clifford Chance partner Michael Bryceland was asked to "bend over" (a la Aaron Charney). Unlike Sullivan & Cromwell, CC settled the case quietly, for an undisclosed amount.

Of course, if you have any details, please feel free to send them to us by email (subject line: "Clifford Chance"). Thanks.

Revealed: CC pays out in sexual orientation claim [TheLawyer.com]

Fall Recruiting Open Thread: Vault 21-25

Morrison Foerster 425 Market Street San Francisco Above the Law blog.jpgOkay, folks, you know what to do. Here are the next five law firms up for discussion (in Vault 100 order, with prestige scores in parentheses):

21. Arnold & Porter LLP (7.012)
22. Jones Day (6.932)
23. Morrison & Foerster LLP (6.898)
24. Milbank, Tweed, Hadley & McCloy (6.752)
25. Clifford Chance LLP (6.747)

The virgin territory of the comments is yearning for your touch.

The Vault Top 100 Law Firms [Vault]

Earlier: Vault 1-5; Vault 6-10; Vault 11-15; Vault 16-20

X-Summers: Vampire Girl

X Men small X Summers X Summer Associates Abovethelaw Above the Law blog.jpgWe don't know whether our latest summer associate superhero is also the Clifford Chance Lolita. Whether or not they're one and the same, it's still a worthwhile story:

1. Superhero name: Vampire Girl
2. Special power(s): Sucks your blood, eats your heart out.
3. Summered: Clifford Chance, summer 2007.
4. Claim to fame: "At the now infamous Clifford Chance Corporate Reception on July 12, 2007, this summer got drunk and started biting / making out with random people. The next day, she sent out the email pasted below."

From: [Redacted]
Sent: Friday, July 13, 2007 3:12 PM
To: #NYC: Summers
Subject: apologies

To anyone I bit last night. It was my birthday, I drank far too much, and I tend to be aggressive and bite people. If you were a victim, you can be assured that I am not rabid.

[Redacted]
Summer Associate (not yet admitted to the bar)
Clifford Chance US LLP

Not rabid? Hopefully she's not going into litigation.

5. What happened to her: Nothing; she has her offer.

The usual rules apply: please do NOT name this former SA, or speculate about her identity, in the comments.

If you have a summer associate story for us, please review our submission guidelines, and then email us. Thanks.

Earlier: Prior ATL coverage of summer associates (scroll down)

Summer Associate of the Day Earlier in the Month: The Clifford Chance Lolita

Clifford Chance LLP Abovethelaw Above the Law blog.jpgThis story has been making the rounds in New York summer associate circles. We've known about it for a while, but we wanted to get more corroboration. Now that we've heard the same details from multiple sources, we feel that it's fair game.

In the style of Page Six, we're doing it as a blind item.* Here you go:

A partner at Clifford Chance was seen making out with a summer associate at the corporate reception [on Thursday, July 12]. The two were seen leaving together when a fifth-year associate ran out and told the partner: "Dude, you don't want to do this."

Now THAT is a good associate. The model associate is like an extension of the partner's mind -- the sober part.

So are summer associates fair game? Read the rest of this post, after the jump.

Continue reading "Summer Associate of the Day Earlier in the Month: The Clifford Chance Lolita"

Skaddenfreude: The Clifford Chance Memo

Thanks to our tipsters, and sorry for the delay. We've been having technical difficulties again (but thankfully not as bad as yesterday).

Here's the Clifford Chance memo:

Clifford Chance base salary salaries pay memo.jpg

Associate Bonus Watch: Clifford Chance Matches, Too

stack of bills cash money.jpgPer this posting, which reprints what appears to be the Clifford Chance bonus memo:

On behalf of all the partners, we are pleased to announce the 2006 bonus levels for our U.S. associates. In connection with the annual associate performance review, the Firm will pay bonuses according to the following bonus levels by class:

Class of 1999 and more senior $65,000
Class of 2000 $60,000
Class of 2001 $55,000
Class of 2002 $50,000
Class of 2003 $45,000
Class of 2004 $40,000
Class of 2005 $35,000
Class of 2006 $30,000 (prorated)

Bonuses will be paid to associates in our U.S. offices on January 5, 2007.

Thank you for your dedication and hard work throughout the year. We wish you and your families a happy and healthy holiday season.

Unlike most other bonus memos, the CC memo starts with the most senior class (and biggest bonus), then works its way down. How creative! How wild 'n crazy! Is Associate Bonus Watch fun, or what?

(That said, it's not as much fun as this Clifford Chance memo.)

CC matches [Infirmation / Greedy NY]
Associates Concerns [Clifford Chance LLP via InternalMemos.com]

Musical Chairs: 10.31.06

musical chairs above the law legal blog above the law legal tabloid above the law legal gossip site.GIFTons of moves to report today -- and these are just the highlights:

New Partners:

* Latham & Watkins -- which, as discussed yesterday, is very popular with Supreme Court clerks -- has elected 26 new partners, in offices around the country. That's enough lawyers to start a whole new law firm.

You can check out their names here. If you graduated from law school around 1998, you probably know some of them.

"Magic Circle" Hiring Spree:

The top British law firms -- aka the "Magic Circle" firms -- continue to cast spells over U.S. practitioners, who have been flocking to their American offices in droves.

* Louis Kimmelman, former co-chair of O'Melveny & Myers's international arbitration practice, is heading to Allen & Overy's rapidly growing New York office. Kimmelman regularly appears before the International Court of Arbitration of the International Chamber of Commerce, the American Arbitration Association, and other tribunals.

* Finance lawyers Zarrar Sehgal and Anthony Lopez III, to Clifford Chance (NY), from Milbank Tweed and Cahill Gordon, respectively.

Lateral Moves:

* Corporate and securities lawyer Michael Student, to Brown Rudnick, from Holland & Knight.

* Tax lawyer James Tander, corporate lawyer Patrick de Carbuccia, and real estate lawyer Michael Pollack, to Reed Smith (NY). They come from, respectively, Skadden Arps, Willkie Farr, and Withers Bergman of (New Haven, CT).

Government to Private Sector:

* Sharon McCarthy, a former deputy chief of the U.S. Attorney's Office for the Southern District, to litigation and tax boutique Kostelanetz & Fink, as a partner.

Internal Promotions:

* Paul Tvetenstrand, a partner in the structured finance practice group, has been elected chairman and managing partner of Thacher Proffitt & Wood.

Latham & Watkins Elects 26 New Partners [Latham & Watkins]
NY Partners Switching Firms, NY Lawyers On the Move [NYLawyer.com]
More NY Partners Switching Firms [NYLawyer.com]
Firm Promotes 26 to Partnership [NYLawyer.com]
NY Practice Leader Switches Firms [NYLawyer.com]

In the Future, All Document Review Will Be Done By Dell Customer Support Reps

indian woman from india.jpgNot sure how we feel about this development:

For years, outsourcing has been a dirty word inside the world of white-shoe law firms.... A number of large law firms, though, are starting to tiptoe onto far-flung shores.

The latest is Clifford Chance, one of the largest law firms in the world with 29 offices in 20 countries, which will announce plans today to consolidate and move big chunks of its administrative functions like accounting and technological support to an operation in Delhi, India, by next spring.

Ah yes, Clifford Chance -- already renowned for its spectacular associate morale.

We're sure CC associates will love it when their computer freezes up at 2 a.m. the night before a closing, they call the dubiously-named "Help Desk," and they spend 45 minutes trying to explain the problem to an Indian woman who insists that yes, she really IS named "Rhonda."

On the other hand, outsourcing all boring tasks could be good for law firm associates over the long term. Can Bangladeshis be trained to conduct due diligence?

Law Firms Are Starting to Adopt Outsourcing [New York Times via How Appealing]
Outsourcing: Everybody’s Doing It, Even Law Firms [WSJ Law Blog]
Clifford Chance LLP: Associates' Concerns [Internal Memos]