Cravath

Best Conference Call Screw-Up — EVER

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telephone phone Cravath Swaine Moore Above the Law.jpgThis email has been making the rounds of law firm associates around the country. By the time it reached us, the lengthy forwarding chain included these endorsements (among many others):

“Priceless.”

“Brilliant!”

“This absolutely made my day.”

“Funniest dial-in screw-up in the history of civilization.”

Here’s the original email (with merciful redactions by us):
From: [redacted]@cravath.com
Sent: Tuesday, February 20, 2007 5:25 PM
To: [A long list of recipients at top law firms and investment banks]
Subject:
Please use the following dial-in information for a drafting call tomorrow at 2 PM EST.
Dial-in: (888) 939-2662
Password: 212 474 [xxxx]
[redacted]
Corporate Associate
Cravath, Swaine & Moore, LLP
To enjoy the full experience, pick up your phone and dial the number yourself: 1-888-939-2662.
It will only take you a minute. And it’s a toll-free call.
But if you don’t have the time, read our transcription of the message that awaits you, after the jump.

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Skaddenfreude: The Cravath Memo

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If you were hoping that Cravath was going to up the ante for associate base salaries, we’re sorry to disappoint you. As reported last week in the comments, CSM basically matched the Simpson Thacher scale (after a bit of a delay; perhaps they were deliberating about besting the market).
For your reading pleasure, here’s the official pay raise memorandum from Cravath, Swaine & Moore, which went around on Friday afternoon:
Cravath Swaine Moore associate base salary pay raise memorandum.JPG
Earlier: Previous announcements of law firm associate salary increases (scroll down through “Skaddenfreude” archives)

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Lawyerly Lairs: More About John Beerbower’s Fabulous Pad

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720 Park Avenue New York.jpegHere’s an addendum to our earlier coverage of the lavish, multimillion dollar residence(s) of John Beerbower, a litigation partner at Cravath, Swaine & Moore. John and Cynthia Beerbower lived in a $20 million apartment in 720 Park Avenue (at right), then “downsized” to a $5.1 million pad.
From David Hoffman, a former Cravath associate, over at Concurring Opinions:

David Lat offers this post about a Cravath partner’s recent real estate sale. David makes some hay about a supposed tax break that made the sale even more profitable.

John Beerbower, the partner in question, was the lead attorney at Cravath on a recently resolved pro bono suit on behalf of the City of New York that resulted in a tax refund of $280,000,000 for New York’s police, firefighters, and sanitation workers injured in the line of duty. The refund resulting from the suit was the second largest in NYC history.

Excellent. It’s nice to know that Mr. Beerbower — whom Dave Hoffman describes as “a terrific lawyer and a wonderful person” — favors tax relief not just for Park Avenue tycoons, but for the “little people,” too.
Professor Hoffman confirms our speculation that the Beerbowers hosted lavish Cravath summer associate affairs in their former apartment at 720 Park Avenue. He also provides additional information about its interior, available in the full post .
We thank Professor Hoffman for so menschily supplementing our prior write-up.
David Lat Misses a Trick [Concurring Opinions]
Earlier: Lawyerly Lairs: Tax Breaks for Cravath Partners?

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Lawyerly Lairs: Tax Breaks for Cravath Partners?

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720 Park Avenue New York.jpegThis super-luxurious, prewar building — 720 Park Avenue, one of New York’s most prestigious addresses — is the former home of Cravath partner John Beerbower, and his wife, Cynthia Beerbower. In case you’re wondering, they lived in apartment 7A.
According to Steven Gaines in The Sky’s the Limit (2005), winning admission to this exclusive coop requires a net worth of at least $50 million. Financier Henry Grunwald and Revlon exec Michael Bergerac call it home.
But despite the vast wealth of its residents, 720 Park receives highly favorable tax treatment from New York City:

The New York Times looked at the vagaries of the tax laws — a result of several decades of political compromises — through the uncommonly low taxes paid at 720 Park, which is at 70th Street, and other Upper East Side co-ops. It found that some owners of small two-family brick and shingle houses near Kennedy International Airport paid three times the effective tax rate as their Park Avenue peers.

In the last year, while property tax assessments across the city rose by more than 9 percent, the assessors reviewed 720 Park. But rather than raising taxes on the building, they reduced them. City records show the official market value of the building and the tax burden on it were cut by 12 percent.

Property taxes on 720 Park went DOWN? How on earth did that happen?
Find out the answer, plus information about the Beerbowers’ new home, after the jump.

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Justice Alito’s OT 2006 Law Clerks

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michael lee mike lee christopher paolella chris paolella matthew schwartz matt schwartz gordon todd.JPGsamuel alito jr samuel a alito jr justice alito.jpgSorry it has taken us so long. As promised months ago, we now begin our series profiling current Supreme Court clerks (aka the “October Term 2006″ or “OT 2006″ law clerks).
We’ll be going chambers by chambers, starting with the most junior justice. Here are the four law clerks to Justice Samuel A. Alito, Jr.:

1. Michael S. Lee (BYU ’97/Benson (D. Utah)/Alito)

2. Christopher J. Paolella (Harvard ’99/Alito)

3. Matthew A. Schwartz (Columbia ’03/Alito)

4. Gordon D. Todd (UVA ’00/Beam)

As a member of the Alito extended family explained to us, here’s the key to understanding the Alito chambers: 3:1. This golden ratio perfectly captures the demographics of the OT 2006 Alito clerks. Consider:

1. Familial status: three are married with children, one is not (Chris Paolella — married, but no kids yet).

2. Undergraduate institution: three are Princetonians, one is not (Michael Lee — BYU).

3. Prior Alito clerkship: three previously clerked for then-Judge Alito on the Third Circuit, one did not (Gordon Todd).

4. Religious affiliation: three are Christian,* one is not (Matthew Schwartz — he’s Jewish).

5. College debate: three were gods of the parliamentary debate circuit, and former presidents of the American Parliamentary Debate Assocation (APDA); one was not (Michael Lee).

But we wouldn’t want such commonalities to overshadow the individuality of these gents. Check out our profiles of Messrs. Lee, Paolella, Schwartz, and Todd — after the jump.
* Mitt Romney footnote: Michael Lee is Mormon, which we consider to be Christian. Presidential candidate Romney hopes that evangelical Christians voting in the Republican primaries will agree with us.

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Associate Bonus Watch: Wednesday Open Comment Thread

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stack of bills cash money.jpgAs you can see from the time of our first post of the day, we’ve been in front of our computer for about twelve hours. Our eyes hurt. And we’re hungry.
We need to stand up. Maybe we’ll be really daring and leave our apartment.
Hence this open comment thread. Some of the biggest Biglaws — Cravath, Sullivan & Cromwell, Paul Weiss — have already announced their bonuses. But if Skadden comes along and blows the top off the bonus market while we’re gone, please post it in the comments (along with a link to your source).
We’ll follow up when we return. Thanks.
P.S. We realize this is unlikely. First, Skadden will probably do what everybody else has done, and match the market bonuses (as set last week by Milbank). Second, based on the buzz over at Greedy NY, it seems that a Skadden announcement will probably come tomorrow.
Earlier: Prior ATL coverage of bonuses (scroll down)

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Associate Bonus Watch: Open Comment Thread

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stack of bills cash money.jpgWe have a dinner to attend, so we’re stepping away from the computer for a few hours.
There has been quite a bit of bonus news today, including announcements from Cravath and Cadwalader. And it’s possible that more news might emerge tonight (although we think it’s unlikely, given that it’s after the close of business on the East Coast).
But if any interesting bonus news happens to come in while we’re gone, please mention it in the comments to this post (and provide a link to your source, if any). We will investigate when we return.
And feel free to offer any other bonus-related rumors or rants. Thanks!

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Associate Bonus Watch: More on Cravath and Cadwalader

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stack of bills cash money.jpgConsider Cadwalder CONFIRMED. We just got off the phone with Claudia Freeman, director of communications for CWT, who verified the accuracy and authenticity of the memo that we emailed to her.
In addition, in case you doubt our Cravath coverage — as well as that of the WSJ Law Blog, which reported the news shortly after we did — then we have some more proof for you.
Check out a scanned version of the original Cravath memo, after the jump.

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Associate Bonus Watch: Cravath Announced; Cadwalader Rumored

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stack of bills cash money.jpgAs predicted, Cravath announced its bonus structure today. They’re paying the same bonuses as they did last year. In other words, they’re matching this year’s Milbank bonuses — except for the most senior classes, whom they’re paying $5,000 less. C’mon, Cravath partners, can’t you cough up another $5K for your most senior drones?
Here are the numbers, from a source within Cravath:
2006 — $30,000 (pro-rated)
2005 — $35,000
2004 — $40,000
2003 — $45,000
2002 — $50,000
2001 — $55,000
2000 — $60,000
1999 — $60,000
Update (4:30 PM): The WSJ Law Blog has also reported on Cravath’s 2006 bonuses. The firm declined comment.
In addition, rumor has it that Cadwalader has announced and matched Milbank.
Update (5:07 PM): Cadwalader is CONFIRMED. Details here.
We reprint the purported verified CWT bonus memo, as well as the Cravath bonus memo, after the jump.

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Associate Bonus Watch: Has Cravath Announced?

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stack of bills cash money.jpgThat’s the latest rumor over at Infirmation/Greedy NY. As for numbers, they are said to be the same as last year’s Cravath bonuses.
Caveat: This is UNCONFIRMED. If you can confirm or have a memo, please email us (tips AT abovethelaw DOT com). We’re contacting our own Cravath sources and will get back to you shortly.
Update (11:16 AM): According to multiple Cravath sources, there has been no announcement yet. But one is expected VERY SOON:

We think there will be an announcement tonight. Rumor is that Cravath will not top, only match.

If Cravath matches Milbank, it will essentially be matching the 2005 Cravath bonuses, which ranged from $30,000 to $60,000 (identical to this year’s Milbank bonuses, except with a lower ceiling). To match Milbank exactly, Cravath would need to bump up its top bonus to $65K (from last year’s $60K).
Cravath Announces [Infirmation/Greedy NY]
Cravath 2005 Bonuses [Law.com]
Earlier: Prior ATL coverage of bonuses (scroll down)

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