Over the break, a reader sent us this article, accompanied by a quip: “Looks like BigLaw is funding some new research.”
Our first reaction: A brain chemical you snort to replace sleep? It’s called “cocaine.”
But today we have a second reaction: Would such research, if funded by Biglaw, be a waste of time? Law firm associates — and partners — sacrifice sleep to rack up billable hours. But is the billable hour on the way out?
Over at Slate, in a piece entitled “How to Kill the Billable Hour,” Lisa Lerer writes:
[C]riticisms [of the billable hour] lobbed by academics, associates, and bloggers have had a negligible impact. Making such a significant change takes a more powerful force in law firm life: the client. And now, finally, the companies that pay millions in hourly rates are striking back, forcing their law firms to cut some tough, nonhourly fee deals. If anyone can tame the billable beast, it’s the clients who feed it….
Cisco, Pitney Bowes, Caterpillar, and several other large corporations have begun to force their law firms into alternative billing arrangements. The companies push flat fees and volume-based discounts, and ban young associates from working on their business, hoping to avoid paying through the nose for work that could be done more cheaply by paralegals or temp lawyers. They say that by eradicating or at least limiting hourly rates, they avoid cost creep, cut their bills, and better predict their expenses.
Writes an ATL reader who works at a prominent New York law firm: “Great. Now it won’t matter that I bill 2500 hours a year.”
A little more, on the other side of the rainbow.
This announcement, apparently from celebrity commenter Loyola 2L, was posted earlier at the WSJ Law Blog (which recently named him their Lawyer of the Year). But in case you missed it, check it out:
—–Original Message—– From: [Deleted] Sent: Tuesday, January 01, 2008 12:26 AM To: Above the Law; WSJ Law Blog Subject: Retirement email from the poster Loyola 2L
Dear WSJ Law Blog and Above the Law,
I hope the new year treats you well. This is the blogger known as “Loyola 2L.” First off, I hope you can see why I combined you into one recipient. I know it’s rude to combine recipients, but both of your blogs have been a central part of my life for the past year and I couldn’t write one without the other.
No offense taken — we’re honored to be in such distinguished company.
Read the rest of his message, below the fold. (An ATL New Year’s resolution: Use more synonyms for “after the jump.”)
Happy New Year, dear readers of ATL! We hope that you had an enjoyable and restful holiday season; we know we did.
Now we’re back, after a pleasant holiday hiatus. Did you miss us?
We’re looking forward to another fun year of dishing legal gossip, as well as chronicling associate pay raises and partner profits (God willing). We’re still in the process of catching up on email and legal news, so please bear with us. If you have a juicy tip to share, please do email us.
Here are some of our ATL-related New Year’s resolutions:
1. Wake up earlier. (When you work from home, it’s easy to oversleep.)
2. Respond more promptly to emails that require a response.
3. Stop feeling guilty about not being able to respond to every last email (because, given the volume of email we receive around here, it’s not possible to respond individually to each and every message — for which we apologize).
The Legal Eagle Wedding Watch is kicking off 2008 with a few leftovers from 2007. But we think you’ll agree that these offerings are worth savoring. These couples have got a little bit of everything: brains, looks, athletic ability, and (something that never goes stale) lots and lots of money.
Here are the contenders:
* Dahlia Lithwick lists the Bush Administration’s 10 dumbest legal arguments of 2007. Number 3 is “Alberto Gonzales.” [Slate]
* Law student/beauty queen charged with kidnapping and torturing ex-boyfriend. [Fox News]
* Murdered Bronco cornerback’s family and teammates await arrests. [MSNBC]
* Banished words list once cited by AZ Supreme Court justice includes “surge,” “organic,” and “it is what it is.” [CNN]
* Rodriguez surprised by WVU lawsuit after bolting for Michigan before contract expiration. [ESPN]
* Rest in peace, Benazir Bhutto; God knows you weren’t able to live in it. [CNN]
* That seems like a pretty good starting point for liability against the zoo. [BBC]
* We don’t know if you know Tom Goldstein, but he’s a pretty big deal. [SCOTUSBlog]
* If he could only apply all of that genius to acquiring some money to actually make a mortgage payment… [WSJ Law Blog]
* NRA defends the rights of hurricane victims to shoot at the National Guard keep guns. [AP via How Appealing]
* French “aid” workers sentenced to eight years of hard labor in Chad “orphan” case. [Jurist]
* Apparently if you’re a rapper you can show up at court when you damn well please. [Athens Banner-Herald]
* If you feel guilty about it, at least you can take comfort in the fact that you’ve helped set up an appeal. [CNN]
* Would a holiday search be unreasonable? [Findlaw via How Appealing]
* Is the DOJ passing up a chance to crack down on plaintiff’s lawyers? [WSJ Law Blog]
* Nothing but a G string. [CNN]
* Toby Keith puts his boot in the defendant’s ass in the form of a $2.8 million verdict for his family in a suit over the wrongful death of his father. [AP via Asbury Park Press]
We hope that you’re having a wonderful holiday season and are getting some well-deserved rest — as are we.
As was the case last year, we’ll be on a reduced publication schedule between now and the new year. We’ll return to a normal schedule on Wednesday, January 2, 2008.
To those of you who celebrate it, Merry Christmas! And a happy new year to all.
* Top legal stories of 2007. [CNN]
* Stop complaining, civil libertarians. Things could be much worse. [New York Times]
* A leadership vacuum at the Department of Justice. [Washington Post via How Appealing]
* And don’t look to recess appointments to address the problem. [Washington Post]
* A different kind of “pole tax,” which will divert five dollar bills from g-strings to g-coffers. But does it violate the First Amendment? [AP; TaxProf Blog]
* Union members: You’ve Got Mail. Oh wait, you don’t — at least not of the union-related kind. [New York Times]
* Adam Liptak asks whether a “Judicial Hellhole” is in the eye of the beholder. Also, a quote from Dickie Scruggs that maybe he wishes he could take back. [New York Times via WSJ Law Blog]
Let’s send you into the holiday weekend with some associate bonus news. Here are some law firm bonus announcements that haven’t been previously covered in these pages.
(Firms that previously announced their bonuses, but are being sneaky about the exact amounts and/or the percentage of associates getting them, will be addressed separately. This post is for completely new announcements.)
Some of this news is incomplete. If you can provide more details, please email us. Thanks.
1. Akin Gump (New York): Year-end bonuses, and special bonuses to “those associates and counsel who have performed in accordance with the Firm’s expectations regarding productivity, quality of work and Firm citizenship.” Plus “discretionary merit bonuses” to associates and counsel “who performed in a truly exceptional manner.”
One source at the firm characterizes it as follows:
Full match in NY, with extra bonuses in certain cases (generally to billers over 2400). There has never been an hours requirement, so if past practice is any indicator, anyone not being fired will get it.
Full memo, after the jump.
2. Akin Gump (outside New York): Each associate is allowed to make the case to the firm for a big bonus. A source tells us that this practice of asking associates to write up memos to justify their bonuses started a few years ago. “I wonder how this plays into the current bonus climate, or if anyone else has to do this.”
3. Hogan & Hartson (outside New York): The 2007 bonus memo appears after the jump.
4. Hogan & Hartson (New York): We’ve confirmed the fact that Hogan announced bonuses in New York. It was described to us as a market match. But we haven’t seen a memo or the fine print of the announcement, so we can’t confirm that. Update: The bonus memo for Hogan & Hartson’s New York office appears after the jump.
5. Vinson & Elkins (New York): “V&E matched the New York market bonus (including this year’s special bonus) for its New York associates, to be paid on January 15, 2008. No memo yet, a voicemail.”
6. Sheppard Mullin: Details after the jump.
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 protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.