Jones Day

We like to talk a lot about prestige around here, but at Cravath, associates are learning that you can’t spend “prestige points” on your student debt repayments.

Branding is a little easier to take to the bank. It’s something that firm managers and leaders work hard to develop and maintain that can directly lead to business opportunities. As we mentioned in Morning Docket, Am Law Daily published an Acritas report on firm branding. The results will surprise the prestige conscious among you.

This list of firms with a stronger brand than the erstwhile bonus setters at CSM is astounding….

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Yeah, I’m shameless, but I repeat: Oxford University Press has just published a great new treatise!

I recently popped open a box and held in my hands an advance copy of a new treatise published by Oxford University Press: Drug and Device Product Liability Litigation Strategy (affiliate link), by yours truly and my former partner at Jones Day, David B. Alden.

Popping open that box is the only compensation I’ll ever get for having written that book, because I’m no longer in the private practice of law (so I can no longer use a publication to try to attract clients) and I negotiated an advance payment to my firm (back when I was a partner at Jones Day) that basically guarantees I’ll never get any royalties from this project. That leaves as compensation only the joy of holding the book in my hands for the first time and the satisfaction of knowing that a few people will find the treatise to be worthwhile.

I’ve now held the book in my hands, so that little thrill is behind me. But the treatise is also worthwhile, and I’ll prove it….

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I am a maverick and a reformer so I started a new program for U of I undergrads to apply in their junior year and we don’t require the LSAT. We have additional essays and an interview instead. That way, I can trap about 20 of the little bastards with high GPA’s that count and no LSAT score to count against my median. It is quite ingenious.

Paul Pless, former dean of admissions at the University of Illinois College of Law, in a 2008 email about iLEAP, a program that offered early admission to University of Illinois undergraduates with high GPAs (and no LSAT scores).

(The reaction of the other party to the correspondence, after the jump.)

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Today we wrap up coverage of the top California partners to work for, as selected by our readers (see Part 1 here).

These six partners have diverse practices that range from real estate, to labor and employment, to IP, and work at some of the nation’s finest firms: Cooley, DLA Piper, Sheppard Mullin, Jones Day, Bingham McCutchen, and Best Best & Krieger.

Let’s find out why associates are thrilled to be working for these partners….

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It’s time to check in on the scandal involving the University of Illinois College of Law and its false reporting on the qualifications of its admitted students. Every time we do look at Illinois, the school tells us that “this time” they’ve figured out the full extent of the problem — and it’s a bigger mess than the last time they piped up.

On that scale, today is no different. When the story first broke in September, Illinois claimed that admissions data had only been falsified for one year. Then, a few weeks later, Illinois said that data for four class years had been falsified. Today, Illinois says it has completed a two-month investigation that cost the school $1 million. Now they’re saying that the admissions data for six class years have been compromised, based on a report prepared for the school by Jones Day and Duff & Phelps.

I wonder how many years of lying Illinois would have discovered if they spent $2 million?

But people will be distracted from the ever growing number of times Illinois is self-reporting it lied to people. That’s because today, Illinois has offered up a sacrificial lamb. There’s a head on a platter, there’s a body on the pyre, and Illinois College of Law would have you believe that it has identified the one, the only, the sole person responsible for this entire scandal….

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It’s hard to say which of these (non-lawyer) wedding write-ups is more cliché-ridden: the one about the two lesbian PE teachers, or the one about the peace activists who keep their income below a taxable level so they don’t give money to the Pentagon. The latter pair are way too busy rummaging through dumpsters to read the Internet, so we feel zero guilt about exposing them to ridicule in the comments. There’s certainly a lot of ridiculous material there.

But on to the lawyer weddings: still ridiculous, but in a different way. Your finalist couples:

Kathleen Cassidy and Ian Shapiro

Nina Yadava and Travis Davis

Emily Feinstein and Eric Olney

Aliya McLendon and Aaron Horne Jr.

Rebecca Krauss and Benjamin Taibleson

This is a summer mega-LEWW, with five finalists and a loooooong list of also-rans at the end. Read on for a virtual nuptial feast….

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Walking the hallways at One First Street.

Last month, the Supreme Court law clerks for October Term 2010 finished their clerkships, turning over their clerkly duties to the October Term 2011 class of clerks. As in past years, many of the OT 2010 clerks are joining private law firms — which welcome them with six-figure signing bonuses. These bonuses are paid on top of base salaries reflecting their seniority (many SCOTUS clerks join firms as second- to fourth-year associates), as well as the usual year-end bonuses.

For the past few years, at least since 2007, law firm signing bonuses for members of The Elect have hovered around $250,000. But this year, at least a few firms are offering even more.

So how much are we talking about?

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Silly things happen when no one speaks up.

The classic example was when General Motors chose to name one of its cars the Chevrolet “Nova.” In Spanish, “no va” means “it does not go,” which isn’t a great name for a car sold in Spanish-speaking countries. I’d bet that a few hundred Spanish-speaking employees of GM noticed that issue before the car hit the market, but no one bothered to speak up.

Let me offer two more examples of failing to speak up, with both examples coming at my own expense. (I wish I weren’t such an easy target, but such is life.)

The first example involves a law firm. Twenty-two years ago, as a lateral sixth-year associate, I accepted a job at Jones Day in Cleveland. I saw during the hiring process, and again when I sat down at my desk on the first day of my new job, that all of the firm’s promotional materials included the firm’s marketing slogan: “Jones Day: One Firm Worldwide.”

I’d been practicing law for six years at that point, so I was a relatively sophisticated lawyer, although by no means an old hand. Perhaps older and wiser folks looked at the tagline “one firm worldwide” and thought: “Terrific! I’m going to hire those guys because they’re one firm worldwide!”

But that wasn’t how it struck me. I sat there scratching my head: How many firms was I supposed to think Jones Day was? Two firms? Three firms? A half-dozen? And why was the apparent misperception — that Jones Day was more than one firm — so widespread that the firm devoted its main branding opportunity to dispelling this confusion? Of the many praiseworthy things that could surely be said about my new employer, why did the fact that it was only “one firm” top the list? Wouldn’t it be slightly more helpful to say, for example, “Jones Day: Pretty Good Lawyers”? Would the Jones Day slogan make sense for any other big firm? Would “General Motors: One Firm Worldwide” be a useful marketing tool? What the heck was going on?

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You just wonder if Jones Day could try recruiting adults instead of making a bunch of rules to regulate the kids they have there. Think about it: one of the defining features of Jones Day is its policy of secrecy regarding attorney compensation. The firm is worried about petty jealousies sprouting up between competing attorneys over compensation. Other firms handle this problem by assuming their people can act like trained professionals, Jones Day thinks that its people can’t handle the truth.

This condescending view doesn’t just apply to salary information. Apparently, Jones Day employees cannot be trusted to dress themselves without explicit instructions.

Jones Day has so many nanny-state policies that I’m surprised Mike Bloomberg isn’t a partner in the firm…

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Let’s all take a deep breath. Associate bonus season, which usually wraps up sometime in January, looks like it’s been extended well into April. This is just more proof that Biglaw firms don’t actually collude. No rational business person would want to be making decisions in April 2011 about how much to pay employees for 2010 performance.

For those trying to keep score, there seem to be the following categories of firms (roughly using a letter-grade system):

A – Firms that are paying Cravath-level spring bonuses in all offices. (Example: Cravath.) [FN1]
B – Firms that are paying Sullivan & Cromwell-level spring bonuses in all offices. (Example: S&C.)
C – Firms that are paying spring bonuses in New York but not elsewhere, like California or D.C.. (Example: Read more below.)
D – Firms that are not paying spring bonuses because their year-end bonuses beat the Cravath year-end bonuses, and they’re hoping their associates can’t add. (Example: CHECK YOU QUINN EMANUEL.)
F – Firms that are not paying spring bonuses and invite disgruntled associates to S some D if they don’t like it. (Example: Jones “We can still hear all the poors who live inside your black box” Day.)

Right now, we want to focus on Group C. Group B gets a pass because they started the spring bonus phenomenon and goddamnit we’re going to respect that. Partners at firms in Groups D & F will have to examine their own motives for why they want their associates to secretly hate them.

But Group C is weird. Why create inter-office jealousy and rage when most top firms are paying spring bonuses in all of their offices? Why look that desperate to save a little bit of money?

And you can’t spell “Weird Cost-Cutting” without White & Case

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Yesterday we reported on talks last week between Jones Day and key partners in the construction group of Howrey. It appears that the talks have borne fruit.

As reported yesterday by the Daily Journal (subscription), a group of seven Howrey partners — led by prominent construction lawyer Steve O’Neal, former chairman of the now-defunct Thelen law firm — left Howrey this week for Jones Day. The move was confirmed yesterday by Robert Mittelstaedt, the partner in charge of Jones Day’s San Francisco office.

Who are the departing construction-law partners? And which other partners might be leaving Howrey’s California offices?

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After all, there are fewer partners for Howrey to lose with each passing day, as the Howrey lawyer diaspora continues to grow. Let’s review the recent activity — and discuss some possible future defections.

On Friday we reported that IP litigator Mark Whitaker would be joining Baker Botts. That news has now been publicly announced.

Back on February 4, we mentioned that government contracts lawyer Barbara Werther was leaving Howrey, most likely for Ober|Kaler. She’s now on the Ober|Kaler website (although the firm apparently didn’t issue a press release touting her arrival, as it did for two first-year associates).

UPDATE: Just this morning, Ober|Kaler issued a press release on Werther and insurance coverage litigator Stephen Palley (who also joined from Howrey).

UPDATE (4/5/11): All in all, five Howrey construction lawyers joined Ober|Kaler.

Other outlets have noted additional partner departures. K.T. “Sunny” Cherian, described by The Recorder as a “top IP litigation rainmaker” with a book of business worth more than $10 million, joined the San Francisco office of Hogan Lovells this past weekend. Four other partners will join him in soaking up the Ho-Love: John Hamann, Sarah Jalali, Constance Ramos, and Scott Wales (who had been the hiring partner for Howrey’s S.F. office).

Also in S.F., Pillsbury Winthrop picked up IP partner Duane Mathiowetz. The news was reported by the Daily Journal (subscription), which noted that Mathiowetz, who worked as a mechanical engineer for a decade before going into law, has taken five patent cases to trial in the past five years (winning four).

Who might be the next to leave Howrey? Here’s some speculation….

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Ed. note: This is the latest installment of Inside Straight, Above the Law’s new column for in-house counsel, written by Mark Herrmann.

Is blogging a useful business development tool?

The folks who sell blogging platforms to lawyers say that blogging is the route to riches. But bloggers themselves are far less certain whether blogging actually generates business. What’s the truth?

Let me start with my personal experience; I’ll conclude with a thesis. The personal experience is just the facts — what I did as a blogger, how successful the blog was, and how, if at all, I profited from the experience. (I’ve previously recited parts of this story in both the print media and elsewhere. I’ll try to add a few new thoughts here.)

What did I do as a blogger? For three years — from October 2006 through December 2009 — while I was a partner at Jones Day, I co-hosted the Drug and Device Law Blog with Jim Beck, of Dechert. We wrote almost exclusively about the defense of pharmaceutical and medical device product liability cases. We affirmatively chose to have the blog co-hosted by partners at two different firms, for two reasons….

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Ed. note: This is the latest installment of Inside Straight, Above the Law’s new column for in-house counsel, written by Mark Herrmann.

Business development: What works?

I was on the other side — the law firm side — of the business development coin for 25 years. And those 25 years taught me this about generating business: Raise your profile; stay in touch with people; and get lucky.

I was never once retained by dint of good looks or charm. (Anyone who’s seen or met me won’t find this to be surprising.)

And I don’t play golf.

So what’s a lawyer to do? What business development efforts worked for me, and what might work for you?

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Some time ago, we solicited applications for a new position here at Above the Law: a columnist to cover the world of in-house counsel. We received many outstanding applications, and we thank everyone who applied for their interest.

Today we are pleased to announce the launch of the new column, entitled Inside Straight (for the poker aficionados among you). As its name suggests, the column will cover the world of corporate counsel with all of the candor and insight that you’ve come to expect from ATL.

Our columnist — a former law firm partner, current in-house lawyer, and author of a well-received book on legal practice — should be familiar to longtime followers of the world of legal blogging….

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Earlier this week, we brought you the story of Nelson v. Jones Day — a discrimination lawsuit filed against Jones Day by Jaki Nelson, an African-American woman who worked at JD for almost 18 years. Some of the allegations in Nelson’s complaint — use of racial slurs by firm partners and administrators, sex scandals, and rampant bullying — were salacious and incendiary. If you haven’t already done so, read more about them in our earlier post.

As litigators well know, however, there are two (or more) sides to every story. And this lawsuit is no exception.

(We’re reminded of Aaron Charney’s lawsuit against Sullivan & Cromwell, alleging anti-gay discrimination. Based on the same reporting, some viewed that lawsuit as Philadelphia: The Sequel, while others saw it as an oversensitive and entitled associate suing a firm with no anti-gay bias — and numerous gay partners and associates.)

After we published our post, sources came forward to defend Jones Day and the lawyers mentioned in the complaint — and to dish dirt on the plaintiff, Jaki Nelson….

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Oh boy. Discrimination lawsuits filed by former employees against law firms can get pretty salacious. But we haven’t seen a complaint this juicy since Allgood v. Williams Mullen (aka the “cucumber incident”), or maybe Braude v. Maron Marvel (girl-on-girl sexual harassment in Delaware).

This latest lawsuit is captioned Nelson v. Jones Day. It was actually filed back in September, but it only seems to be coming to light now. It was covered last week by eBossWatch, then picked up today by the ABA Journal.

The allegations — which include claims of Jones Day partners and staff supervisors using racial slurs, junior associates “treat[ing] office staff like servants,” and office affairs and sex scandals — are not to be missed….

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Until Cravath proves me wrong, I’m going to keep on believing that associate bonuses will be better this year than last. But this early indication from the notoriously secretive firm of Jones Day doesn’t bode well for my prediction.

Today Jones Day communicated to its administrative staff that it wouldn’t be paying them a bonus this year.

Actually, it’s worse than that for staff at Jones Day. Not only will they not be getting bonuses this year, but the firm’s entire “Year End Payment Program” has been terminated. Jones Day says that now it will only pay its staff based on “performance.”

Let’s take a look at the memo to staff, and shudder to think about what this might mean for Jones Day associates…

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Greetings, loved ones. Hello there, California girls (and boys). We hope that you’re doing well. Gay marriage might be on hold for now, but there are other unions to celebrate on the West Coast.

Like unions between law firms and job-seeking law students. As we’ve discussed in these pages before, on-campus interviewing at law schools seems to be on the upswing.

And it’s not just in New York, where schools like Columbia and NYU report increased interviewing activity. It’s happening in California too, as reported by Sara Randazzo and Kari Hamanaka of the Daily Journal:

Career counselors around the state are reporting that the number of employers signing on to the recruiting process this year is either steady or up slightly. The mood, however, is still tempered by the reality that the recruiting climate is nowhere near the fever pitch preceding the downturn when there were barely enough top law students to go around for associate-hungry firms.

“When I talk to lawyers in the field, it seems things are busier, but given all the excess in the hiring pipelines they are still very conservative,” said Terrence Galligan, assistant dean of career development at UC Berkeley School of Law.

Well, conservative can be good (and not just politically). The conservative hiring of summer associates for 2010, for example, seems to have resulted in very high offer rates.

For 2011, some firms that stayed on the sidelines in 2010 are back in the game….

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When we filed our last column, we were full of anticipation over Chelsea Clinton’s then-upcoming wedding. And the New York Times did not let us down with its wall-to-wall coverage of the big day. In case you missed it, you can read the NYT on Chelsea’s dress, Chelsea’s wedding planner, the secrecy, the confidentiality agreements, the feeding frenzy, the frustration of the fashion media, the interfaith angle, the rabbi’s spiritual journey, and the reaction in the town of Rhinebeck. Oh, and there’s a slideshow.

And now, on to this week’s couples (we’re including one standout from mid-July that we’d missed):

1. Emma Mittelstaedt and James Burnham

2. Dace Caldwell and Roman Martinez

3. Anne Stephens and Preston Lloyd

Read all about these couples and their exploits, after the jump.

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