Ed. note: Above the Law has teamed up with Law Shucks, which has done excellent work translating all of the layoff news into user-friendly charts and graphs: the Layoff Tracker.

This week, economists missed on the good side — initial jobless claims fell by more than expected. The 502,000 applicants are the fewest since January 3, and the four-month rolling average is at the lowest level since November 2008.

It’s tough to grasp half a million people filing for first-time benefits as good news, but these are troubled times, so we have to cheer where we can. Don’t get too excited, though. Even news that looks good at first glance probably isn’t. The 139,000 people who came off the continuing-claims roster more likely did so as a result of benefits running out or giving up the search than actually finding work.

But don’t be surprised if that number starts creeping back up. A bill was passed last week that will extend benefits by 14 weeks in all states, and six additional weeks in states where the unemployment rate is greater than 8.5%.

All in all, it was a relatively good week in BigLaw, with no layoffs reported. Nonetheless, firms continue to flail about trying to fix their economic models, and we document the efforts after the jump.

Although we focus on Biglaw in these pages, our recent open threads on small (or at least smaller) law firms, centered around different areas of practice, have been very well-received. So we’ll continue the series. To look at the past threads, click here and scroll down; to suggest a topic to us, please email us (subject line: “Small Law suggestion”).

Today we turn our attention to APPELLATE LAW. This field is near and dear to our heart, since we clerked for a federal appellate judge and focused on appeals during our time in the U.S. Attorney’s Office. If you enjoy research, writing and arguing more than document review and discovery hell, and if you are as lazy as we are more of a “law” person than a “facts” person, then appellate work may be for you.

Unfortunately, there aren’t that many appellate boutiques out there. It’s not easy to build a practice around 100 percent appeals work. Many top appellate practitioners can be found in the Washington offices of large firms, where they can be roped into law-heavy work in the trial courts (e.g., summary judgment motions). Biglaw shops with leading appellate and Supreme Court practices include Gibson Dunn, Mayer Brown, Jones Day, Sidley Austin, and WilmerHale. Check out the Chambers and Partners list of top appellate shops for additional examples.

UPDATE: One appellate practitioner pointed out to us that you can do appellate work for a large firm outside D.C. as well (especially in this age of telecommuting). For example, Jones Day and Mayer Brown have sizable presences in New York (and other cities).

There are opportunities to do appellate work outside the big firm environment too. Read more, after the jump.

For those who have been following the Supreme Court case American Needle v. NFL (previously blogged about in more detail here, here, and here), this Friday clothing manufacturer American Needle Inc. will file its opening brief, arguing that the Seventh Circuit Court of Appeals was wrong to define the NFL as a single-entity under Section 1 of the Sherman Act.

As many of you know, I have long agreed with American Needle’s view that the NFL should be treated as a collection of 32 separate clubs, and not as a single entity. To me, this issue was best resolved by the Second Circuit back in the 1982 case North American Soccer League v. Nat’l Football League, in which that court held “the sound and more just procedure is to judge the legality of [sports league] restraints according to well-recognized standards of our antitrust laws rather than permit their exemption.”

Currently, the Second Circuit’s view remains in the overwhelming majority, as seven previous courts have upheld this view and rejected the NFL clubs’ single-entity argument. The Seventh Circuit meanwhile remains alone in its iconoclastic position that single-entity status should be determined one league at a time, one function at a time.

American Needle’s counsel on this matter in the law firm Jones Day. The National Football League meanwhile is represented by Covington & Burling LLC—a firm where former NFL commissioner Paul Tagliabue serves as Senior Of Counsel.
_______________________________________________________________________________
Marc Edelman is a Professor at Barry Law School in Orlando, FL. He previously was a Visiting Professor at Rutgers School of Law-Camden. His bio is available here, and his publications, here.

Here at Above the Law, we do a lot of work to pierce through the veil of silence regarding compensation at Jones Day. The firm notoriously tries to keep associate salary, partner draws, and bonus information secret. But we’ve been able to report on the Jones Day salary structure and its associate bonuses. We were even able to tell you when Jones Day froze salaries for its staff.

We believe that information wants to be free. But apparently management at Jones Day thinks people are happier when they are kept in the dark. Today, the Recorder reports (subscription) that Jones Days believes its lack of salary transparency makes for a better work environment and has helped the firm make it through the recession. The ABA Journal has this excerpt from the Recorder’s report:

Observers say the law firm’s closed compensation system is helping its efforts to hire quality laterals because partners don’t know what the new hires are paid and can’t complain.

The article notes that the business card for Joe Sims, the lawyer heading up the West Coast expansion, doesn’t indicate his title or business area. His explanation: “We don’t do titles here.”

The story concludes that there are a lot of things Jones Day doesn’t do. “It doesn’t tell its partners what other partners make, it doesn’t issue profit figures, it doesn’t pay bonuses, it doesn’t let partners vote on who will head the firm, it hasn’t conducted mass layoffs, and it doesn’t pay associates in lockstep.”

Partner Joe Sims has talked the talk before on Above the Law. And his firm continues to walk the walk. More details after the jump.

Let’s finish off the prestigious Vault 20. Here we have some firms on the rise, and some firms that are … not.

Here is the next batch of firms:

16. WilmerHale
17. Latham & Watkins
18. Arnold & Porter
19. Jones Day
20. White & Case

Okay, before we discuss Latham and White & Case, let’s give a good cheer for WilmerHale (up one spot from last year), Arnold & Porter (up two spots from last year), and Jones Day (up four spots from last year).

The Jones Day surge is particularly impressive. You’ll remember that the firm slammed its competitors earlier this month. But it seems like the firm is walking the walk as well as talking the talk.

After the jump, you know what happens next.

Jones Day has escaped a lot of the worst side effects of the recession. The firm hasn’t had massive layoffs, it hasn’t cut associate salaries, it hasn’t canceled its summer program. That is something to be proud of.

And Jones Day seems very proud. Above the Law has obtained an internal newsletter from Jones Day that was aimed at its California office. The message was written by partner Joe Sims and it’s slated as a “midterm report” about the firm. Much of the letter is the kind of standard stuff you are used to seeing from slick, firm sponsored content:

The reality is that we are feeling the same reduced demand that is facing all law firms; I think it is clear — and as the results from other firms become visible, it is going to be even more obvious — that we are dealing with those circumstances better than most. So we have our challenges but, ironically, this difficult economic climate is also producing the best opportunity we have ever had in California to really separate ourselves from most of our peer competitors, and to move toward the position we aspire to — being universally recognized as one of the leading firms in California.

But what makes this newsletter extraordinary is that the message gets very specific about just why Jones Day is poised to separate itself from its peer competitors. And the newsletter offers Sims’s analysis of precisely where the firm’s California competitors went wrong.

More details after the jump.

* Like Drinker Biddle, Frost Brown Todd is instituting an apprenticeship program for its first year associates. They make less money and are billed out to clients at lower rates during their 1,000 hour apprenticeship. [Business Courier of Cincinnati]

* Stereotypes and jury selection. [Baltimore Sun]

* Jones Day’s Corinne Ball showed she’s the master of the quickie during the Chrysler restructuring. [New York Times]

* What can David Carradine’s family do about his death photos going viral? [American Lawyer]

* Behind the scenes in the push to get Sonia Sotomayor to SCOTUS: The White House keeps her supporters on a tight leash. [Washington Post]

* The San Francisco Chronicle recounts SCOTUS Justice Anthony Kennedy’s commencement speech at Stanford on Sunday, but strangely accompanies the article with a photo of Clarence Thomas. Do all the non-liberal justices look the same to you, San Francisco? [San Francisco Chronicle]

* Musical Chairs: Kirkland & Ellis loses the majority of its West Coast bankruptcy and restructuring team to Jones Day. Six L.A. lawyers and one N.Y. associate are making the Jones Day jump. [American Lawyer]

* A personal injury firm in Connecticut has sued Google for selling its name to a competing firm. Stratton Faxon is also trying to get an injunction to prevent Google from selling law firm names as adwords at all. Note that this firm specializes in personal injuries and not IP law. [Connecticut Law Tribune]

* SCOTUS lifts restrictions on questioning suspects without their lawyers present. [Seattle Times]

* A transcript of a conversation between Roland Burris and the brother of Rod Blagojevich proves that Burris likes Titanic quotes. The Senate Ethics Committee and a state attorney get to decide if it also proves Burris made improper offers in exchange for Obama’s vacated seat in the Senate. [Courthouse News Service]

* A 53-year-old martial arts instructor in Texas is quite the middle-aged ladies’ man. He has his hair, a flat stomach, a Corvette, and a French accent. Unfortunately, he also has AIDS and has been convicted of six counts of sexual assault for knowingly infecting his partners. [Dallas Morning News via ABA Journal]

* Back in her Yale days, SCOTUS nominee Sonia Sotomayor had a nasty OCI with the firm formerly known as Shaw Pittman, now Pillsbury. [Los Angeles Times]

As many of you know, Jones Day guards its salary information as if the firm is protecting the Holy Grail. Compensation is kept confidential and talking about what you make, even to colleagues, is generally discouraged.

But no firm is immune from the global economic crisis. Today, a piece of information leaked out of Jones Day regarding a freeze on staff salaries:

In responding to these kind of challenges, the Firm has always been concerned about the long-term and about what is in the best interests of our clients, our lawyers, our employees, and the Firm as a whole. Thus, we consistently try to make decisions that are aimed at protecting those long-term interests. That process requires that we adjust to meet new challenges, and it means that we must be prudent in managing our costs and expenses to ensure that we maintain our solid financial foundation.

Consequently, as the year has unfolded, we have examined all of our spending and are making adjustments in a number of areas. As a part of that examination, and after careful consideration, we have made the difficult decision that salaries for all legal support personnel and staff in all Offices and Departments of the Firm will remain at their current levels through June 30, 2010, and that no Year End Payments or discretionary bonuses will be paid in 2009. We know that these decisions may be disappointing for you and your families. We also are confident that you share our commitment to the long-term success of the Firm and understand that these decisions are one part of ensuring that success.

As we’ve seen around the legal industry, employees — be they staff or associates — are generally willing to suffer a pay freeze if it means they can hang onto their jobs.

But will the pay freeze help Jones Day staff keep their jobs? Notes about the Jones Day performance review after the jump.

* Jones Day’s Corinne Ball is having a busy week. She’s the lead bankruptcy attorney for Chrysler. “It requires a certain charisma,” said Robert Profusek, head of Jones Day mergers and acquisitions practice. “When everyone is jockeying to have their point of view expressed, who do people stop and listen to? She’s a very charismatic personality.” But one can’t really help but stop and stare listen to someone wearing that. [Reuters]

* … Meanwhile, Wall Street Journal is predicting the Chrysler Chapter 11 filing will go down today. [Wall Street Journal (subscription)]

* Atlanta lawyer Andrew Speaker decided to file a lawsuit this week against the CDC for ruining his life when he had tuberculosis in 2007. That totally sucks for him, but the CDC is dealing with SWINE FLU this week. PIG FLU. How can you think about your silly TB, the destruction of your reputation, the ruin of your marriage, and implosion of your career at a time like this? [CNN]

* Why did Manhattan lawyer William Parente kill himself and his family last week? FBI agents have raided his office to find out. [New York Daily News]

* The problem with the law firm business model is leverage, says Wharton. [Forbes]

* Federal Judge Jay S. Bybee will has been invited to testify before Congress about his torture advice while at the DOJ. A scary prospect given that people like Obam-ite John Podesta want to see Bybee impeached. [Washington Post]

* SCOTUS and the fate of Section 5. [Slate]

Dear Jones Day threadjackers:

Here is your post about the Jones Day bonus. Now please put the lotion in the basket and give me back my dog.

Okay. Yesterday, Jones Day sent around its individual compensation letters. Traditionally, Jones Day makes bonus decisions on a case-by-case basis. This year is no different, but a tipster reports that the firm has generally decided to follow the Cravath scale.

Jones Day doesn’t have a billable hours requirement. But because of the individual nature of the firm’s decisions, some associates could be receiving more than people at Cravath, while some could get far less.

We also understand that Jones Day does everything it can to keep associates from knowing what the guy down the hall is taking home. A tipster reports:

All comp is confidential here. So no one knows what anyone else gets, unless you spill the beans, which is strongly discouraged. You just get your personal comp letter with your numbers.

Firm spokespeople could not be reached for comment about their bonus structure.

Our tipsters weigh in after the jump.

The future of the Detroit’s Big Three is looking grim, as Congress has turned tight-fisted in response to the automakers’ request for $34 billion to stay alive. Chrysler is getting ready to throw in the towel, and has chosen Jones Day to do the throwing.

From the Wall Street Journal (subscription):

Chrysler LLC has hired the prominent law firm Jones Day as bankruptcy counsel, according to several people familiar with the matter. The firm was hired several weeks ago to help the ailing auto maker prepare for a possible Chapter 11 bankruptcy filing.

Jones Day bankruptcy maven Corinne Ball, a partner in the New York office, will lead the effort should Chrysler fail to secure a $7 billion capital infusion by the end of the year.

Jones Day co-head of restructuring Corinne Ball is handling the case, said the people familiar with the matter. She has worked on other automotive bankruptcies, such as that of auto-parts supplier Dana Corp., and many cases involving the United Auto Workers union. She represented GM in its acquisition of Korean auto maker Daewoo.

AmLaw noted the possibility for this major coup for the Jones Day team. This will be a massive deal. Sad for Detroit and the general economy. But what’s not these days?

Chrysler Hires Law Firm Jones Day as Bankruptcy Counsel [WSJ]
To Handle Potential Bankruptcy, Chrysler Taps Jones Day [WSJ Law Blog]
No Way! Jones Day Retained as Bankruptcy Counsel for Chrysler, Say Reports [AmLaw Daily]
Chrysler Hires Jones Day As Bankruptcy Counsel [Dealbreaker]

In connection with on-campus interviewing season, we’re giving you a chance to assess the firms that made this year’s Vault 100 list of most prestigious law firms. The previous open threads listed firms in groups of five, but to up the pace, we’ll list them by ten from here on out. Here’s the next group, with prestige scores in parentheses:

21. O’Melveny & Myers LLP (6.815)
22. Clifford Chance LLP (6.772)
23. Jones Day (6.763)
24. Morrison & Foerster LLP (6.657)
25. Hogan & Hartson LLP (6.579)
26. Linklaters (6.574)
27. Milbank, Tweed, Hadley & McCloy (6.512)
28. Ropes & Gray LLP (6.501)
29. Mayer, Brown, Rowe & Maw LLP (6.494)
30. Paul, Hastings, Janofsky & Walker (6.481)

We note Magic Circle firm Linklaters making a big leap from the high 30s in the 2008 list to #26 this year — perhaps because its “notable perks” include group retreats to Europe, a drinks trolley, and an on-site doctor and dentist.

Compare. Contrast. Discuss. Thanks.

Earlier: Vault 100 Open Threads - 2009

Many lawyers are charitable creatures. Because lawyers are good people. For those working in Biglaw, all that disposable income — and the corresponding need for tax deductions — can make giving to good causes a little easier.

We receive many requests from benefit organizers for promotion on Above The Law. We consider ourselves good charitable creatures here at ATL, but we have a responsibility to our readers to stick to important news items, like raunchy internet chats, embarrassing summer associate stories, top ten music lists, and irreverent commentary on plus-size judges.

But we’ve created a part of the site, the ATL Community, where the bleeding hearts among you can post information about charitable events. There are a few events there now, including Just Art 08!, to be held in NYC on June 25. If you have a charitable event you’d like to promote, please feel free to plug it in the Community section.

If you have any charity left in you after making donations to your favorite law school, check out the ATL Community site for legally-related giving opportunities. Okay, that’s all the goodness we have in us for today. Time to get back to the news.

P.S. Speaking of charitable benefits, congratulations to Hope for Vision, previously mentioned here and here, on its recent successful event. Props to Jones Day, which presented the organization with a $100,000 check to kick off its 20/20 Vision Campaign.

Washingtonian magazine has a fun little piece on lawyers profiting from congressmen going after one another.

If you’re interested in the intersection of law and politics, and we know many of you are, you’ll enjoy this story. Here’s how it starts:

Of all the angles played by Washington law firms, few can bring as much joy as having clients who aren’t playing with their own money.

Take the battle between two congressmen, John Boehner of Ohio and Jim McDermott of Washington: In a near-decadelong fight over McDermott’s leak of the contents of privileged and illegally taped conversations involving Boehner, the two ran up legal bills of about $1.6 million.

So who ended up covering that seven-figure legal bill? Find out, after the jump.

Last week we put up a post about associate compensation issues at Jones Day. It generated a torrent of comments. As always, some were negative, some positive.

A few readers were upset by the negative comments and came to their firm’s defense. Here’s what one wrote:

I am a third year lawyer at Jones Day. I enjoy my job and am paid well (and I mean darn well) above market. I hesitate to respond to such mudslinging by persons who are either disgruntled or misinformed, but as a current happy third year lawyer at Jones Day, I felt the need to set the record straight.

People who are unhappy with their compensation at Jones Day are in fact underperformers. Believe me, if I were in charge, I would fire those people rather than giving them a $160,000 “hint” that they aren’t Jones Day material and should consider a career change. Because anyone who thinks that paying a third year lawyer the published salary of a first year lawyer is not a “message” about work quality is delusional. In no other profession do competent, mature people complain about being compensated based on their performance (or lack thereof).

To reiterate: I did not clerk. I have never billed more than 2100 hours. I have received bonuses despite billing slightly under 2000 hours. I have had many fantastic substantive opportunities (read: not two years of document review). I enjoy my job and colleagues. I am paid based on the quality (again, not quantity) of my work, which turns out to be more than most 4th year lawyers billing 2000-2100 hours at big firms in NY.

And the beauty of our confidential system is that other greedy jealous underperforming associates aren’t blogging about my pay stub. Instead, those “lawyers” have gotten the Jones Day “hint,” and are now spending their time at a new employer - not representing clients, but blogging about their ex-employer who figured out that they were worthless.

Ouch. That was way harsh, Tai.

But it’s a fair point. Why shouldn’t a firm pay associates what it thinks they’re worth on an individual basis, and if the associates don’t like it, they can leave? This is effectively what investment banks do with their personnel.

Additional commentary about JD, plus a photo of some of their paralegals at play, after the jump.

A number of you have requested, in comments and via email, a post to talk about compensation issues at Jones Day. So here you go.

We’ll kick off the discussion with this message we received:

I have recently noticed a number of postings relating to Jones Day D.C.’s lack of a bonus and non-competitive / non-transparent salary scale. For what it’s worth, a friend of mine left Jones Day as a third year associate. Compensation as a third year: $175k. My friend knew of others that were in the third year class making $175k; however, my friend knew of a few other associates making $170k, and even one third year associate that was making $160k. This was AFTER Jones Day D.C. made the move to $160k.

Talk about compression, $5k between a first year and third year. Maybe some of these Jones Day posters do have something to gripe about?

We don’t really know, due to Jones Day’s overall lack of transparency when it comes to associate compensation (beyond the first year). But let’s try and find out what the deal is. If you have associate compensation information about Jones Day, including but not limited to the Washington D.C. office, please share what you know in the comments, or email us. Thanks.

We broke the news of the Kilpatrick Stockton pay raise earlier this month. Today’s Fulton County Daily Report has an article about it here.

The Kilpatrick move is old news — it was actually announced before Labor Day — but Meredith Hobbs’s piece does contain a helpful summary of where the big Atlanta firms stand:

Alston & Bird sparked this round of Atlanta pay raises on Aug. 1 when it increased associate pay across the board, starting at $145,000 for first-years and rising to $190,000 for seventh years—the same scale that Hunton & Williams instituted in February during the year’s first round of associate salary increases. At that time, most of the city’s big firms increased first-year pay from $115,000 to $130,000. That followed a similar $15,000 pay increase at the beginning of 2006, also sparked by Alston.

Other firms that have announced they will raise local first-year pay to $145,000 in January include Troutman Sanders, Sutherland Asbill & Brennan and Paul, Hastings, Janofsky & Walker. Jones Day will raise first-year pay to $150,000 at that time.

Kilpatrick first-years join the $145K club [Fulton County Daily Report]

Earlier: Nationwide Pay Raise Watch: Kilpatrick Stockton

The devoted readership of ATL down in ATL will appreciate this update. From an article by Meredith Hobbs in yesterday’s Fulton County Daily Report:

More law firms have capitulated in Atlanta’s second round of pay raises this year.

Jones Day will raise starting pay to $150,000, and Sutherland Asbill & Brennan and Paul, Hastings, Janofsky & Walker will go to $145,000 — an increase of $15,000 at each firm.

The raises are effective Jan. 1, 2008, when pay raises go into effect at several other Atlanta firms, including Alston & Bird, King & Spalding and Troutman Sanders.

The rest of the article, which contains discussion of salaries for more senior associates (compression!!! aargh!!!), is available here.

Three Law Firms Pump Up Pay for First-Years [Fulton County Daily Report]

Multiple readers sent us this article, from Bloomberg News:

Bruce Masterson, chief operating officer of Socrates Media LLC, asked his outside counsel to customize a residential lease for all 50 U.S. states in 2003. The firm’s estimate: about $400,000. He rejected that price tag and hired QuisLex, in Hyderabad, India, which did it for $45,000.

“It was good quality,” said Masterson, whose Chicago-based company publishes legal forms on the Internet. “We’ve been working together ever since.”

Clients are pushing law firms like Jones Day and Kirkland & Ellis to send basic legal tasks to India, where lawyers tag documents and investigate takeover targets for as little as $20 an hour. The firms are reacting to a trend that will move about 50,000 U.S. legal jobs overseas by 2015, according to Boston- based Forrester Research Inc.

Biglaw partners may soon be telling associates: “If you don’t think $160,000 is enough to review documents for 2200 hours a year, fine. We’ll just ship your job off to India, where ‘Biff’ and ‘Jenny’ will be happy to be document drones — for under $9,000 a year. And if I have a problem with my laptop, they can help me with that too!”

Jones Day, Kirkland Send Work to India to Cut Costs [Bloomberg News]