Screw-Ups

Finally, an Elena Kagan Scandal: A Hit-and-Run Car Accident!

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The Senate confirmation vote on Elena Kagan’s nomination to the Supreme Court has been pushed back one week, to July 20. This gives the Republicans more time to try and persuade a few Democrats to vote against Lady Kaga.

As they try to win over Democrats, the Senate Republicans have some new fodder: a Kagan-related scandal! A hit-and-run car accident, involving thousands of dollars in damage! To a minivan — owned by the mother of a disabled child!

Alas, the Divine Miss K wasn’t at the wheel. Who was?

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Welcome, Summer Associates! We’re Glad You’re Here, But Clients Aren’t.

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It’s summer time! A lucky few are being paid to warm seats in law firms across the land. (Very few — thanks to the minimal numbers of offers extended to law students in Recession Land.)

Some firms are very excited about their summer associates, to the point of issuing press releases about them. Firms are planning fun events. Hopefully, Williams & Connolly offers cooking classes at a culinary institute again this summer (for those who don’t get offers and may not be able to afford to eat out one day). We’ve got a round-up of our favorite summer “happenings,” after the jump.

But one thing firms may not plan to do this year is bill for summer associates’ time. Nate Raymond reports in the New York Law Journal that Citigroup Inc. has told its outside counsel that it will not pay for law students’ time. Citi does not stand alone:

J. William Dantzler Jr., a tax partner at White & Case who oversees hiring in New York, said with regard to billing clients for summer associates, it has been “a slide for 10 years.”

“More and more clients don’t want summer associates to bill to them,” he said. “When I started almost all clients would accept it. And it’s evolved to where a lot of clients don’t.”

Ironically, because of the huge decline in the number of summers brought in, they’re more likely to actually do substantive work this year. One Biglaw firm, for example, instituted a requirement last year that every summer associate produce at least one piece of seriously impressive legal writing. Which firm is it?

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Cornell Contracts Exam Should Fail for Ambiguity, Vagueness

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With all the students just dying to get into Cornell Law School, I figured I’d give you guys a taste of what exams will be like for the few of you lucky enough to get in. A contracts exam there turned into something so complicated that you need to be an expert in statutory interpretation just to understand the rules for the exam.

In law school, you’re supposed to learn to be careful with words. Really careful. Now, I didn’t really take that lesson to heart, and apparently neither did professor Chantal Thomas. She gave out some pretty mixed messages regarding the word limit for her contracts exam.

Tipsters report that in class, Professor Thomas said that there would be a word limit. But even that in-class directive was vague:

She said, “well, maybe 1000 words.” This in itself is ambiguous. 1000 words per question? 1000 words for the whole exam?

Perhaps you think that the exam itself would make clear this most basic exam parameter? Think again…

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Open Thread: 2011 U.S. News Law School Rankings (Fourth Tier)

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This is the end
Beautiful friend
This is the end
My only friend, the end

We’ve come to the end of the U.S. News Law School Rankings. The Fourth Tier. The schools that are friends to those who will do anything in order to go to law school. Here is an open thread to discuss these schools, collectively or individually, and to compare and contrast.

Are any of these schools worth the price of admission? Well maybe for the Lulz. Check out how even high-achieving students get treated at 4th tier Atlanta’s John Marshall Law School…

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Stroock Strikes Back? The Firm’s Client Sues Andrew Cuomo in Federal Court

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We’ve previously covered a sticky situation involving an alleged drafting error by real estate lawyers at Stroock & Stroock & Lavan. The dispute pits the buyers of luxury condos at the Rushmore, on Manhattan’s Upper West Side, against the development company Extell, Stroock’s client. (Our prior coverage appears here, here, and here.)

When we last checked in, the New York Attorney General, Andrew Cuomo, had sided with the buyers and ruled against Extell. But instead of just rolling over, which is what most folks do when attacked by the New York AG, Extell is fighting back. From the Real Deal (via Am Law Daily):

In a last minute and stunning move, the developers of the Upper West Side’s Rushmore condominium filed a federal lawsuit [on Monday] against state Attorney General Andrew Cuomo seeking to reverse his April rescission order to refund more than $16 million in escrow funds to buyers.

The developers, Extell Development and Carlyle Realty Partners, operating under the name CRP/Extell, also filed a motion in U.S. District Court seeking a temporary restraining order that would block the release of the funds, which include down payments for more than $110 million worth of apartments.

In its moving papers, Extell kind of throws Stroock under the proverbial bus — but just a little bit….

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A Strike Against Stroock: New York AG Rules Against Extell

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Last summer, we wrote about an apparent drafting error by lawyers at Stroock & Stroock & Lavan that “could cost Stroock’s client millions.”

Time for an update: it looks like the mistake will cost Stroock’s client millions. The Wall Street Journal reports:

A long-simmering dispute between Extell Development Co. and individuals who agreed to buy condominiums in one of the developer’s new luxury Manhattan buildings ended Friday when the New York Attorney General ordered Extell to refund $15 million in down payments.

The ruling is a setback for the New York-based developer, which stands to lose more than $100 million in apartment sales, according to person familiar with the matter.

It is also a potential embarrassment for the white-shoe law firm Stroock & Stroock & Lavan, which prepared the offering plan for the building. The plan included a mistake that contributed to the ruling in favor of the buyers.

In our last post about this situation, several ATL commenters offered legal analysis. How did they fare?

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The Lost Class Does Not Even Warrant A Spellcheck?

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A University of Tennessee College of Law student sent along this photo:

The class composite is hanging in the entrance to the law school library.

Maybe the extra “s” stands for screwed?

In-House (and Inactive) Lawyer of the Day: Jonathan Moss

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Gucci 'sacks' in-house lawyer, Jonathan Moss

Gucci wants g’s for the use of its big G. Gucci sued Guess Inc. in 2009 for trademark infringement, for allegedly selling knock-offs of its designs and for using the interlocking “GG” pattern.

Guess may be the company making knock-offs, but Gucci’s the company with fake lawyers. Gucci recently fired in-house lawyer Jonathan Moss because he had been working for the company since 2002 with a lapsed license. Gucci revealed this on Friday in a motion requesting that his inactive status not invalidate attorney-client privilege.

From Women’s Wear Daily:

According to court documents filed Friday, Gucci America Inc. terminated Jonathan Moss on March 1. Gucci said it discovered in January that Moss’ status with the California bar had been inactive for the whole of his seven-year run as legal counsel with the firm. Guess has sought access to Moss’ communications regarding a trademark infringement lawsuit Gucci brought against it in U.S. District Court in Manhattan last year. Gucci’s disclosure came in a memo backing a motion that the attorney-client privilege should still apply to his involvement in the case.

So why did Moss let his license lapse? Apparently, he wasn’t making enough money in-house to keep his status active…

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Gibson Dunn Discovers a Typo

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Steven Donzinger has been working on behalf of Ecuadorian natives for seventeen years, representing them in a lawsuit against Chevron alleging the oil company has destroyed their rainforest. It’s a much-covered case, and Harvard Law grad Donzinger has usually been cast as the hero fighting the big bad oil company.

But it looks like Donzinger’s legal team may have done something a little dastardly.

From the Wall Street Journal:

In 2004, the plaintiffs hired Mr. Calmbacher, a Georgia-based biologist and environmental scientist, to help oversee soil and water tests in Ecuador.

Reports signed by Mr. Calmbacher, which were submitted to an Ecuadorean court in 2005, showed high levels of toxins at two sites and estimated the contamination would cost more than $40 million to clean up at these sites alone.

Gibson Dunn lawyers representing Chevron Corp. discovered a typo in those reports: the spelling of Charles Calmbacher’s name. When Gibson lawyer Andrea Neuman (who looks a little like Kristin Davis with short hair) deposed him, she discovered the toxin reports were a bit polluted…

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Here’s One Way To Reveal Your Firm’s Non-Equity Partners

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It’s one of the few things still shrouded in secrecy at most firms: which partners have equity in the firm and which don’t. Actual partners, of course, get a share in the firm’s profits, and are part of the PPP calculations reported by Am Law. Non-equity partners get the partner honorific, but in actuality they’re often just glorified senior associates, at least when it comes to matters like salary and major firm decisions. (Of course, this varies from firm to firm.)

Being a non-equity partner can be nice. You generally don’t have to toil on management committees or get caught up in partnership politics, and you may be less personally exposed to financial fallout should the firm’s fortunes sour (assuming the equity partners made personal guarantees on loans). But being a non-equity partner is also like being a stepparent that the children don’t respect. You don’t have any real power and don’t get to reap the full rewards from your investment and care.

Women and minority groups have tried to put pressure on firms to reveal partners’ equity or non-equity status when it comes to diversity reporting. But firms have resisted, saying that they don’t want to stigmatize non-equity partners. Angela Onwuachi-Willig sums it up on Concurring Opinions:

Over the past two years, the National Association for Law Placement (NALP) has tried to obtain information regarding the breakdown of equity and non-equity partners by gender and race at law firms. The majority of NALP’s law firm members refused to hand over the information, and NALP eventually gave in on February 12.

The Executive Director of NALP, [James] Leipold, indicated that most firms cited privacy concerns for not divulging the details of their equity and non-equity partnership breakdowns. According to Leipold, small firms especially worried that providing such information would allow non-equity partners to be easily identified and stigmatized.

Well, Delaware firm Young Conaway Stargatt & Taylor has revealed who its non-equity partners are, though it did so by accident. The firm’s controller needs a little lesson on the use of “bcc”…

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Cooley Law Dropout Learns a Lesson in Res Judicata

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Cooley law school logo.jpgWhenever we write about Thomas M. Cooley Law School, commenters cannot resist reminding us of Cooley’s business model. The school admits a large number of 1Ls. If they can’t hack it, they are dismissed.

So what happens to the kids who couldn’t hack it at Cooley? Well, sometimes they sue the school for discrimination. But, because they washed out at Cooley, sometimes they still haven’t learned some very basic 1L principles — like res judicata. Here’s the summary of the Sixth Circuit opinion in the case of Buck v. Thomas M. Cooley Law School:

Plaintiff appeals from the district court’s dismissal of her lawsuit against her former law school as barred by res judicata and a lack of causation. She previously litigated earlier acts of discrimination against her law school in Michigan state courts, and had secured a preliminary injunction allowing her to attend classes. She was then dismissed from the law school on academic grounds. Because plaintiff should have supplemented her complaint in state court with claims that arose during the pendency of that suit, she is precluded by res judicata from raising these claims now. Therefore, we AFFIRM.

It’s a shame that Cooley admits people who can’t understand basic principles of civil procedure. Even if plaintiff Buck had a good argument for setting aside the principle of res judicata, she does a terrible job of making her case to the Sixth Circuit ….

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Wake Forest Gives Law Students Money, Takes it Back Immediately

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Wake Forest Law logo.JPGFor one glorious moment, prospective law students thinking of going to Wake Forest Law School learned that they had received the Melanie Nutt Scholarship from the school. Then, in an instant, the scholarship was recalled. Apparently the offer of free money was a technical error:

About ten minutes ago I received an e-mail from them telling me I had been offered a $30k/year scholarship. Obviously I was thrilled, as Wake was (keyword: was) at the top of my list. Before I could gloat to my friends, I received a follow-up e-mail …

That follow up email had “ERROR” in the headline, so students knew it couldn’t be good. Apparently there was a technical glitch and a number of students were accidently promised scholarship money.
And the mistake wasn’t limited to just one poor soul.

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