I recently participated in a Room for Debate forum for the New York Times on the controversial subject of unpaid internships. Critics of these positions argue that such exploitative arrangements contribute to “constricted social and professional mobility, growing inequality, and an economy whose top tier is becoming less and less diverse” (in the words of Ross Perlin, author of Intern Nation: How to Earn Nothing and Learn Little in the Brave New Economy).
In my contribution, I offer a measured defense of unpaid internships — of the non-abusive variety, in which the intern receives a valuable learning experience (and doesn’t just do scut work) — and also a defense of the status quo (under which most unpaid internships are technically illegal, but enforcement isn’t super-vigorous). You can read my NYT piece here (or on page 9 of yesterday’s Sunday Review section, if you’re a print person). You can also read a piece by Camille Olson, a labor and employment partner at Seyfarth Shaw, over here (focusing on the legal aspects of unpaid internships, and offering general guidelines to companies considering them).
Speaking of interns, Above the Law is looking for one — a paid intern, for the record. Details appear below, along with general information about our hiring needs, and our policy on guest posts or outside contributions….
Continue reading “On the Legality of Unpaid Internships
(And: ATL seeks a paid intern.)“
This week, Seyfarth Shaw announced the arrival of two construction litigators from Howrey, David Mancini and James Newland Jr. The two partners have been on the Seyfarth website for a while, as we noted last week, but Seyfarth made it official on Monday with a press release.
The other big news this week at Seyfarth: payment of bonuses. Alas, this news isn’t being as warmly received as the Howrey partners.
“Very individualized and below market as usual,” said one source. “No mention of spring bonuses either.”
A second tipster was even more angry….
Continue reading “Associate Bonus Watch: Seyfarth Shaw”
We’re hearing reports — not yet confirmed, so please take them with the proverbial grain (or shaker) of salt — that Winston & Strawn has rescinded some or all of its offers to partners of Howrey.
The supposed catalyst for the collapse: antitrust star Sean Boland, who had been leading the talks on the Howrey side, pulling out of the deal. It has been rumored that he might take his team not to Winston but to Baker Botts (which has already absorbed other Howrey talent).
What we do know for certain is that the partner exodus from Howrey continues. Here is the latest confirmed news.
UPDATE: Various updates have been (and are still being) appended — after the jump….
Continue reading “Howrey Going to Save the Winston Deal?”
The spinning of the revolving door at the beleaguered Howrey law firm is making our heads spin here at Above the Law. Keeping track of all the partner departures is becoming quite the challenge. We’ve collected some links about the latest partner defections, after the jump.
At this rate, it’s not clear how many lawyers will be left for “rescue” by white knight Winston & Strawn. (Protip: check the armor for bedbugs.)
Here’s some new (but hardly surprising) information: Howrey has canceled its summer program. Yes, the famous Howrey Bootcamp, touted by the firm as “[f]ar more intense and rewarding than traditional summer associate programs,” and offering “an entirely unique approach to associate recruitment and training.”
Bootcamp participants received intensive litigation training — and inspirational poetry from firm CEO Robert Ruyak, which we share with you below….
Continue reading “Howreying for the Exits: More Partner Departures; Bootcamp Gets the Boot”
Stephan Addison (left) and Benjamin Butler (right)
We like to provide updates on lawyers we’ve covered in the past, just to close the loop and keep readers informed. For example, if a lawyer is accused of wrongdoing, we cover the allegations, and then the charges are dropped, we’d like to write about the clearing of that person’s name. (If you’re aware of such a situation, please email us.)
Sometimes attorneys are punished rather than exonerated, however. Today we bring you news about the Illinois bar’s disciplining of Stephan Addison and Benjamin Butler, both 2004 graduates of the University of Wisconsin Law School, whom we first wrote about back in 2007. The two were once associates at large law firms — Addison at Seyfarth Shaw, and Butler at Schiff Hardin. They left their firms after being accused of sexual assault, after a drunken three-way hook-up that went very, very wrong.
So what are they up to now?
Continue reading “Ex-Biglaw Bad Boys Accused of Sexual Assault:
Where Are They Now?”
There are a number of firms that aren’t up to speed with this whole “social media thing.” But they should be, because their clients are.
American Lawyer Media, Zeughauser Group and communications firm Greentarget surveyed 164 in-house counsel about their social media habits. Lo and behold, they are making use of blogs, Twitter, LinkedIn and Facebook to get their legal information… and, perhaps more interestingly, to judge law firms.
In-house counsel still primarily rely on “referrals from trusted sources and credentialing activity (i.e., demonstrations of thought leadership)” to choose outside lawyers, but they are increasingly taking brilliant tweets and blog posts into consideration…
Continue reading “Many In-House Counsel Are Social Media Savvy. But Biglaw Firms? Not So Much.“
Apparently, cutting salaries, changing its compensation structure, and canceling its summer program just isn’t getting Seyfarth Shaw the kinds of cost savings it needs.
So the firm has returned to the old fail-safe option: layoffs. Am Law Daily reports that the firm laid off approximately 20 attorneys and 20 staffers.
The firm-wide email from Seyfarth Shaw describes the layoffs as needed to better position the firm to take advantage of “opportunities” in the market:
We see opportunities for creating or strengthening client relationships in all of our departments; however, we also know that we must approach these opportunities with the most effective use of our people and their skills.
As a result, we implemented today a separation of approximately 20 attorneys and approximately 20 staff members from a total of about 1,500 people nationwide. In some cases, these decisions were made to better match current or anticipated workloads; others were made as a result of our annual performance management process for attorneys. The separations were spread across multiple offices and practice groups. We have talked to each person affected prior to the distribution of this e-mail.
One Seyfarth Shaw tipster who still has a job told us that they preferred layoffs of some people over additional salary cuts for everybody.
Clearly, we’ve moved well beyond the “survivor’s guilt” stage of Biglaw layoffs. At this point, people are just trying to hang on.
Read the full Seyfarth layoff memo, after the jump.
Continue reading “Nationwide Layoff Watch: Seyfarth Shaw Cuts 40 People”
Seyfarth Shaw held its firm wide meeting on Monday, and we (finally) know what went down. The top line news is that Seyfarth will be moving to a pure competency based associate compensation system. But it won’t be fully up and running until 2011. Seyfarth’s managing partner, Steve Poor, issued this statement to the firm after the meeting:
We all recognize that the profession of law is changing in some profound and fundamental ways. Our Firm is making strong strides to align our services with changing client needs through initiatives like Seyfarth Lean, which are gaining strong recognition and support from many of our clients. We discussed another key change that we will introduce more formally in January — one that will change the way we train, develop, recognize, reward and promote our associates. We will be moving to a full competency-based talent system that will be phased in over the course of 2010. We believe this effort will benefit our clients, our Firm and each of you individually. Promotions and compensation will no longer be tied to class years, so that you will be able to excel and be recognized based on your individual skills and accomplishments. Enhanced training will help you develop broad-based skills to add greater value and meet changing client needs, like those being evaluated in the ACC Value Index. More information will be coming to you next month and throughout the year.
So, like Sonnenschein and WilmerHale, Seyfarth will be changing associate compensation, but it’s not yet prepared to tell its associates (or its recruits) how much they’ll be making under the new model.
Despite not being ready to roll out its new program, Seyfarth will still be taking a look at associate costs for 2010. Details on Seyfarth’s 2010 structure after the jump.
Continue reading “Seyfarth Shaw Mystery Meeting Follow Up: Another Firm Moves to Kill Lockstep”
Earlier today, we reported on a mystery meeting taking place at K&L Gates next week. Apparently K&L is not alone. Seyfarth Shaw is also calling all of its associates together just before the holidays. Yuletide cheer is sure to follow:
Please join Steve Poor for a national videoconference with all Seyfarth associates on Monday, December 14 at 1p Pacific/3p Central/4p Eastern. Following the videoconference, your Office Managing Partner will facilitate a local discussion to address issues and questions you may have. Please make plans to attend; the total time commitment will be no more than an hour.
Seyfarth gave its associates a little more information about what will go down at the meeting. Details after the jump.
Continue reading “‘Tis the Season for Mystery Meetings”
Back in February, we covered a legal malpractice lawsuit brought by Billy Blanks, the Tae Bo king, against his former firm, Seyfarth Shaw. A jury found in Blanks’s favor and issued a $30 million verdict, but that verdict was overturned on appeal, due to flawed jury instructions. A new trial is set for July 2010.
In the meantime, an interesting related lawsuit has been filed. As reported by Leigh Jones in the National Law Journal (via the ABA Journal), William Lancaster, a nonequity partner at Seyfarth Shaw, has sued his own firm. And he’s pulling an Aaron Charney — he’s still working for the firm he’s suing, in the Los Angeles / Century City office, and he’s still on the website. That sounds a bit awkward.
Lancaster, a former equity partner at Seyfarth Shaw, alleges that he was the subject of an unfair demotion and associated pay cut. His complaint constitutes an indictment of Seyfarth’s overall firm culture, which he claims has sacrificed values of professionalism and collegiality on the altar of Mammon.
More juicy details, including internal emails and a link to the full complaint, after the jump.
Continue reading “Lawsuit of the Day: Lancaster v. Seyfarth Shaw
Partners told to ‘hustle for cash,’ congratulated for ‘prying cash out of clients’ hands.’“
Seyfarth Shaw is set to become the latest firm to flip its incoming associates the Bird. A very angry tipster reports:
[Seyfarth] just deferred all incoming associates to October 2010 with only $2000/month as a stipend beginning on our former start date of January 19, 2010! It’s a joke … we know for a fact that they were busy and could have afforded us. It is a firm managed by horrible, greedy, selfish individuals … This is amusing, in light of the fact that the firm turned a profit last year …
We would like to warn anyone considering accepting an offer from the firm to STAY AWAY!!!!!!!!!!!!!! It is particularly disconcerting for those of us who turned down offers from Biglaw in favor of a firm that apparently “cared soooo much” about us. Go Vault or go home.
Whoa, tell us what you really think. You have to wonder if these deferred incoming associates will come up with any fun banners about their would-be employer.
As angry as the deferred incoming associates appear to be, it is not at all clear that Seyfarth could have afforded to bring on a new class of people at this time. In addition to telling the incoming associates to wait for almost another year, today the firm announced that it was cutting first year associate salaries.
Details and a statement from Seyfarth, after the jump.
Continue reading “Seyfarth Shaw: Salary Cuts and Deferral Extensions, Oh My”
Here we are. The end of the Vault 100.
To be on the Vault 100 is to be a well-known firm. Sure, maybe not well-known to law students or junior associates who can’t see past the mountain of doc review boxes in their windowless conference rooms. But known to partners … and clients. Look down your nose at these firms if you wish, but remember the old African proverb: “The smallest elephant can still crush your Lexus.”
Here is the final batch of top law firms for discussion:
91. Stroock & Stroock & Lavan
92. Blank Rome
93. Seyfarth Shaw
94. Kramer Levin Naftalis & Frankel
95. Manatt Phelps & Phillips
96. Squire Sanders & Dempsey
97. Sheppard Mullin Richter & Hampton
98. Patterson Belknap Webb & Tyler
99. Wiley Rein
100. Mintz Levin Cohn Ferris Glovsky and Popeo
What say you about these fine firms? Some final thoughts after the jump.
Continue reading “Fall Recruiting Open Thread: Vault 91 – 100 (2010)”
Ed. note: This post has been revised in a number of important respects after it was published. As a result, many reader comments have been superseded, because they refer to parts of the post that have been edited or deleted. Please refresh your browser to read the latest version. Thank you.
Sarah Getchell is having a rough 2009. The University of Michigan grad was a first year at Seyfarth Shaw, until being laid off in May (perhaps as part of this bunch).
She found new employment at a small labor law firm, Lichten & Liss-Riordan. But then Seyfarth used her hiring to get the new firm removed from a case — not very nice.
Continue reading “Seyfarth Lays Off a First-Year Associate — Then Gets Her New Firm Kicked Off a Case”
While there seems to be some good news for rising 3Ls, there is more bad news for rising 2Ls. Seyfarth Shaw is the latest firm to cancel its 2010 summer program. Here’s the news from an email that went out to associates earlier today:
[T]he Executive Committee has made the decision to not host a summer associate program in 2010. By taking a break from hosting a summer program in 2010, it will allow us to effectively integrate those associates who already are set to start or participating in this year’s summer program. It also will help us get back on a more typical schedule of first-year hiring. This is not a decision to cease hiring from law schools, nor is it a decision to permanently cease a summer program. It is, however, a decision to pause for a year.
For people who have been paying attention to Seyfarth Shaw, today’s news isn’t all that surprising. More details after the jump.
Continue reading “Seyfarth Shaw Cancels 2010 Summer Program”
Seyfarth Shaw just announced an extensive “hybrid tough love” package. The firm is laying off employees as well as cutting salaries. It is also reducing the length of the summer program and pushing back start dates.
According to a firm wide memo, 50 people will be let go:
Today, we have completed a reduction in attorneys and staff of approximately 50 people out of approximately 1,600 people nationwide. These reductions are spread across all offices and practice groups. We deeply regret the need to take these steps. The people affected are our friends and co-workers who have made contributions to the growth of the Firm. We have reached out to every affected person prior to the distribution of this e-mail.
We cannot predict the future but, as we said above, it is our goal by taking this step to avoid any further reductions in positions for the remainder of the year. We know that we will be asking each of you to take on additional responsibilities. We thank you in advance for your continued efforts on behalf of our clients and the Firm.
Seyfarth laid off 30 people back in December, and another 30 people in January. Hopefully, this is the last time layoff survivors will have to worry about their jobs. At least for this year.
After the jump, we get to the other news.
Continue reading “Nationwide Layoff Watch: Seyfarth Shaw Cuts 50, Cuts Salaries, Cuts Back on Summer Program”
The 90′s were good to Billy Blanks of Tae Bo fame. His taekwando-boxing hybrid workout routine was all the rage across the land, with Paula Abdul a notable follower.
After his career peaked, the legal troubles started. In 1999, he filed a $10 million suit against his agent, because his agent wasn’t licensed to be an agent. And he hired Seyfarth Shaw to represent him. The case did not go well, and Blanks kick-boxed a malpractice suit Seyfarth’s way. One of Seyfarth’s L.A. partners, William Lancaster, bore the full brunt of Blanks’ aerobic fury, because Blanks alleged that he missed the statute of limitations by four weeks because Lancaster was dilly-dallying in the Superior Court system rather than taking his complaint to the labor commissioner, where it belonged.
The malpractice suit was decided in Blanks’ favor, and he was awarded $30 million. But the Second District Court of Appeals has reversed the judgment and remanded the case to the trial court.
Not without a cardio-kick to Seyfarth. From the Legal Pad:
[The] Second District Court of Appeal ruling that gave [Seyfarth] that dancing-with-joy moment wasn’t very kind to their law firm: It almost scoffed at their defenses to a celebrity’s claim of legal malpractice….
[Justice Richard Aldrich] had a warning for Seyfarth (and the trial judge) on remand. Aldrich speculated that Seyfarth will argue that Lancaster’s decision to delay filing a TAA petition was “a reasoned choice” or a “prudent trial strategy.” But he indicated that won’t be easy.
“Although attorneys have wide latitude in selecting strategy,” Aldrich wrote, “Seyfarth will have the burden to explain why its choice to delay filing a TAA petition was based upon a rational, professional judgment that would have been made by other reputable attorneys in the community under the same or substantially similar circumstances.”
Billy Blanks is giving Seyfarth quite the work-out.
Seyfarth off Hook for $30 Million Award — for Now [Legal Pad]
Court Throws Out $30 Million Legal Malpractice Award [Metropolitan News-Enterprise]
Second District Court of Appeal Ruling
In December, Seyfarth Shaw laid off 30 attorneys. Today, the wheel came around to a number of staff:
As a result, we have made the very difficult decision to reduce the number of support staff positions in a limited number of offices, including ours. In Chicago, this has affected nine secretaries and five members of local department staff. A total of approximately 25 employees have been affected across the Firm.
A tipster reports:
Old ladies and people with 10+ years experience.
Read the full Seyfarth memo after the jump.
Continue reading “Nationwide Staff Layoff Watch: Seyfarth Shaw”
The latest layoff news comes from Seyfarth Shaw. The firm’s Executive Committee sent around a firm-wide email this morning:
As part of our planning for 2009, we have reviewed our staffing in light of market conditions and expected client needs — for now and for the coming year. While we continue to anticipate a solid 2008, we believe there is a need to exercise prudent business judgment and respond to what economists predict will be a continued challenging economic climate in the year ahead.
One of the decisions we have made has been to reduce legal headcount by approximately 30 attorneys and other time keepers across our offices. We believe this is the best course of action for the Firm in light the economic downturn. These are very difficult decisions to make and, we know, hard news to learn.
It’s another classy letter that sends a clear signal to the legal community that former-Seyfarth associates were let go only because of the terrible economic climate that is hurting everyone.
As we understand it, the firm cuts hit the New York, Chicago, Atlanta, and Boston offices.
We don’t know if this will have any impact on the long standing rumor of a merger between Seyfarth Shaw and Squire Sanders. But Seyfarth’s decision comes just two weeks after Squire Sanders announced layoffs of … 30 attorneys. Make of that what you will.
Read the full Seyfarth Shaw announcement after the jump.
Continue reading “Nationwide Layoff Watch: Seyfarth Shaw Lays Off 30 Attorneys”
Here is yet another rumor — somewhat better sourced than the Thacher Proffitt / King & Spalding rumor, but a rumor nonetheless — about a possible law firm merger.
Word on the street is that Seyfarth Shaw is seeking a merger partner. This should not come as a shock, since Seyfarth has been stumbling a bit due to the downturn. As previously reported, the firm has pushed back start dates and trimmed its lawyer ranks.
The Seyfarth partnership recently returned from its retreat, where strategic opportunities were discussed. The scuttlebutt is that the firm is in “serious” merger talks with another firm of roughly equal size. Upon information and belief, that firm is Squire Sanders.
Both firms hover around the 800-attorney mark. The product of their merger — nicknamed “S4″ by one tipster, standing for either “Seyfarth Shaw Squire Sanders” or “Squire Sanders Seyfarth Shaw” — would be a 1600-lawyer behemoth. The combination would give Seyfarth a coveted foothold in Bratislava.
Associate meetings were held in all Seyfarth Shaw offices earlier this afternoon. Associates were briefed on the retreat and told about ongoing merger talks with another firm. Details are scarce; the confidential nature of the merger talks was stressed to the associates “about a dozen times.”
Whether these talks will bear fruit is anyone’s guess. Lately law-firm merger talks have been falling at a high rate.
We’ll keep you posted. If you have any info to share, please email us. Thanks.
We’re a little late in passing along this news, which is from last month. But when it comes to coverage of certain topics, like start dates and layoffs, we aim for completeness.
An article in Crain’s Chicago Business focuses on delayed start dates at major law firms in the Windy City. Most of the news in the piece was previously broken by ATL. See, e.g., Seyfarth Shaw; DLA Piper.
But there’s one nugget of news:
With starting attorney salaries reaching $160,000 a year, delaying new-hire dates is one way to trim expenses. Sonnenschein Nath & Rosenthal LLP, which has 186 attorneys in Chicago and a substantial real estate practice, pushed back starting dates for seven lawyers by two months, to mid-November, a spokeswoman says.
So add Sonnenschein to the list of firms that have delayed start dates for incoming associates. Just like no-offering summer associates, pushing back starting dates is less than ideal. But as we wondered on Friday, such measures may be the lesser of multiple evils (with lawyer layoffs as a greater evil — although some firms have done both).
P.S. Lee Miller might want to coordinate better with his public-relations team. The DLA Piper PR folks previously explained that the change in start dates was made “to provide a uniform start date across all our offices… [and] to have a uniform orientation process.” But Miller tells Crain’s that it’s the economy, stupid:
“Any firm that isn’t careful in this economy is nuts,” says Lee Miller, joint CEO of DLA, Chicago’s eighth-biggest law firm. Mr. Miller says the firm also plans to cut next summer’s recruiting class by as much as one-fifth. “The transactional practices are slower, mirroring the economy, and the capital markets are in turbulent times,” he says.
P.P.S. Today, of course, is Labor Day. Is anyone reading?
Update / Correction: The Sonnenschein start date news was first reported by Bloomberg News on August 5, in a very interesting article on partner pay. As Lindsay Fortado reported, the firm pushed back start dates for 20 of its 24 incoming first-year associates from September to November 15. (The seven lawyers referenced in the Crain’s article appear to be Chicago associates; the firm-wide number appears to be 20.)
Tougher times on the docket [Crain's Chicago Business]
Wall Street Lawyers Ask Bank, Can You Spare $250,000? [Bloomberg News]
