Biglaw partners from international firms don’t like to lose cases — especially not to solo practitioners. Biglaw partners think they own the world, and to lose a case to a lowly solo practitioner would likely bring shame to their firm and force them to commit ritualistic seppuku-style suicide in an attempt to regain their lost honor. (No offense, solos, but we imagine Biglaw partners’ horses are quite high.)
Watch out, solos, because you’ll get absolutely no love from Ho-Love if something like this were to happen. You might get stepped on — literally — and even get slapped in the face with a briefcase…
The first rule of state court is: you do not talk about state court.
* Foreclosure attorney Bruce Richardson alleges that Hogan Lovells partner David Dunn hit him with a briefcase in front of a court officer. That’s how they roll in state court. (Expect more on this later.) [New York Daily News; New York Post]
* From cop killer to nomination killer: Mumia’s the word that stopped Debo Adegbile’s nomination to lead the Justice Department’s Civil Rights Division. [Washington Post]
* In happier nomination news, congratulations to former Breyer clerk Vince Chhabria, as well as to Beth Freeman and James Donato, on getting confirmed to the federal bench for the Northern District of California. [San Francisco Chronicle]
This is the latest in a new series of ATL infographics — visual representations of our own proprietary data, relevant third-party data, “anecdata,” or just plain jokes. This infographic is brought to you by our friends at Prestige Legal Search. Earn another $5,000 to $50,000 with their Rewards Program.
For the most part, Biglaw associate bonuses remain stuck at last year’s levels, reflecting expectations that firm profits will be flat at best. This might seem fair, with everyone feeling the pinch of the “New Normal” and so on. But when we take a small step back and see how these bonus numbers compare as a percentage of partner profits to the bonuses of just a few years ago, these bonuses are arguably pretty measly.
The current $10,000 “market” (i.e., Cravath-following) rate for first-years is just 0.29% of Cravath’s profits per partner (according to the American Lawyer). Back in 2007, first-year bonuses equaled 1.36% of PPP. In other words, the Cravath partnership was nearly five times more generous to its associates back then.
Obviously, Cravath is among the most profitable firms in the world. What are the implications of matching Cravath’s bonus scale for those firms with much lower profit margins? Today’s infographic takes a look at how big a hit to PPP partners willingly take in order to Keep Up With The Cravathians….
Earlier this year, partner bonuses at Hogan Lovells generated some controversy across the pond. Certain partners in London questioned the process by which payments were determined and wondered whether partners in management received too much relative to rank-and-file partners. Squabbles over partner pay are something the firm’s incoming CEO, D.C.-based Stephen Immelt, can look forward to addressing when he takes over next summer.
Let’s now turn from partner pay in London to associate pay in New York. The NYC office of Ho-Love recently showed its associates some love, in the form of year-end bonuses. Were they as controversial as the London partner payouts?
* “This should be a red flag for everyone in legal education and the law firm world.” According to NALP, the percentage of women associates has dropped for the fourth consecutive year. That’s just lovely. [National Law Journal]
* Next summer, the co-CEOs of Hogan Lovells from legacy firms Hogan & Hartson and Lovells will make way for a single CEO structure. If approved by vote, Stephen Immelt will be in charge. Congratulations! [Am Law Daily]
* And the peasants rejoiced, for one of the FLSA overtime suits filed by a document review attorney has survived a motion to dismiss. Quinn Emanuel must have been genuinely shocked by this judge’s ruling. [Am Law Daily]
* “One thing we understand is law and economics.” Yet another law school finally, finally gets it. George Mason University School of Law has agreed to freeze its tuition — for the time being. We may have more on this development later today. [InTheCapital]
* George Huguely V, the UVA LAX bro convicted of killing his ex-girlfriend, has got one hell of a lawyer. Paul Clement is arguing his client’s right to counsel was violated at trial. [Richmond Times-Dispatch]
MoFo’s new German team is known for its expertise in Technology, Media & Telecommunications (TMT) transactional work. The Berlin office in the firm’s third outpost in Europe and its 17th office worldwide.
How is Hogan Lovells taking news of the departures? As the ABA Journal wondered in a headline, “Morrison & Foerster opens Berlin office; is Hogan Lovells miffed?”
* Jamie McCourt, a former family law attorney, strikes out in trying to set aside her divorce settlement with Frank McCourt, former owner of the Los Angeles Dodgers. She’s stuck with $131 million and several luxury homes. #richpeopleproblems [National Law Journal (sub. req.)]
* An inquest reveals that a Hogan Lovells partner who took his own life had warned a colleague that he was going to kill himself the day before his death. [Daily Mail via ABA Journal]
* If you’re in New York this weekend, go see Arguendo. Or buy tickets for the 7 p.m. performance on September 22, when I’ll be doing a talkback with artistic director John Collins after the show. Enter the discount code “ABOVE” for $35 tickets (a special rate for ATL readers). [Public Theater]
As was vividly demonstrated by our recent infographic, Biglaw’s summer associate classes have undergone a major and seemingly permanent contraction. For the most part, large — arguably bloated — summer associate classes are a thing of the past. Among the Am Law 50, only eight firms are bucking this downward trend, with actual increases in the size of their summer classes since 2007. These firms are a collection of Wall Street’s oldest and most elite white shoe mainstays: Sullivan & Cromwell, Cravath, Davis Polk, and their ilk. On average, these firms were founded 112 years ago (i.e., during the McKinley Administration). The outlier here is the relative upstart litigation powerhouse Quinn Emanuel, founded only back in 1987.
Besides the durability and strength that comes with such a refined pedigree, what other trends are apparent in this great downsizing of Biglaw’s summer associate classes?
Washington, D.C. has the most densely concentrated population of lawyers in the nation. The capital has an astounding 1,356 percent more lawyers per capita than New York. One in 12 District residents is an attorney. The nation’s capital is home to just one-fifth of one percent of the national population but accounts for one in every 25 of its lawyers. Could there be some correlation between this total saturation of D.C. with J.D.s and the seeming contempt that the rest of the country holds for the place? Washington’s negative perception problem is such that Slate’s political gabfest felt compelled to devote this week’s podcast to explore the proposition “Washington Is Really Not That Bad.” Examples of this not-badness included the fact that people don’t have to bribe officials to get their social security benefits. So it was kind of a low bar.
In any event, D.C.’s lawyers work in myriad capacities in Congress, government regulatory agencies, non-profits, and lobbying firms. But obviously Washington is very much a Biglaw town as well. The frustration and malaise brought on by the sequester and partisan gridlock seem to be affecting the business of Biglaw. As Lat noted yesterday, large firms there are struggling: revenue, demand and productivity are all lagging at D.C.-based law firms when compared to firms nationwide. So this might not be the ideal time to check in on how lawyers at large D.C.-based firms perceive their professional experiences. But we’ll do it anyway.
Our ATL Insider Survey (13,500+ responses and counting) asks attorneys at firms to evaluate their employers in terms of compensation, hours, training, morale, and culture. After the jump, we’ll look at how firms in Washington stack up in these categories — and how they compare to the national averages…
Ed. note: This is the latest installment in a new series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Today’s post is written by Michael Allen, the Managing Principal of Lateral Link, who focuses exclusively on partner placements with Am Law 200 clients.
From Q3 2012 through Q2 2013, we have seen approximately 7,500 lateral moves at the top 200 law firms. Approximately 4,500 (60%) were associates; 1,900 (25%) were partners; and perhaps most surprisingly, 1,100 (15%) of the lateral movement consisted of “counsel” or “of counsel” positions.
To clarify, some firms promote their senior associates to a “counsel” position based on seniority, but even excluding this pool of associates, that still leaves a significant number of counsel-level laterals finding opportunities within new law firms. From April 2012 to the end of the second quarter this year, Gordon & Rees had the largest number of lateral counsel transitions, with 34 (in large part due to the fact they opened seven offices in 2012 alone). Seyfarth Shaw, Greenberg Traurig, and Wilson, Elser, Moskowitz, Edelman & Dicker followed closely with 26, 23, and 22 counsel placements, respectively. Notably, Quinn Emanuel Urquhart & Sullivan had 11 counsel transitions in that same timeframe, 8 of them from a group of more than 15 Skadden Arps product liability attorneys who followed colleagues Sheila Birnbaum and Mark Cheffo, two heavyweights in the product liability world….
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