Well, some associates at Kaye Scholer claim they’ve seen underneath all the make-up — and it’s not pretty. This contestant would not go far in RuPaul’s Drag Race.
In terms of responses to our recent discussion of which firms aren’t paying spring bonuses, however, Kaye Scholer emerges a winner. We’ve heard from KS associates in droves over the past day or two — and the depth of their fury is impressive.
What are they so upset about? It’s not just the lack of spring bonuses. Let’s find out….
It’s hard to put a number on just how many people are in the so-called “lost generation” of attorneys who had their careers ruined during the recession. We’ll probably never know how many people did not get jobs or had to take very bad jobs because of the weak economy in 2008, 2009, and 2010.
But one way of assessing the damage is to look at the number of positions that have been shed by Biglaw firms. That’s the perspective the National Law Journal 250 took this year. Based on their numbers, Biglaw has lost almost 10,000 lawyers since 2008.
So if you got laid off during the recession, you are certainly not alone…
Although Howrey LLP officially dissolved as a partnership as of March 15, some operations continued beyond that date. But at the close of business today, the firm is going into a more complete shutdown, due to a withdrawal of bank financing.
“Last night, we received notice via email that Howrey is closing as of today, because CitiBank refuses to pay the payroll,” one source reported. “CitiBank has also refused to pay our PTO [paid time off], and our pension contributions.”
“Citibank has closed the door on Howrey operations today, more than a month before the May 9th date listed on WARN notices,” a second tipster confirmed. “No PTO, pensions will be paid out.”
UPDATE (6 PM): Citi takes issue with Howrey’s take on events. From a Citi spokesperson: “We are deeply disappointed in Howrey’s mischaracterization of the situation. Citi is not responsible for the employment practices of a client and has acted in a professional manner throughout this process.”
Law firm layoffs might be down, but they’re not out. Today we bring news of staff layoffs in the Los Angeles office of Hughes Hubbard & Reed.
We heard reports that approximately 12 out of 18 support staff members have been or will be laid off. According to these reports, eleven were laid off earlier this month, and one will be leaving in a few weeks.
In response to an inquiry from Above the Law, a spokesperson for the firm confirmed the essential accuracy of these reports. No associates were affected by the reduction, she noted.
“This was a difficult move; we had to let go of some very good people,” said Gerard F. Cruse, the firm’s Chief Operating Officer, in a statement issued to ATL. “But, despite the fact we had another record year last year, the recession has impacted our L.A. office and we couldn’t continue to be overstaffed there. We are confident about its future and are planning the L.A. office’s expansion.”
This evening, many of us — and six Supreme Court justices, according to an announcement this morning from the Court — will listen to the State of the Union address. Don’t be shocked if President Obama tells us that the state of the union is “strong.” When was the last time a president appeared before us to announce that the union is in shambles? (Even Jimmy Carter never did that.)
The truth lies somewhere in between strength and shambles. And that’s true not just of the United States, but of the world of large law firms.
Let’s talk about two indicators: layoffs, and bonuses — including a reader poll, on whether firms will match Sullivan & Cromwell’s yummy spring bonuses….
Nothing depresses me more than when bad things happen in the Caribbean (except for Haiti, ’cause I’m used to it, or Cuba, because they get better health care than we do). Especially during the winter months, I like to imagine that I could leave every material possession behind and move to the Caribbean and find work and happiness.
CORRECTION: The commenters have informed me that Bermuda is not only not a Caribbean island, it is not even a “tropical” island. I apologize for this grievous geographic gaffe. I should also add that my stated desire to move “to the Caribbean” referred to islands in and around the Caribbean. I do not wish to physically reside on the ocean itself, nor with any of the undersea civilizations that ATL commenter-cartographers don’t even know about.
Sadly, it looks like layoffs have a passport. Law Shucks is reporting that lawyers and staff were laid off from the Bermuda law firm of Conyers Dill & Pearman. Many of them were not native to Bermuda. .
There is no “paradise,” not in this global economy…
Brandy Kuentzel, laid-off K&E lawyer turned reality TV star.
Apologies for this very belated coverage of the season finale of The Apprentice, which aired last week. Alas, no member of Team ATL — not even Marin, our resident reality TV addict — actually watched the show. The final episode was a bit like the proverbial tree falling in the forest without anyone around to hear it.
But it seems numerous ATL readers tuned in, even though ratings for the show are down 75 percent since the premiere season. So here’s a post, triggered by your many email pleas for coverage.
We extend warm congratulations to Brandy Kuentzel, the Chicago Law alumna and laid-off Kirkland & Ellis associate who emerged victorious in the reality TV competition. In the finale, Kuentzel defeated a fellow lawyer, Clint — a 40-year-old SMU Law grad described in his NBC bio as “living off of credit” — for the opportunity to work for Donald Trump.
One Brandy fan gave us some background on her: “She went to University of Chicago, started at Kirkland SF as transactional associate. After she got laid off, she started a mobile truck cupcake business.” (Digression: Why is driving a cupcake truck such a popular fallback option for lawyers? See also Kate Carrara, of Philadelphia, and Lev Ekster, of New York.)
Continued our tipster: “Brandy has an insane background story. She’s from Alaska, and moved out at an early age to self-finance her education, after graduating as valedictorian of her high school. Oh, and she is insanely hot. Google her.”
As you can see from her photo, Brandy is most definitely a hottie. But, interestingly enough, Brandy Kuentzel wasn’t quite as smoking hot back in her law firm days….
It’s time for a brief postscript on one of this month’s juicier (and well-trafficked) stories: the dismissal of three women associates from litigation powerhouse Boies Schiller. We have a few additional tidbits that we can share with you.
But this is probably the last story we’ll be doing on this drama, since we don’t expect anything else to emerge. One piece of information we’ve received is that the associates were offered severance pay — “very generous” severance, in the words of one source — but had to release any claims against the firm in exchange. All three took the deal, including the expectant mother. So don’t expect any “Aaron Charney for pregnant women”-type lawsuits.
What other details can we reveal about the situation?
This morning brought more lawyer layoff news. As reported by Peter Lattman over at DealBook, David Boies’s celebrated litigation firm, Boies Schiller, last week laid off three associates.
(The DealBook piece refers to the dismissals as “layoffs,” and we’ve used that terminology in the title of this post and the first paragraph. But whether these terminations should be considered true “layoffs” is open to question — please keep reading.)
As noted in Am Law Daily, the three associates “worked on the firm’s representation of British private equity firm Terra Firma in its unsuccessful civil suit against Citigroup.” Now that the three-week trial is over, presumably the firm felt it could let the women go — and perhaps make them the “fall guys” (or gals) for the adverse result.
Two of three associates used to work in the firm’s former office in Short Hills, New Jersey. After that office was spun off last year into what is now Stone & Magnanini, the two jumped across the Hudson to join the New York office of Boies. So perhaps they didn’t have powerful patrons at BSF – NYC to protect them from the ax.
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: firstname.lastname@example.org.
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When you talk to a prospective lateral about your firm during their first meeting, the conversation can go deep, sideways, and in circles. There is so much to share and discuss. What path of a dialogue can you follow to get better odds of a favorable conclusion?
Consider this template as a model you can use to discuss your firm’s opportunity. This simplifies the conversation and gives you a mental framework so the discussion is meaningful, relevant and moves things forward.
The Four P’s
In my transition from retained corporate executive search to legal search, I saw that there were many levels of complexity in the move of a partner transitioning from firm A to firm B. In placing an executive in a corporation, it was simple because of the linear nature of relationships in corporations. In a law firm, because of the multi-layered aspect of the interdependent relationships that each partner must manage with others, the dialogue is much more involved.
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