Are partners just puppets of their law firms’ clients?
Mr. Armstrong sat at the controls of Morgan Stanley, which employed and paid Blank Rome millions of dollars in fees, thus allowing Blank Rome to be the ultimate ‘puppet master,’ as Blank Rome could control Ms. Armstrong’s divorce litigation in a manner designed to protect Morgan Stanley.
– Jonathan Sack, counsel to Kristina Armstrong, in a malpractice lawsuit that Armstrong just filed against her former divorce lawyers at Blank Rome.
(More about Armstrong’s allegations, after the jump.)
Do you remember those Viagra commercials where they tell you to seek medical attention if you’ve had an erection for more than four hours? That seems like a logical course of action — after all, it’s sometimes possible to have too much of a good thing. But what happens when you’re not taking an erectile dysfunction medication, and you’ve been standing at attention for an entire day or more? What should you do then?
Well, most men would take to WebMD in a heartbeat if they knew that their junk was at stake. Most men would immediately seek medical attention, regardless of a potentially long wait time at the hospital, because most men are fairly attached to their penises.
But not this man — he waited politely and patiently to find out that his penis was ruined….
It’s easy and popular to criticize America’s tendency towards over-litigiousness. You can talk and argue all day over abstract ideas, but have you seen the numbers all laid out in a handy-dandy infographic? No? Well, we have a special treat for you….
A wise man once said: “There, but for the grace of God, go I.”
I think of this whenever there are claims of attorneys royally screwing up e-discovery. It’s easy to indulge in some schadenfreude and say, “What suckers!” But truthfully, many firms — even the big, prestigious ones — are more vulnerable than they’d like to admit.
This month, McDermott Will & Emery ended up in the bright, unpleasant spotlight, because a former client sued the firm for malpractice.
Why, you might ask? The firm allegedly botched a client’s e-discovery.
Keep reading to see how the Am Law 100 firm became the e-discovery dunce du jour….
Well, this is pretty much my worst nightmare. Legal Profession Blog reports on the horrible story of Olufemi Nicol:
The Illinois Administrator has filed a complaint alleging that an attorney failed in bad faith to repay his student loans for a graduate business degree obtained after he graduated from the University of Chicago Law School in 1994. From 2006-2006, the attorney held several positions in business including a stint as president of Gear 7 in Los Angeles. The complaint alleges that the attorney received over $78,000 in loans in 2006 and signed two promissory notes. He allegedly has not made any payments on either note.
Okay, phew. I never took out additional loans for further education while I still owed money on my J.D. And I restarted payments — minimum payments — after I got a new job outside of Biglaw. I’m golden. AVOIDING DEBTOR’S PRISON SECURE!
Should Judge Richard Posner leave the Seventh Circuit and run for president? He certainly has the beginnings of a platform.
And, despite some possible leftward drift, Judge Posner’s tendencies still seem to point in a libertarian direction. From The Atlantic:
1. Remove all limits on the immigration of highly skilled workers, or persons of wealth. (This should be done gradually, so as not to increase unemployment while the unemployment rate remains very high.)
2. Decriminalize most drug offenses in order to reduce the prison population, perhaps by as much as a half, which will both economize on government expenditures and increase the number of workers. (Again and for the same reason, phase in gradually.)
3. Curtail medical malpractice liability, which increases medical costs gratuitously (because the courts are very poor at identifying actual malpractice) and, more important, engenders a great deal of very costly, and largely worthless, “defensive medicine.”
Is suing a former client for unpaid bills a wise idea? Maybe not. As John Marquess, president of Legal Cost Control, told the New York Law Journal, “If I were advising any law firm, I would tell them suing a client over fees is a no-win situation. It’s going to get you adverse publicity you may or may not recover from. And if it went before a jury, juries hate lawyers.”
And what if your ex-client is, say, a green company devoted to the cause of sustainable forestry? Going after that client seems like an even worse idea from a PR perspective. Al Gore would not approve.
A financing unit of Cerberus Capital Management L.P. has sued Paul, Hastings, Janofsky & Walker, claiming the law firm gave it bad advice in connection with a loan the private equity firm made last year to a company looking to bring retailer Steve & Barry’s out of bankruptcy.
Ableco Finance LLC, a unit of Cerberus with more than $6 billion under management, filed an amended complaint Friday in Manhattan Supreme Court against its former lawyers seeking more than $55 million it said it lost because of the $125 million loan. Ableco claims it would never have made the loan last year if the Paul Hastings team had advised it that the buyer would not have rights to all of Steve & Barry’s inventory, which Ableco understood would back the loan.
“No competent, diligent finance lawyer would have put his client in such a vulnerable position,” Ableco’s complaint reads in part.
Ouch. We agree with Ashby Jones of the WSJ Law Blog: “It’s never good for a law firm to get sued by one of its clients. But when the client is a deep-pocketed heavyweight like private-equity giant Cerberus, the news is probably especially unwelcome.”
But Paul Hastings is fighting back, with the help of high-powered counsel.
When Chintan Panchal decided to leave a global BigLaw partnership to start his own firm, he could only hope that he would face the high-quality problem of firm building that many had cautioned him about. Focused on the uncertainty surrounding of a new firm launch, he decided to tackle staffing needs, IT challenges, and financial planning requirements after he had built up his legal practice.
Panchal Associates LLP–a corporate/finance and outside general counsel boutique–was quickly off to a great start. Clients and matters were flying in the door, and Chintan soon had a team of lawyers and staff with a variety of operational needs. To continue building an excellent team and provide them with a competitive benefits package, to expand his physical presence to include a European practice and additional partners, and to scale his operations and IT capabilities to support this growing enterprise brought with it demands of time, money, and expertise. Chintan knew he needed help.
“With the assistance of NexFirm, we have upgraded the capabilities of our firm to meet, and in some cases exceed, the standards we were used to at our former BigLaw firms. Operationally, we can now attract and service clients we didn’t have the bandwidth to support in the past, and continue to build our team with the best and brightest legal talent in the industry,” said Chintan Panchal, adding “It has worked out quite well in our case; NexFirm is an essential partner for us.”
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
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: email@example.com.
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