* Funny that SCOTUS just struck down a law imposing a 35-foot buffer zone around abortion clinics, yet it heavily enforces its own buffer zone. Some call it “supreme irony.” [WSJ Law Blog]
* Despite the slacking demand for legal services — down by 8.8 percent in terms of billable hours — members of the Am Law 100 still managed to keep their heads above water. [Am Law Daily]
* Lorin Reisner, chief of the criminal division of S.D.N.Y.’s USAO and Preet Bharara’s right-hand man on Wall Street convictions, is leaving for greener pastures at Paul Weiss. Congrats! [Reuters]
* New York State’s highest court has rejected New York City’s ban on gigantic drinks that was previously proposed by Mayor Michael Bloomberg. Go on, have yourself a nice Quadruple Big Gulp. [Bloomberg]
* When the long arm of the law flushes the toilet, it sometimes explodes, raining down jagged shards of justice. But on a more serious note, we’re happy no one was hurt at this courthouse. [Billings Gazette]
As The Economist concisely explains, a verein is “a Swiss partnership that lets [law firms] maintain separate national or regional profit pools under a single brand.” For purposes of preparing its influential Am Law 100 rankings, the American Lawyer treats a verein as a single firm — a decision that some at non-verein firms object to.
Let’s hear some of the complaints — and then, interestingly enough, a defense of the vereins’ financial performance in 2013, which might have been better than Am Law suggested….
Plug two: I’ll be back in the States for a few weeks in June, and I’m taking advantage of that opportunity to give my “book talk” about The Curmudgeon’s Guide to Practicing Law at three “Vault 50” firms. So long as I’ve dusted off the notes to give those three talks, I might as well speak at your firm, too, Please let me know if you’re interested.
Finally, some crystal-ball-gazing: I’ve been picking for years on the fictitious law firm of Bigg & Mediocre. For good reason: To my eye, a fair number of firms have decided that adding more offices and lawyers is the cure to all that ails them and that relentlessly focusing on quality is a failed strategy of the past.
Recent empirical evidence now suggests that I may actually have a point. The Am Law profitability ratings for last year show that the super-rich firms are getting richer, and the run-of-the-mill big firms are doing okay. But one group is getting crushed, seeing substantial decreases in both revenue per lawyer and profits per partner: what Am Law calls “the giant alternatives” or the “vereins.”
My mental category of “big and mediocre” doesn’t match Am Law’s “giant verein” group. To my eye, a few of the global giants have managed to pursue both size and quality. But several have not. (I can’t say publicly which firms I would place in which category, because my employer is the world’s leading insurance broker for law firms, and I can’t go around offending the clients and potential clients. Let me just say that your firm is great. Not just great — stupendous! But the other guy’s firm? Not so much.)
So “big and mediocre” got its clock cleaned last year. I’m predicting that big and mediocre will get its clock increasingly cleaned over time, and within a couple of decades, will suffer the fate of the sundial.
The book that everyone’s talking about right now is Capital in the Twenty-First Century by French economist Thomas Piketty. In his bestselling, critically acclaimed, 600-page tome, Piketty documents and diagnoses the growth of income inequality in the United States and around the world.
What’s true for the global economy seems to be true for law firms as well. As we mentioned in Morning Docket, the American Lawyer just released the latest Am Law 100 rankings, the biggest rankings in the world of Biglaw. Here’s the key takeaway, captured in the magazine’s headline: “The Super Rich Get Richer.”
How rich are the “Super Rich” these days? Let’s peek at those profits per partner….
* Meow! Last week, in a rare move, Justice Sonia Sotomayor let the world see that she’s not exactly the best of friends with Chief Justice John Roberts through her fiery dissent in the Schuette affirmative action case. [National Law Journal]
* The Am Law 100 law firm rankings are out, and 2013 is being described as a “middling” year for most Biglaw firms. On the bright side, it looks like the big and rich got even bigger and richer. We’ll have more on this later. [American Lawyer]
* Secrets, secrets are no fun: The search for a new dean is on at George Washington University Law, but professors say they were “sworn to secrecy” on the candidates who’ve visited campus. [GW Hatchet]
* “It’s not about me getting the money; it’s about showing the NFL you can’t do this.” Ex-Vikings punter Chris Kluwe may sue the team after being cut for expressing positive views on gay marriage. [NBC Sports]
* Donald Sterling’s wife ain’t sayin’ V. Stiviano is a gold digger — she’s alleging V. Stiviano is a gold digger. This, plus the accusations of racism against Sterling, is a flagrant foul. [L.A. Now / Los Angeles Times]
As we noted in Morning Docket, there’s a new survey out about corporate America’s legal spending in 2013. As noted by Am Law Daily, the LegalView Index “is based on actual dollars paid by clients, not on surveys of law firms” — so perhaps it’s more reliable than many of the other studies.
What does the survey say? Here are some highlights:
I’ve just celebrated my fourth anniversary working in-house, and I’m now officially out of touch with law firm life.
I thought I knew all the law-firm-partnership tricks. For example, when law students ask at interviews what percentage of firm partners hold equity status, some firms answer: “At this firm, all partners are partners.” That’s true, of course, but tautological; it says nothing about the equity and non-equity ranks.
On the other hand, this non-responsive answer serves a useful purpose. It may help to convince law students (or lateral associates) that they have a real chance at making partner at the firm, even though the equity partnership ranks are tiny and getting thinner every day.
But I recently learned about a new game that law firms play. This one is aimed not at deceiving law students or lateral associates, but rather the granddaddy of law firm rankings: The American Lawyer’s profits per partner calculation.
I thought I knew all the ways law firms could try to mislead The American Lawyer. There’s the possibility of outright lying, of course, and then there’s using funky methodologies that inflate profits per partner from $1 million to $1.8 million for the year 2011. But there’s a new game in town. It may well be widespread, but I heard about it only recently….
Good news: According to the Citi Private Bank Law Firm Group (and its partner, the Hildebrandt Institute), firms are looking at nice, steady profit growth in the coming year. It’s not super, but who can be choosy in the current market? And partially driving this growth is an expected uptick in demand, so that’s good.
Bad news: While the media latched on to the favorable demand projection, the report expects firms to be more profitable because they are finally taking Citi’s advice on how to become more profitable — and that doesn’t bode well for rank-and-file attorneys.
* Barack Obama is trailing George W. Bush when it comes to leaving his mark on the federal courts, but that’s probably because Senate Democrats didn’t go nuclear quickly enough. [Blog of Legal Times]
* When it comes to 2013, one thing’s for sure: it wasn’t boring. Many of this year’s movers and shakers hailed from top Am Law 100 law firms — like Ted Cruz (formerly of Morgan Lewis). [American Lawyer]
* John Ray III isn’t going to sit back and allow a jury to shut down his discrimination and retaliation case against Ropes & Gray. He filed a notice of appeal last week, and he’s pissed off. [National Law Journal]
* Utah has until the end of January to figure out how it’s going to go about defending its same-sex marriage ban before the Tenth Circuit. Just a thought: the “it’s still gay, even if the balls don’t touch” theory of law isn’t going to cut it. [Deseret News]
* A lawyer for the Texas judge accused of strangling his girlfriend is offering media outlets a superb defense story on behalf of his client. He wasn’t trying to kill her, he was trying to save her! [New York Daily News]
As noted in Morning Docket, Citi’s quarterly review of the financial landscape facing law firms just came out. The surface level verdict is — as it has been for some time — slow and steady, with a bunch of red flags.
The firms are happy to see positive revenue growth, even if it’s only 2.7 percent. I mean, other industries aren’t so lucky. But when the industry is a few years into the “New Normal” and analysts are still pointing to the same failings, it’s hard to feel too optimistic.
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 seven years. You can reach them by email: firstname.lastname@example.org.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at email@example.com or firstname.lastname@example.org. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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