Deferral Stipend

University of Miami Law School Puts Some Money into Public Service

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Miami law school logo.JPGPlenty of law schools talk about producing attorneys who are able to serve their community. But a new program at the University of Miami School of Law actually puts a little bit of money behind the commitment to public service.
Time magazine featured the school’s new Foreclosure Defense Fellowship this weekend (gavel bang: ABA Journal). The article highlights Miami’s attempts to get recent graduates into the business of serving one of the constituencies that actually needs more attorneys.

Unlike similar legal fields such as bankruptcy, foreclosure is rarely a full-time practice and is often handled by real estate attorneys or legal aid services agencies. Still, more than 3 million property foreclosures were filed in the U.S. last year; South Florida is expected to see more than 150,000 this year compared to fewer than 25,000 three years ago. And while mortgage modifications had been on the upswing in recent months, the Boston-based National Consumer Law Center reported this week that many large banks and other mortgage servicers have decided it’s cheaper to foreclose than to offer more affordable loan terms. Making matters even worse, as many as 86% of foreclosure victims in hard-hit areas didn’t have legal counsel last year, according to the Brennan Center for Justice at the NYU School of Law, which released a report earlier this month.

Miami Law has given eight recent graduates a $10,000 fellowship to do this important work. Obviously, $10K isn’t enough to live on. But instead of raising tuition and bemoaning the lack of public interest lawyers, Miami’s fellowship program is giving its graduates a little bit of help in their efforts to give back to the community.
Above the Law corresponded with Miami law professor Michael Froomkin, who founded the program. More details about it, after the jump.

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Should Public Interest Deferrals Be A Permanent Part of the Biglaw Experience?

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As many of you know, public interest organizations around the country benefited from the recession’s effects on Biglaw. There are many talented graduates of top law schools working in public interest — and being paid by the firms who have no work for them.
It’s a pretty sweet deal for cash-strapped public interest organizations. Some of them don’t want the good times to end. The ABA Journal reports:

Some lawyers are suggesting that sending new lawyers into the field is such a good idea that it shouldn’t be dropped when the recession ends. One of them is Barbara Arnwine, executive director of the Lawyers’ Committee for Civil Rights Under Law.
The programs were “a creative response by the firms to what was a very ugly crisis,” Arnwine told AP. “My wish going forward is that what you can do in bad times you can do in good times.”

My wish going forward is that the sea people come and “take me away from this crappy goddamn planet full of hippies.” I think my wish will come true before Barbara Arnwine’s.
Don’t get me wrong, it would be awesome if there were some sort of training ground where new attorneys could learn some basic lawyering skills. If the training were really good, I bet young attorneys would even pay for the opportunity to be educated. Too bad we don’t have any kind of system of schools that can competently prepare people entering into the legal profession.
Public Interest Lawyer Says Loaned Associates Should Be Permanent Program [ABA Journal]

Incoming Associates at Fenwick Take the Money and Run

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Fenwick West logo.JPGAs regular Above the Law readers know, there are a few firms that are offering “go away” money to their incoming associates. The deal, like ones at Stroock and Pillsbury, is that the firm will give incoming associates a large payment instead of a job, and the incoming associate will quietly go peruse other employment options.
We haven’t really gotten a sense of how many would-be associates would actually consider this offer — until now. Fenwick & West offered its incoming associates $60,000 to stay away. According to our sources, around 40 percent of Fenwick’s 2009 class took the money.
But there is a catch; there’s always a catch.
Details after the jump.

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Incoming Associates, Some of You Aren’t Going to Be Working at Arent Fox

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Arent Fox logo.JPGWe have done a lot of reporting on firms that have deferred their incoming class, and then extended the deferral period. At some firms, it has been an indefinite deferral extension.
So give Arent Fox a little bit of credit. Instead of continuing to string the class of 2009 along, the firm has cried “no más” and just revoked offers to several of its incoming associates.
Arent Fox has confirmed to Above the Law that it has decided to revoke offers to some 2009 graduates who have not yet started at the firm. The firm is giving them $20,000 for the inconvenience of believing they had already successfully secured post-graduate employment.
Maybe Arent Fox read Morning Docket today. We linked to a story in the Atlantic that asked why firms were doing deferrals instead of revoking offers outright.
There has been much gnashing of teeth and rending of garments by would-be Arent Fox first years on Facebook this morning. But we think this comment on a status update captures the general feeling:

I just sent them an envelope with powder in it. Don’t worry, I wore a ski mask when I walked to the mailbox so they can’t trace me.

Please, Arent Fox friends, do not blow your $20K on terrorist activities. Instead stock up on Ramen and a buy a good sleeping bag. It’s going to be a long winter.
UPDATE: We assume the Facebook commenter was joking. Clearly. The wearing a ski mask to the mailbox line is clear parody.
FURTHER UPDATE: Arent Fox Chairman Marc Fleischaker shared some numbers with the BLT:

In all, Fleischaker said, about 12 incoming associates were affected. Washington, which has the firm’s largest office, had “about eight,” New York had “between two and three,” and Los Angeles had one, Fleischaker said. The news was first reported on Above the Law.

Read Arent Fox’s full statement after the jump.

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Baker & McKenzie: For Some, Deferral Extensions Could Lead to Offer Revocation

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baker-logo.gifWay back in June, Above the Law heard rumblings about issues regarding the incoming first-year class at Baker & McKenzie. The class had already been deferred until January 2010, but in June some tipsters reported that Baker was “rescinding” offers. Others claimed that the firm was simply “strongly encouraging” incoming associates to consider alternatives.
Still, some associates poised to start at Baker hadn’t heard anything at all. At the time, we brought these reports to the attention of Baker & McKenzie management. In June, the firm said:

As we’ve already communicated, we have had to make some difficult decisions in a difficult economy. But we haven’t taken the actions you suggest, and our start dates remain January (and, in some cases, earlier).

But that was back in the heady days of early summer. Now, as autumn approaches, Baker seems to be preparing its incoming class for economic reality. This morning, tipsters reported that deferral extensions — or worse — were coming down on at least some members of Baker’s would-be incoming class:

Last night at 10:30, we received an email from the [redacted] simpleton, asking to set up a phone call for this morning. Phone call from hiring partner was as follows:

Economy blah blah blah limited amount of work blah blah blah majority of you will not be starting in January. Starting in January, 5k stipend plus benefits for up to six months. at ANY time during six months, MAY get a call from b&m, have 1-2 weeks to report to work, but absent a major bump in work, not likely to happen. If after June, no call from b&m, “the relationship will end.”

Twelve of 18 incoming associates got this lovely treatment

“The relationship will end” does not sound promising. After the jump, Baker responds to these reports.

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Bryan Cave Offers Incoming Associates ‘Go Away’ Money

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Bryan Cave logo.jpgMy friends, we have a trend. Bryan Cave has become the third firm we know of to offer its incoming associates money to simply go away instead of starting at the firm.
Tipsters report that the firm is offering some associates $70,000 to “walk away” instead of showing up for work. That’s the carrot. This tipster reports the stick:

[A Bryan Cave letter] stated that they are unable to guarantee a start date at this time .. The letter [also] said was that they are unsure if they will need any first year associates before 2011. Shady, shady, shady…

Stroock — the first firm to offer incoming associates go away money — offered $75,000. Pillsbury offered $60,000. So Bryan Cave is keeping up with the market for these kinds of things.
After the jump, a reader poll, and Bryan Cave’s strategy for incoming associates.

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Proskauer Rose and Mintz Levin Kick Off ‘Deferment Extension’ Season

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proskauer rose logo.JPGDo you remember the class of 2009? You know, the kids who should be gearing up to start work in a couple of weeks but are instead sitting around, waiting to get out of purgatory? Don’t look now, but a couple of firms have decided to extend the deferral period for these people, and that can’t be a good thing.
Proskauer Rose’s New York office kicked off the round of deferment extensions last week. A tipster from Proskauer in Los Angeles reported the news:

Proskauer just told incoming L.A. associates that [incoming associates] in New York are getting their start dates pushed back again. It’s all the way back to November now. They told us [in L.A.] before they told New York because they didn’t want us to “hear it on Above the Law first.” [Sheesh.]

The letters have now gone out to all the incoming New York associates informing them of the news. The new start date is November 2, 2010.
Proskauer had already pushed back the class of 2009 to March 2010. But Proskauer has also told the class of 2010 that the earliest they will be able to start is “fall” 2010.
So can we assume that rising 2Ls considering interviewing with Proskauer won’t be able to start until late 2012? For that matter, are incoming Proskauer associates confident that they will ever be able to start at the firm? We reached out to Proskauer, but the firm did not respond to our request for comment.
After the jump, Mintz Levin joins the deferment extension party.

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Good News for Ropes & Gray’s Future Associates

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ropes gray logo.JPGIt seems like the summer associates just arrived, yet many are already packing up their Biglaw bags to head back to school. This may be due in part to shorter summer associate programs this year, but that’s besides the point.

Summer associates departing the offices of Ropes & Gray have big smiles plastered on their faces. The firm has delivered good news, say tipsters:

During the week or two leading up to the end of the summer program, the Partner in charge of the summers met with all the SAs for reviews. In these reviews, ALL SAs got offers. There is not even a buzz about anyone getting no-offered or cold offered!

We checked in with the firm. A spokesperson put a very slight damper on the excitement, but also delivered some good deferral stipend news for 2010 law grads, after the jump.

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Quinn Defers Half of the Incoming First Years in S.F. & Silicon Valley

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Quinn logo.jpgIf you are an incoming first year at Quinn Emanuel’s San Francisco or Silicon Valley office, you are probably on the final stretch of your CA bar exam preparations. If so, please stop reading this post right now. We don’t want to put any extra pressure on you guys.
For everybody else, you might be interested to know that Quinn Emanuel has deferred half of its incoming first year class in those two offices until January 2010.
As we understand it, the firm is not offering any kind of deferral stipend for the affected incoming associates.
Tipsters have been critical of the firm’s decision:

This is a double whammy. First, they hadn’t been deferred at all, were planning on starting in two months, so this is late notice. And second, telling people one week before the bar?!?!? that’s cold.

Well, it’s better than being told between the first and second day of the bar exam.
After the jump, Quinn Emanuel’s managing partner, John Quinn, explains the reason for this decision.

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Weil Gotshal Defers Current Summer Associates to 2011 or 2012

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Weil.gifBig news from Weil Gotshal today. The firm previously deferred its incoming associates to January 2010, with the option of deferring until January 2011 (with a $75,000 stipend).
In recognition of the fact that it will have some of the class of 2009 starting in January 2011, the firm is offering current summers — i.e., the class of 2010 — the option of deferring until January 2012. Above the Law received the following statement from Weil Gotshal:

Earlier today, we informed our 2009 summer associates of the following:
* We are offering each summer associate who receives an offer of permanent employment at the conclusion of this year’s Summer Program the option of deferring his or her start date from January 2011 to January 2012.
* Each incoming associate electing to defer will receive a $75,000 stipend and health care benefits. In order to receive this stipend, the deferring associate must spend 1,000 hours during the deferral year performing some form of Firm-approved public service work in the US or abroad, including interning for a judge, or working for a Firm client.
* An incoming associate may decide to travel or take a paid position during the deferral year. The Firm will only pay the stipend to those people doing public service work. However, the Firm will provide health care benefits to all deferring associates.
* As we did with the successful deferral program for the class of 2009 associates, we will assist those who elect to defer with identifying public service placements, clerkships, and client opportunities.

The earliest current summers can start at Weil is January 2011 (and that is of course dependent on whether they receive an offer from the firm). But the option to defer until 2012 is even more evidence that the class of 2010 could be worse off than the class of 2009.
Don’t even get me started on the class of 2011.
More details from the firm statement, after the jump.

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Ropes & Gray: Defers Current Summers to 2011

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ropes gray logo.JPGIf the class of 2009 is like the main cast on Lost, then the class of 2010 is starting to look like the Tailies. Ropes & Gray has decided to defer its current summer class until “Sometime, 2011.”
Here is the firm-wide memo that all Ropes & Gray associates received last week:

As we recently communicated to summer associates, we will be making offers to them according to the usual standards and in the same numbers as in the past. We have not set a definite start date for them, but it will be no earlier than January 2011. We are encouraging current summer associates to consider pursuing a clerkship or NAP fellowship.

Just like Cravath Skadden, Ropes is promising that its summer offer rate will be commensurate with past years. However, just like Cravath Skadden, Ropes makes no mention of any kind of incoming first-year deferral stipend that it intends to offer to the class of 2010.
UPDATE: We now know what kind of stipend Ropes will be giving to the class of 2010. See here.
In March, Ropes announced its New Alternatives plan, which deferred the class of 2009 to January 2010. Now the firm is encouraging its current summers (class of 2010) to seek a public interest fellowship between law school graduation and the new start date at the firm.
At least current Ropes summer associates should come out of this summer with offers in hand. There are a lot of Biglaw summers that would sign up for that, regardless of when they can actually start after graduation.
Read the full Ropes & Gray memo, after the jump.

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Pillsbury Incoming Associates Still Waiting to Hear When They Can Start

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Pillsbury logo.JPGBack in May, we reported that Pillsbury Winthrop wanted some of its incoming first year associates to defer until January 2010, some to defer until 2011, and others to take $60,000 to go away entirely.
The firm couched all of these options as “voluntary.” But notwithstanding the firm’s choice of language, we reported that Pillsbury needed at least 22 of its incoming class of 54 associates to take the go away money, or defer for a year.
Pillsbury said that it would announce which associates were starting in January 2010 on June 26th. That was Friday.
But according to my iPhone “date and time” application (how people did anything before the iPhone, I do not know) it is Monday, June 29th. And there is still no word from Pillsbury. Here’s one tipster’s report:

As of this AM, still no news from the firm. Yet again, evidence they can’t be trusted – or don’t care about incoming associates. Their written letters to us said we would know by by Friday. I hope this is not how the firm conducts business with clients.

Should Pillsbury associates expect the firm to actually tell them when they can start? Or should they just start hanging out on the Acela and hope to catch a clue on the wind?
More reactions after the jump.

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