No Offers

Bingham’s Billing Battle
(Plus offer rate and real estate news.)

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Bingham logo.jpgAre billing disputes between law firms and their clients on the rise in the recession? We feel like we’ve seen a lot of them lately.
The most recent disagreement involves Bingham McCutchen. A Boston-area investment company, Tuckerbrook Alternative Investments, has sued Bingham, claiming it was overcharged for legal services provided in connection with preparing an SEC registration statement.
The case isn’t that exciting — it seems like a garden-variety fee dispute — but this aspect struck us as interesting. From Massachusetts Lawyers Weekly (subscription):

The Sept. 16 complaint accuses Bingham of stacking the case with young associates who had “inadequate” experience. “The billing statements reflect that these junior lawyers in essence were enjoying the benefits of on-the-job-training at Tuckerbrook’s expense,” the complaint states.

So the allegation is that young lawyers were being trained on the client’s dime. But is that an indictment of Bingham McCutchen, or of the billable hour?
Grumpy in-house lawyers regularly complain about paying for the training of Biglaw’s junior associates. This is why some corporate counsel explicitly refuse to pay for first- and second-year associates (and provide for that in their retainer agreements; presumably Tuckerbrook could have done that here).
More news about Bingham, including its summer associate offer rate and its real estate needs in New York, after the jump.

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(Plus offer rate and real estate news.)”

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  • 24 Sep 2009 at 5:30 PM
  • No Offers

Non-Sequiturs: 09.24.09

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The Future of Red Sox nation.JPG* David Lat, Tony Mauro, and Matt Welch discuss how the new media covers the law. [Legal Blog Watch]
* The 25 “most dangerous” colleges in America. Yes, of course Yale is on this list! [Tax Prof Blog]
* Muammar Gaddafi has some thoughts on international law. [Miss Trials]
* Ladies, “flaunting your curves” does get you noticed. I’m not sure if that is a good thing. [Adjunct Law Prof Blog]
* Complicated laws v. Simple laws. [The Volokh Conspiracy]
* A Red Sox fan was allowed to temporarily leave jail to see a Red Sox game. This bears repeating: post the second, 2007 championship, there is no difference between Sox fans and Yankee fans. None. You’ve become what you beheld and your children will never know the joy of rooting for an underdog. [Yahoo]

Offer Day: Skadden Arps

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Skadden Arps Slate Meagher Flom new.jpgTuesday and Wednesday, offers went out to people who want to participate in Skadden’s summer program. We haven’t heard any solid numbers yet, but so far it appears that prospective summers are satisfied with the results.
No news is good news regarding Skadden. In August, Skadden announced that it would be cutting its summer hiring in half. This morning, Bloomberg News reminded everybody that Skadden will be trying to keep its summer numbers down:

The stark reality of the legal marketplace was illustrated by yesterday’s 2010 job offers by Skadden, Arps, Slate, Meagher & Flom LLP, the highest-grossing U.S. law firm. It projected a 50 percent cut in summer hiring, said Howard Ellin, the recruiting partner for Skadden. The firm hired 225 students this summer and plans to hire less than half that for summer 2010.

But just because Skadden plans to reduce hiring does not mean the firm intends to reduce its offer rate. If the firm planned this right — and based on the NALP forms it looks like it has — Skadden could have simply invited fewer people to be part of its 2010 summer program. Skadden could still give a robust offer rate to the summers that did commit to the firm.
Hopefully, everything will work out for prospective Skadden summers.
After the jump, Bloomberg has some interesting data on how this year’s fall recruiting is going at a couple of top law schools.

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Should 2Ls Accept All of Their Offers to The Detriment of Fellow Students

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Thumbnail image for handshake with fingers crossed behind back.jpgOn Friday, we mentioned that Harvard Law School took on Sullivan & Cromwell over how long to firm would hold open offers for summer associates. It was a good show by HLS.
But the question of what 2Ls should do if they get multiple summer associate offers remains open. Earlier, we suggested that instead of just holding open an offer while they mull it over, we suggested that 2Ls affirmatively accept all of the offers they receive. Later — once the 2Ls have had time to make a considered and wise decision based on relevant financial information about the law firms — 2Ls can call up their firms and revoke the agreement to summer with a particular firm. Hey what is good for the goose is good for the gander, right?
Apparently, bloggers out at U.C. Berkeley disagree. From the Nuts & Boalts blog:

Harvard’s Dean impressed me, and ATL’s advice disgusts me. Boalties: don’t hoard offers. If you have more than one opportunity at your door, it’s time to start making decisions, because the earlier you decline an offer the more likely it will redound to one of your peers.

Whoa. Above the Law-2008 just called, and they want their open thread back.

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  • 18 Sep 2009 at 7:30 PM
  • No Offers

No Offer Open Thread: Who Is Still Waiting to Hear About Offers

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no offer factories.jpgWe’re heading into the weekend and the autumnal equinox is not far off. It got us to thinking, who is still waiting on news about their offers from the summer? We know that some firms have already indicated that they would be making late decisions, but it occurred to us that some summers are honestly still in the dark.
Is there anybody out there in that situation? I feel we keep hearing about one firm in particular that hasn’t made offers yet, but gosh I just can’t remember which one. I think the first name starts with an M, and the last name rhymes with “frown.”
Are there other firms that aren’t even telling 2009 summers when a decision will be made?
Vent in the comments. We’re sure your firms haven’t completely forgotten about you. But you know what they say, the squeaky wheel gets the grease.
Earlier: Prior ATL coverage of no offers

Nationwide No Offer Watch: Finishing Up The Philly Circuit

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no offer factories.jpgWe have reported extensively on the difficult offer situation for people who summered at Philadelphia area firms in 2009. Morgan Lewis & Bockius had an offer rate below 28%. Pepper Hamilton offered about 63% of its summers. Dechert told half of its summers that the firm would wait until January to make a decision offers, yet continues to interview 3Ls this recruiting season.
Let’s close the loop on the Philadelphia market with two other well known firms: Drinker Biddle and Cozen O’Connor. The Legal Intelligencer reports that Drinker Biddle did slightly better than its area competition:

The firm gave offers to about 68 percent, or 25, of the 37 2L summer associates it had firmwide in 2009. The offer rate was about the same in Philadelphia, where 13 of the 19 2Ls received offers, the firm confirmed.

After the jump, Drinker Biddle chairman, Alfy Putnam, explains the firm’s decision.

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Alston & Bird: Sit Tight Summers Your Offer is Still Being Considered

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alston bird logo.JPGSummer associates with Alston & Bird in 2009 are starting to get a little anxious. We know that so far, none of you have received offers. But that is going to change. Alston & Bird will make offers to some people. The firm is just still trying to figure out how many offers to extend. This email was sent from Alston & Bird to its summers on Friday:

Hi everyone -
Just wanted to give you a quick update regarding the timing of offers. You may recall that we’re coordinating our decisions as a Firm this year rather than by office (though offers will be office specific). Unfortunately, not all of our offices are ready with their decisions and as a result, we won’t be able to communicate our decisions this week. We apologize for the delay, and assure you that we will be in touch as soon as possible. Please don’t hesitate to give me a call if you need anything. Many thanks.

One tipster doesn’t think Alston is wondering what its summers need:

She knows what we need…f****** job offers. Hate to say it, but this is definitely bringing the morale of the summer class down. Also seems really sketchy–there are rumors they were interviewing 3L’s. Wonder if that is what the delay is about?

Patience dear 3Ls, patience. Morale is irrelevant. Stick to your 3L interviewing schedule. Alston will get back to you when it is ready.
Earlier: Nationwide Salary Cut Watch: Alston & Bird Makes ‘Temporary’ Cuts
Prior ATL coverage of No Offers

Squire Sanders & Dempsey: Layoffs and No Offers

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Squire Sanders logo.JPGSquire, Sanders & Dempsey has already canceled its 2010 summer program. We received information that Squire Sanders decided not to extend offers to anybody in its 2009 class. A tipster reports:

SSD no-offered EVERYONE this year. This isn’t that surprising given that they’ve deferred this year’s class, canceled their 2Ls who were supposed to return for a cameo and have scrapped summer 2010 already. The hiring partner cited the economy and said that they are making no offers at this time but are keeping everyone on an “offer eligible” list for a potential look again some time in the future.

Our tipsters report that this decision came down yesterday.
Above the Law asked the firm about its decision. Apparently, the firm has had a change of heart.
After the jump, Squire Sanders’s new offer plan, and reports of additional stealth layoffs at the firm.

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Nationwide No Offer Watch: Dorsey & Whitney Brings More News From the Upper Midwest

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Dorsey Whitney logo.JPGIt seems that many of our friends in the upper Midwest are preparing for a long hard winter back on the 3L recruiting circuit. Above the Law has confirmed that Dorsey & Whitney made offers to only 56% of its 2009 summer associates. A Dorsey & Whitney spokesperson broke the news to Above the Law:

Firmwide, Dorsey made 28 offers of employment to the 50 2Ls who were with us this summer, including offers of employment to 16 2Ls in Minneapolis.

The competition was so tough this year that even the 1Ls summering with the firm felt the pinch:

Dorsey also made offers to return for Summer 2010 to 3 of the 8 1L candidates who were with us.

Those 3 1Ls are very lucky. In August, the firm announced that it was canceling its 2010 summer program in offices outside of Minneapolis.
After the jump, the firm and Above the Law tipsters say that economics caused the low offer rate.

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Nationwide No Offer Watch: At Least Pepper Hamilton Breaks 50%

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pepper hamilton summers no offers.jpgIt has not been a great offer season for firms in Philadelphia. Yesterday, we learned that Morgan Lewis & Bockius offered only 27.5% of its summer class.
The news coming out of Pepper Hamilton isn’t quite as bad. But it is not great. Multiple tipsters report that Pepper Hamilton made offers to seven summers, out of 13 people its summer program.
Last year, the firm brought on 38 summers and made offers to 30. Some of our tipsters expressed concern that Pepper significantly reduced the size of its summer program, but still couldn’t find offers for everybody:

There were only a dozen of us. If they didn’t need all of us, why bring us on for the summer? You’d think a major law firm would have better counting skills.

It’s a cautionary tale for 2Ls interviewing with law firms now. Just because firms are reducing the size of their summer programs, it doesn’t mean that the firms are planning on giving offers to all of their 2010 summer associates.
Earlier: Nationwide No Offer Watch: Rocky Balboa Division Blank Rome and Pepper Hamilton
Morgan Lewis No Offer Follow Up

Morgan Lewis No Offer Follow Up

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Morgan Lewis.JPGMorgan Lewis & Bockius has finally come clean about its offer rates to its 2009 summer class. The numbers are not pretty. The Legal Intelligencer reports:

Now that the firm has finished informing summer associates of their status and has made a firmwide announcement Tuesday morning regarding the decisions, Morgan Lewis has provided more concrete numbers when it comes to offer rates.
Firmwide hiring partner Eric Kraeutler said there were 102 eligible 2Ls across the country in this year’s summer program. Of that group, 28, or 27.5 percent, were given offers to start as first-year associates in the fall of 2011 — a year later than would normally be the case given the deferrals of the 2009 first-year class until the fall of 2010.

Last week we reported that MLB would be “extend[ing] only a limited number of offers.” The Morgan Lewis offer rate is certainly limited, but the numbers are much lower than what we’ve seen so far from peer firms.
And remember that Morgan Lewis has already canceled its 2010 summer program. So if the firm needs any more fresh talent over the next couple of years, it will have to be successful in the lateral market. That might be hard to do if the firm slashes base pay as it moves to a “performance based” compensation model.
After the jump, let’s take a look at offer rates in specific offices.

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Nationwide No Offer Watch: Numbers from Kirkland and Orrick

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no offer factories.jpgWe’ve compiled a lot of information about the summer associate offer rates at Kirkland & Ellis and at Orrick. Overall, summer associates had a pretty good chance at nailing down an offer at these firms — though individual results varied significantly depending on which you summer at.
At Kirkland & Ellis, sources report that the firm’s offer rate was a solid 85% firm wide. In Chicago and New York, that offer rate climbed to around 90%.
But out west, things were not as rosy. Multiple tipsters reported that the offer rate out of Kirkland’s Los Angeles office was between 60% and 65%. In Palo Alto, things were even worse. Sources there report a 50% offer rate.
Firm wide, a summer class of around 158 summer associates yielded approximately 135 offers for full time employment. In this market, those are good odds.
After the jump, let’s take a look at Orrick.

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