Holy Crap

animated siren gif animated siren gif animated siren gif drudge report.GIFThis is, like, WOW. We don’t quite know what to say.

This departure memo, sent by an associate leaving the San Francisco office of Paul Hastings, is extraordinary. It also confirms the rumors — which have swirled about for quite some time, but without confirmation until now — of associate layoffs at PH.

We’re reaching out for comment to the associate in question and to Paul Hastings. But we wanted to put this up ASAP, to break the story first.

Farewell email below (with a handful of minor typos corrected). “Transition Agreement and General Release,” after the jump.

*******************

From: [Redacted]

Sent: Monday, May 05, 2008 10:14 AM

To: [redacted]

Subject: My departure

The circumstances surrounding my departure from Paul Hastings have been deeply disappointing. It is one thing to ignore an email sent as a colleague is waiting to have her uterus scraped after a miscarriage, but it is wholly another level of heartlessness to lay her off six days after that. [Partner X] is the only one who expressed any sympathy after my miscarriage, and I am grateful to him for that.

Paul Hastings LLP Paul Hastings logo PH San Francisco ATL Above the Law blog.jpgA business is a business, but it takes very little to convey some level of humanity to carry out even the most difficult business decisions. We are human beings first before we are partners or associates. Had you simply explained that the department is unable to sustain the number of associates in the office, I would have completely understood. Had you explained that the office had been directed to reduce the number of associates and I was chosen because of my high billable rate and low billable hours, I would have appreciated such directness, even though the consequences of blindly raising billable rates to an unsustainable degree is plainly predictable. What I do not understand is the attempt to blame the associate for not bringing in the business that should have been brought in by each of you and to hide your personal failures by attempting to tarnish my excellent performance record and looking to undermine my sense of self esteem.

The last few months have been surreal, at best. Just last year, I had celebrated my engagement and marriage with many of you. In fact, during the engagement party, the head of the department took my then-fiancée aside to express to him what a great attorney I am and what a great future I faced. Indeed, less than a week before this year’s bizarre performance review, I was again told by the same partner that my work is great and that the slow business in no way reflected on my performance. A week later, I was given a mediocre performance review and told that I should worry about whether I have a future at Paul Hastings. When I asked for specific examples of my alleged deficiencies, I received no response. When I asked for an explanation as to why I had been downgraded in so many performance categories when I received absolutely no criticism throughout the year and my prior year’s review was stellar, I was told that my prior year’s performance assessment may have been “over-inflated.” What a startling response.

After my miscarriage, I had discussed my concern with several associates that Paul Hastings may use that opportunity to lay me off quickly before I have a chance to get pregnant again. Those associates thought it unfathomable that a firm would be so callous and assured me that Paul Hastings isn’t that kind of a place. What a lesson this has been for them – and for me. I would not have anticipated that a partner would tell me one thing and completely renege on his words a week later. I would not have anticipated that a female partner (whom I had looked to as a role model) with children of her own would sit stone faced as I broke into tears just days after my miscarriage. Even a few words of sympathy or concern would have made a world of difference. What kind of people squander human relationships so easily?

If this response seems particularly emotional, perhaps an associate’s emotional vulnerability after a recent miscarriage is a factor you should consider the next time you fire or lay someone off. It shows startlingly poor judgment and management skills — and cowardice — on your parts. If you should ever have the misfortune of suddenly losing something or someone precious to you, I hope you don’t find similar heartlessness as I have.

As for your request for a release, non-disclosure, and non-disparagement agreement in return for three months’ pay, I reject it. Unlike you, I am not just a paid mouthpiece with no independent judgment. I will decide how and to whom to communicate how you have treated me. I find it ironic that you would try to buy the right not to be disparaged after behaving as you have. Your actions speak volumes, and you don’t need much help from me in damaging your reputation.

I attach the proposed release for any associate who may be interested in reviewing its details.

[Redacted]

*******************

And that’s all she wrote. The release that Paul Hastings wanted this associate to sign, after the jump.

Update (5:10 PM): We have heard back from the associate in question, who had no additional comment.

Update (8:20 PM): Previously posted in the comments, but now we can bring it up to the main page. Here is Paul Hastings’s statement, from Eileen King, Global Director of Public Relations:

“We disagree with the person’s description of what occurred, but unfortunately we don’t comment on internal employment matters.”

Update (5/6/08): Blog reactions to this story are collected here. Additional discussion of pregnancy discrimination cases appears here. Lawyer layoffs at Paul Hastings are covered here.

Further Update (5/9/08): The author of the email, Shinyung Oh, has gone public and given an interview. See here.

double red triangle arrows Continue reading “Breaking: A Dramatic Farewell Email
(And proof of Paul Hastings layoffs.)”

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animated siren gif animated siren gif animated siren gif drudge report.GIFGuess we picked our Lawyer of the Day too soon.
Update (2:30 PM): Press conference scheduled for 2:15 p.m., but Governor Spitzer is running 15 minutes late. “I don’t blame him,” said Ben Smith of the Politico, interviewed just now on CNN.
Update (2:35 PM): Jeffrey Toobin, who was an HLS classmate of Eliot Spitzer, described the news as “a total shock.” He said Spitzer has been “nothing but a straight arrow” for many years.
Update (2:50 PM): Still no press conference. Brooke Masters, author of Spoiling for a Fight: The Rise of Eliot Spitzer, was just interviewed on CNN. She noted that this scandal comes at a bad time for Spitzer politically, in the wake of last year’s scandal involving his misuse of the State Police for political purposes.
Update (3 PM): We’re stepping away for a bit, to give a talk at Stanford Law School. We’ll be back online as soon as we can. Some content will be posted while we’re gone (material prepared ahead of time, not Spitzer updates).
Developing… Check back for updates.
Spitzer Is Linked to Prostitution Ring [New York TImes]

animated siren gif animated siren gif animated siren gif drudge report.GIFIt’s very early, but it’s true: Cravath, Swaine & Moore announced bonuses today!!! Here are the numbers:
Class of 2007 — Year end bonus $35,000 (prorated), no special bonus
Class of 2006 — Year end $35,000, special $10,000
Class of 2005 — Year end $40,000, special $15,000
Class of 2004 — Year end $45,000, special $20,000
Class of 2003 — Year end $50,000, special $30,000
Class of 2002 — Year end $55,000, special $40,000
Class of 2001 — Year end $60,000, special $50,000
Class of 2000 — Year end $60,000, special $50,000 (same as 2001)
Cravath Swaine Moore LLP Above the Law blog.JPGUpdate (5:05 PM):

1. No official comment from the firm (we called their spokesperson), but this news is solid. It has been confirmed for us by multiple sources at Cravath, by phone and by email.

2. As noted in the comments, the “special” bonuses will be paid in November (on November 9, to be exact). The year-end bonuses will be paid in December.

100 dollar bill Above the Law Above the Law law firm salary legal blog legal tabloid Above the Law.JPGUpdate (5:40 PM): If you’d like to compare this bonus table to what Cravath (and pretty much everyone else in New York) paid last year, you can check out the 2006 CSM bonus memo over here. As you can see, the year-end bonuses for this year and last year are basically the same; it’s just that this year, there are “special” bonuses that take total compensation higher.
Also, recall that the base salaries in effect in December 2006 were lower than current base salaries. The Simpson Thacher-led move to $160K didn’t happen until January 2007. So between the higher base salaries and the “special” bonuses, CSM associates this year are significantly better off than last year’s batch.
As for timing, last year’s Cravath bonus memo was issued on December 11, 2006. So this year’s bonus announcement comes quite early in the season. The 2006 bonus season was kicked off by Milbank, which announced on December 8, 2006.
Earlier: Associate Bonus Watch [2006]: A Real Milbank Bonus Announcement
Associate Bonus Watch [2006]: Cravath Announced; Cadwalader Rumored
Breaking: Simpson Thacher Raises Associate Base Salaries!!!
Related: Associate Bonus Watch 2007 archives (scroll down)

Aaron Charney Sullivan Cromwell settlement Above the Law blog.jpgYes, the Brokeback Lawfirm litigation has come to an end. No, this is not an April Fools’ joke.
Sullivan & Cromwell and Aaron Charney ride off into the sunset, with Charney a little sore in the saddle — from all the money he’s sitting on. No more “bending over” for this cowboy.
The scoop, from Anthony Lin, appears in the New York Law Journal:

Sullivan & Cromwell said Thursday it had reached a settlement with former associate Aaron Charney, who sued the New York law firm earlier this year for sexual orientation discrimination.

“Aaron Charney and Sullivan & Cromwell have resolved their differences in connection with all pending disputes between them,” the firm said through a spokesman.

Charney’s lawyer, Daniel Alterman of Alterman & Boop, did not return a call for comment.

The settlement, the terms of which are confidential, brings to a close a dispute that had fascinated the New York legal community over the past several months, both with its allegations concerning partners at one of the city’s most prestigious firms and its bizarre twists and turns in the courtroom.

The rest of the piece recites the facts of the case and its procedural history, which will be familiar to ATL readers. But it’s a clear and cogent summary, and you can read the rest of it here.
We’ll have more to say in the morning. In the meantime, have at it in the comments.
Aaron Charney, wherever you are: Good night, and good luck. And if you need any help spending those settlement proceeds — call us.
P.S. Anthony Lin’s article was linked to by Howard Bashman at 10:58 PM, but we’re not exactly sure when the news broke. (We just got home from the Georgetown Law EJF auction, which was great fun.)
Sullivan Settles With Former Associate Who Sued Firm for Discrimination [New York Law Journal]

Cadwalader Wickersham Taft CWT bed bugs bedbugs Abovethelaw Above the Law legal tabloid blog.jpgSources in the New York office of Cadwalader, Wickersham & Taft have informed us that a bed bug has been found on the 20th floor. It is believed that said bedbug infiltrated the premises through a delivery or box shipment. Perhaps it was hidden in a document production from opposing counsel?
Attorneys were notified of this breach in CWT’s bed bug security via email. We haven’t seen the email message, which we understand was protected against forwarding, printing, or copying.
But if you have further details, please post them in the comments (or email us). Thanks!
Update: We like this commenter’s speculation: “Cameron Diaz brought it!”
Earlier: Breaking: Cadwalader Overrun By Bed Bugs!!!
Cameron Diaz at Cadwalader!

yale law school.jpgA first-year student at Yale Law School was found dead in his apartment last night.
You read it here first; the story is developing. More details to appear in this space; refresh your browser for the latest updates.
Update (12:40 PM): We just got off the phone with Bliss Bernarda in Yale’s Office of Public Affairs. She confirmed that a Yale Law School student has died but said the university does not have further comment at this time. We provided her with our contact information, and we will let you know if and when the school issues a statement.
Update (1:05 PM): We are hearing that the death may not have been violent (as some people appear to be assuming) — that he may have died of natural causes. But we don’t have confirmation or details.
Further updates appear after the jump.

double red triangle arrows Continue reading “Breaking: Yale Law School First-Year Found Dead”

Alberto Gonzales 3 Attorney General Alberto R Gonzales Alberto Gonzalez Above the Law blog.jpgIn addition to a story on the Nixon Peabody song controversy — which we’ll do a full post on later, so save your comments until then — the New York Times has this big scoop:

Attorney General Alberto R. Gonzales, whose tenure has been marred by controversy and accusations of perjury before Congress, has resigned. A senior administration official said he would announce the decision later this morning in Washington.

Mr. Gonzales, who had rebuffed calls for his resignation, submitted his to President Bush by telephone on Friday, the official said. His decision was not immediately announced, the official added, until after the president invited him and his wife to lunch at his ranch near here.

Any thoughts on a successor?
Update: We liveblogged the (extremely short) press conference by Alberto Gonzales announcing his resignation. See here.
Gonzales Resigns as Attorney General [New York Times]

steam pipe explosion New York City NYC Abovethelaw Above the Law blog.jpgA steam pipe exploded on Manhattan’s East Side, right in the middle of evening rush hour. One person is dead and more than twenty are injured. Eyewitnesses describe it as “the scariest thing I’ve seen since 9/11″ — a scene of mass hysteria, with “thousands running fearfully” through city streets.
Mayor Michael Bloomberg is giving a briefing right now. In the real-time coverage of these events on the New York Times’s excellent City Room blog, there’s a shout-out to one of your favorite law firms:

6:55 p.m. | Simpson Thacher & Bartlett, a large law firm with offices at 425 Lexington Avenue, at East 43rd Street, was one of many companies to evacuate their workers.

“It sounded at first like thunder, but it just didn’t end. It was a really loud, deep, sustained explosion,” said Andrew T. Frankel, a partner at the firm, who works on the 23rd floor. “We all looked out the window and saw black smoke just billowing up 43rd Street. It was pretty frightening, more for the unknown than anything. Nobody waited for the evacuation warning. Everybody headed for the stairwell and headed out of the building. People were tense, but calm.”

“We did floor sweeps and there’s nobody left in the building except the emergency response team in the lobby,” said an operator who answered calls to employees at the firm.

Not even WP? You know something is up when a Biglaw shop is deserted by 7 PM. On a Wednesday.
If you witnessed this evening’s events, please share what you saw, in the comments.
Steam Explosion Jolts Midtown; One Person Is Confirmed Dead [City Room / New York Times]
One Dead After East Side Explosion [WNBC.com]

dog crap dog poo dog poop dog feces Abovethelaw Above the Law blog.jpgHere’s a development that has Colorado prosecutors saying “oh crap” — quite literally. From the Rocky Mountain News:

A former Democratic Party activist who left dog feces on the doorstep of U.S. Rep. Marilyn Musgrave’s Greeley office during last year’s 4th Congressional District campaign was found not guilty Wednesday of criminal use of a noxious substance.

So what happened? Did the prosecution fail to establish the element of noxiousness?

Ensz’s lawyers never denied that their client left a Musgrave campaign brochure full of feces at the front door of the congresswoman’s office. But they argued that Ensz was making a statement protected by free speech – the poop was a symbol of what she thought of Musgrave’s politics.

“Her only intention of going over there was to make a political statement that Marilyn Musgrave’s politics stink,” attorney Shannon D. Lyons said after the verdict.

Is feces flinging the flag burning of the future?
Woman acquitted of illegal poop use [Rocky Mountain News]

Monica Goodling 5a Monica M Goodling Monica Gooding Alberto Gonzales Above the Law blog.JPGIt’s Good Friday — the Friday before a big holiday weekend. And we all know what that means: a high-profile resignation, timed in an attempt to avoid the news cycle.
Today we bid a fond farewell to the fabulous Monica M. Goodling. As de to Attorney General Alberto Gonzales, Monica Goodling helped coordinate the controversial firings of eight United States attorneys. When called upon to testify about the matter before Congress, she invoked the Fifth Amendment privilege against self-incrimination.
Oh, Monica — you will be missed. Long after you disappear from the newspaper headlines, you will live on in our hearts. We will always carry a torch for you.
Like so many great blonde icons — Marilyn Monroe, Lady Diana Spencer, Anna Nicole Smith — you left us before your time. So it is fitting and proper that we quote from these lyrics, as we mark your passing from the halls of justice:

Marilyn Monroe Norma Jean Above the Law Blog.jpgAnd it seems to me, you lived your life
Like a candle in the wind
Never knowing who to cling to
When the rain set in
And I would have liked to have known you
But I was just a kid
Your candle burned out long before
Your legend ever did

Eternal rest grant unto the Justice Department career of Monica Goodling, O Lord. And let perpetual light shine upon it. May it rest in peace. May her DOJ career, and the careers of all the faithful departed, rest in peace. Amen.
Gonzales Aide Goodling Resigns [Associated Press]
Top Gonzales Aide Monica Goodling Resigns [Washington Post]
Gonzales Aide Who Refused to Testify Resigns [New York Times]
Earlier: Prior ATL coverage of Monica Goodling (scroll down)

No really, it does! The National Law Journal tells us so:
National Law Journal Largest Firms Hire Elite Schools.jpg
Now where’s our Drudge siren gif?
Largest law firms hire from elite schools [National Law Journal]

smell smelly NYU law library.jpgLike the mystery smell that took over the NYU law school library last month, the cause is unknown.
This sounds worrisome. Con Edison is investigating.
This natural-gas odor is being detected in midtown and downtown Manhattan, home to countless law firms. If you’re noticing this smell in your workplace, feel free to share your firsthand account of it (after securing your own gas mask).
Gas Smelled Over Large Area Of Manhattan [NBC via Drudge Report]
Gas-Like Odor Permeates Parts of New York City [Associated Press]