This is the first of a four-article series focusing on the following matters:
First Article – Profits Per Partner: A Good Servant But A Bad Master
Second Article – A Profits-Per-Partner Emancipation Plan
Third Article – Beyond Profits Per Partner – Embracing Volatility
Fourth Article – How to Embrace Volatility as a Law Firm
Those of us running law firms have two sets of clients:
Clients – parties that hire us for legal work.
Lawyers – parties that do the legal work for the clients.
One without the other is pointless, obviously – they are yin and yang. However, despite this almost symbiotic relationship, most law firms are set up to attract great clients a lot more than they are set up to attract great lawyers. That is how law firms define “marketing.” The other function is called “recruiting.”
Indeed, let me ask you — in your firm, which is cooler: to be on the marketing committee, or to be on the recruiting committee? Which one is more likely to result in success at your firm, including money, power, fame, a big office, etc.?
If you’re going to steal millions from clients, at least make a good story out of it. Like blowing hefty sums on luxurious private air travel and wiring millions to casinos to cover gambling debts. Make it a rock star story right up until the very end.
Of course, it’s hard to imagine a lawyer successfully stealing millions. There are just too many checks in place to let it get that far. It felt like the only thing anyone needed to know to pass professional responsibility was to respect escrow accounts. You just make sure all the money you’re watching for your customers, consumers, lenders and employees is always accounted for. There’s inevitably more than one person handling the bank statements. It’s just hard to lose millions.
Nonetheless, one law firm with offices around the country thinks it’s discovered more than a minor problem in its accounts. In fact, it just filed a lawsuit against its former managing partner, alleging that he siphoned off a cool $30 million from client escrow accounts to live like a proverbial rock star….
* First things first, she’s the realest: In light of the ongoing situation in Ferguson, Missouri, of course Justice Ruth Bader Ginsburg acknowledged that we have a “real racial problem” in America. [National Law Journal]
* Cooley Law has experienced legal troubles over its job stats for the past few years, and a great deal of it has been handled by Miller Canfield. It raked in almost $1M from the school from 2011 to 2012. [Am Law Daily]
* Yesterday, a federal judge in Florida struck down the state’s ban on gay marriage as unconstitutional. The latest opinion is one of nineteen in favor of marriage equality. The decision was stayed, but yay for Flori-duh! [CNN]
* Half of Concordia Law’s third-year class will not be returning to school this fall because they’d rather wait to receive word on whether the school will be accredited than waste more of their time there. [Boise State Public Radio]
* Thanks to JudgmentMarketplace.com, a dentist was finally able to collect on a a years-old default judgment against Kim Kardashian — but only because a lawyer bought it from him. [WSJ Law Blog]
In today’s Lawyerly Lairs column, we’ll step inside the beautiful home of a Biglaw partner — a name partner at an Am Law and Vault 100 firm, in fact. There aren’t many of those folks still around, since most of the nation’s largest and most prestigious firms are so old. Paul Cravath died in 1940, in case you’re wondering.
But there are a few Biglaw name partners around — at (relatively) young, super-profitable firms, like Wachtell Lipton, Quinn Emanuel, and Boies Schiller. And these lawyers own some fabulous real estate.
Which they sometimes put on the market. Let’s look at the next item up for bids: the D.C. home of a leading litigator, on the market for $4.85 million….
A year ago, in writing about how major law firms performed in the first half of 2013, I wondered whether Biglaw might be the proverbial frog in boiling water. I now wonder whether the analogy might still hold, but in a good way: could we be witnessing a quiet boom for Biglaw, happening so gradually that we don’t even realize it’s here?
In the past few weeks, a slew of mega-mergers have made headlines — which will hopefully turn into contributions to law firm coffers. But even if you focus just on the first six months of 2014, excluding the busy months of July and August, there’s good news to report.
Our friends at Citi Private Bank, a leading law firm lender, just released their report on how Biglaw fared in the first half of 2014. What are the key findings?
Make fun of the University of Chicago Law School’s law-and-economics focus all you want. Their graduates make good use of the training, enjoying tremendous success in the business world. Some of them go on to become billionaires — and then make eight-figure gifts to their alma mater.
The legal eagle featured in today’s Lawyerly Lairs coverage isn’t a billionaire, but he has done very, very well for himself, in both business and politics. And real estate: he just sold his urban mansion for more than $11 million.
You’ll feel pangs of envy when you find out how little he paid for it — and when you see what a beautiful property it is….
Meditate on that for a moment. Breathe in through your nose. Breathe out through your mouth.
Five million bucks per year.
Breathe in through your nose. Breathe out through your mouth.
I lost the slidy-thing from my slide ruler so I have to do this in my head, but I think that’s about $100,000 per week per equity partner. A little less than a newbie associate makes in a whole year outside of the major metropolitan areas.
Imagine all the things you can buy with that kind of money. A mansion that looks somewhat familiar every time you visit it. Luxury vehicles for your nanny. Dream trips for your spouse. The finest private schools for your kids. An iPhone for your son so he can talk to you every day. A high-end camera your wife can take to your daughter’s soccer game so you can watch her play through live streaming video. Oh, the joy that kind of money you can bring your family. It’s not Powerball, but it’s most certainly a lottery win per year.
But some of you will still go to law school for the wrong reasons and pay rip-off prices. Ego, familial expectations, and peer pressure may play a role in your decision. So I want to finish the law-school-themed posts by issuing a warning to students and their parents about the consequences of graduating without a meaningful job and with six figure, nearly nondischargeable student loan debt….
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: