All those professional responsibility lectures, and bar prep, and boring CLEs that I attended after becoming a lawyer, and all the boring CLEs I dutifully watched on the Internet after I escaped the probationary period, consistently preached the evils of non-lawyer ownership of law firms.
It raises ethical concerns! It dilutes what it means to be a lawyer! This is a profession, not a business! All the usual complaints from a profession convinced that it’s made up of beautiful and unique snowflakes with unimpeachable judgment.
But the better question is, “Don’t non-lawyers own law firms already?” And to the extent the answer is “of course,” shouldn’t the profession be bending over backwards to approve ownership models that better serve the firms and their clients than the status quo?
Let’s be honest: despite being the Biglaw version of the Titanic, the collapse of Dewey & LeBoeuf could have been worse. Even though the Dewey dissolution constituted the largest law firm collapse in history, many D&L lawyers and staff were able to find new employment. Even Steve Davis, the disgraced ex-chairman of Dewey, landed a new gig.
But not everyone emerged unscathed. Some attorneys and staffers never got back on their feet professionally. Many Dewey partners scored new positions, but not all of them took all of their people with them to their new firms.
And even some partners are still suffering. In fact, one former Dewey partner, now a partner at another major law firm, recently filed for personal bankruptcy….
(Please note the UPDATES at the end of this post.)
* Dewey think you should’ve signed up for the partnership contribution plan? That probably would’ve been wise. One of Dewey & LeBoeuf’s ex-service partners has been forced into Chapter 7 bankruptcy thanks to a clawback suit. [Am Law Daily]
* As long as the job market for new attorneys remains laughable, law schools will continue to make moves when it comes to deep tuition cuts. Say hello to a $30K drop in sticker price, Roger Williams University Law students. [WSJ Law Blog (sub. req.)]
* Syracuse Law’s class sizes keep getting smaller, but it was “strategically managed” — just like the new law building was financially strategically managed on the backs of alumni and their tuition. [Daily Orange]
* A trial date was set for Dzhokhar Tsarnaev’s friends who allegedly tried to cover up his role in the Boston bombings. No word yet on whether any stupid girls have set up fan clubs for them. [National Law Journal]
* The curtains are finally closing on the King of Pop’s life: Lloyd’s of London settled its insurance suit with Michael Jackson’s estate, and Conrad Murray’s involuntary manslaughter conviction was upheld. [AP]
Congratulations to Steven Davis, the former chairman of now-defunct Dewey & LeBoeuf, who recently landed a new job. As we mentioned earlier today, he has been appointed chief legal officer to the government of Ras al Khaimah, one of seven semi-autonomous emirates that make up the United Arab Emirates.
What could be drawing Steven to Arabia? And what are the downsides of the move?
* In his year-end report, Chief Justice Roberts politely asked Congress to make it rain on the federal judiciary in fiscal year 2014, because “[t]he future would be bleak” without additional funding. [Reuters]
* Utah finally asked for Supreme Court intervention in its quest to stop gay couples from marrying, but Justice Sotomayor wants a response from the other side before she weighs in. WWSSD? [BuzzFeed]
* Perhaps Justice Sotomayor saw the humor in this: she just gave a group of nuns a temporary reprieve from having to give out birth control to a bunch of women who have taken vows of chastity. [Bloomberg]
* Where in the world is Carmen Sandiego Steven Davis? Oh boy, Dewey have some news for you! The failed firm’s former chairman is now the chief legal representative for Ras al Khaimah in the United Arab Emirates. [WSJ Law Blog]
* “The Second Amendment does not preclude reasonable regulation.” A judge upheld the majority of New York’s new gun laws as constitutional. Opponents are ready to lock and load on appeal. [New York Times]
* Just because your law school isn’t ranked, it doesn’t mean you can’t dream big. Case in point: one of this year’s Skadden Fellows will graduate from John Marshall (Chicago) this spring. [National Law Journal]
* Judge Richard Leon’s decision in the NSA surveillance case is ripe for review by the D.C. Circuit, and given the court’s new make-up, we could see a very interesting result. Oh, to be an NSA agent listening in on those calls. [National Law Journal]
* With seven business days left until 2014, law firms all around the country are still desperately trying to get paid. Lawyers are working hard for the money — 83.5 cents to the dollar — so you better treat them right. [Wall Street Journal (sub. req.)]
* Who you gonna call? Your local bankruptcy attorney. Alston & Bird, currently housed in Heller’s old digs in Silicon Valley, will head to a new office whose former occupants include Dewey, and Howrey, and Brobeck, oh my! [Am Law Daily]
* Four were arrested in the tragic murder of attorney Dustin Friedland, and each is being held on $2 million bond. One of the alleged assailants has a history of putting guns to other people’s heads. [NJ Star-Ledger]
* “I think it would be wise for the NCAA to settle this now.” Thanks to the Ed O’Bannon lawsuit, the world of college sports will be forever changed, so all those video games you’ve got are now antiques. [CNBC]
* Tom Cruise settled his defamation lawsuit against a tabloid publisher over claims that he’d abandoned his daughter during the pendency of his divorce proceedings. Xenu is pleased by this announcement. [CNN]
It really does get better — and better, and better — for lesbian, gay, bisexual, and transgender Americans.
This past June, the Supreme Court struck down part of the Defense of Marriage Act (DOMA), resulting in more-equal treatment of gay and lesbian couples for purposes of federal benefits. Around the country, 15 states and the District of Columbia now issue marriage licenses to same-sex couples. The Employment Non-Discrimination Act (ENDA), which bans workplace discrimination based on gender identity and sexual orientation, is closer than ever to passage, having already made it through the Senate by a comfortable margin (64-32, reflecting bipartisan support).
Meanwhile, in the private sector, employers are becoming more and more welcoming of LGBT individuals. That’s the top-line finding of the Human Rights Campaign’s latest Corporate Equality Index — in which law firms are particularly well-represented….
* Should Justice Lori Douglas, she of the infamous porn pictures, step down from the bench? Well, she has 324,100 reasons to stay. [Toronto Star]
* And what about Justice Breyer and Justice Ginsburg — should they leave while the Democrats still control the White House and the Senate? [Washington Post via How Appealing]
* A legal challenge to gun control stumbles — on standing grounds. [WSJ Law Blog (sub. req.)]
* Moral of the story: if you want to threaten opposing counsel, don’t do it over voicemail — unless you want to get censured. [ABA Journal]
U.S. Attorney Preet Bharara
* Dewey want more details about the lucrative contracts given to Stephen DiCarmine and Joel Sanders? Most definitely! [Am Law Daily (sub. req.)]
* An interesting peek inside the office of U.S. Attorney Preet Bharara. The S.D.N.Y.’s boss is a big fan of the Boss. [New York Times]
* Now that the merger between US Airways and American Airlines has been approved, US Airways CEO Doug Parker offers a behind-the-scenes look at his company’s response to the government’s antitrust lawsuit. [Wall Street Journal (sub. req.)]
Justice Ginsburg: a full-service wedding provider.
Ed. note: We’ll return to our normal publication schedule on Monday, December 2. We hope to see you at our holiday happy hour on Thursday, December 5 — for details and to RSVP (to this free event with an open bar), click here.
The Dewey nightmare continues for non-settling partners.
Many former partners of now-defunct Dewey & LeBoeuf signed up to join the “Partner Contribution Plan” that was hatched during the law firm’s bankruptcy case. The gist of the Plan: pay a certain sum (which varied from partner to partner) into the pot, and win a release from any future Dewey-related liability.
The main appeal of the Plan was finality, a way of putting the entire Dewey debacle in the rearview mirror. And that appeal was strong: more than 400 ex-partners agreed to the Plan, which freed them up to focus on their post-Dewey lives at new firms.
But a minority of former partners refused to sign on. A lawsuit filed last week against one ex-partner reveals what lies in store for them….
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
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.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: