The court will not countenance the gross overreaching evidenced under the facts and circumstances of this case in which the client is not even being billed for legal services. To move any court to put its imprimatur of approval on such practices is simply intolerable.
– Judge Frank Nervo, denying a Biglaw firm’s request for more than $126,000 in attorneys’ fees in a lawsuit over a $6,400 security deposit. Judge Nervo added that the firm spent “a grossly unnecessary amount of time” on simple tasks, including “research on the most basic and banal legal principles.”
(Which firm was on the receiving end of this benchslap? Find out after the jump, where we’ve posted the full opinion.)
Biglaw competition is getting intense. Everyone is chasing the same clients, while also deploying rearguard actions to protect institutional clients from being poached. Forget about lateral partners taking clients for a moment. I am talking about overt approaches from competing firms regarding existing matters, bearing promises of handling things more cheaply and more efficiently. In-house lawyers, under pressure to contain costs, almost have to listen. They may not act right away, but with each such approach another dent has been made in the Biglaw client-maintenance bumper.
It is no secret that in the face of declining overall demand (especially for the profit-pumping activities like mega-document reviews that were Biglaw’s joy to perform in the past), firms need to aggressively protect market share. While also seeking to grow market share. In an environment where more and more large clients are either (1) reducing the number of firms that they are willing to assign work to or (2) embracing an approach that finds no beauty contest too distasteful to engage in. So partners, at least those tasked with finding work for everyone to do, are falling back on a tried-and-true “sales approach” — putting things on sale.
* To those of you who celebrate it, Happy Easter! Welcome the holiday by voting in the ABA Journal’s fifth annual “Peeps in Law” contest. [ABA Journal]
* If law firm brackets aren’t your thing, check out Professor Kyle Graham’s brackets for (1) law school classes and (2) law blogs. I’m thankful for ATL’s #1 seed but terrified by who we’re up against (because they’ve ripped me a new one before). [noncuratlex]
* Sorry, Judge Steiner, you wuz robbed; you should have been our Judge of the Day. It’s tough to top “allegations of a sexual quid pro quo with a female lawyer and the eye-opening confiscation of carpet from [chambers] for forensic analysis.” [OC Weekly]
First, some random thoughts on the legal news of the week:
1) Who gives two ***** if gay folks get married? Or have the same rights as you and me? My goodness, if two people want to get married, God Bless them! And it is a civil rights issue; being told that you can’t have information on your partner’s hospital stay because of HIPAA is downright medieval. The pastor whose YouTube speech went viral after reading from anti-desegregation literature and turning it into an anti-gay marriage diatribe was probably the most brilliant argument in defense of gay marriage. Twenty years from now we’ll be saying: “Gay marriage? Meh, it’s really those damned ______ that we have to watch out for…” Hey, it’s America, **** yeah!!, every group gets a turn at being the downtrodden.
2) Don’t get me started on North Dakota’s draconian steps with regard to a woman’s right to choose what to do with her own body. Now see, it’s Holy Week and I probably can’t take communion.
3) This DLA Piper billing debacle? Makes me sick, and is a perfect segue into finishing my column from last week. I know I know, DLA came out and said, “Heh heh, we were just kidding. Those guys aren’t even around here anymore. Overbilling? Meh. Never happened, we promise.” What did you expect them to say?
I happen to know personally one of those mentioned in the story, and he was just as much a dim bulb back then, so it is no surprise that he wrote that stuff in an email. That he moved on to a partnership at another firm is no surprise either. I will say that he is infamous for leaving one of the funniest and most outrageous drunk emails voicemails on a colleague’s phone early one morning. And he probably can’t figure out who he is from this blind item in any event. But, I digress, back to overbilling…
It is common knowledge around ATL that I am a huge proponent of the Association of Corporate Counsel (“ACC”). I have served on their boards, presented at their seminars and annual meetings, and generally participated as much as my time allows. Now, truthfully, this amount of participation has gotten me to Orlando, Los Angeles and New Orleans; all absolutely necessary trips, I swear. But there is another side to ACC than just fantastically run and organized events and parties, and that other side is advocacy on the part of business, and specifically in-house business.
Lat sent me a press release this week focused on an amicus letter that ACC sent to the S.D.N.Y. regarding the plaintiffs’ attorney fees request in In re Citigroup Securities Litigation, Case No. 1:07-cv-09901-SHS. After reading the letter and doing some research on my own, I came to the conclusion (yet again) that I have missed the boat by not practicing plaintiff-side law. These folks are asking with straight faces for what seem to be exorbitant and outrageous fees. Specific to this post and the ACC letter, they argue that contract attorney time (such attorneys normally make modest hourly wages) should be calculated at Biglaw associate hourly rates in order for the judge to arrive at a fee award. To put on my elite intellectual vocabulary hat for a moment, this is crazy talk…
* Wait, are we really going to have to debate the legal merits of this platinum coin thing? Really? Can’t Congress just not hold the country hostage so we don’t have to start messing around with crazy coins and the Fourteenth Amendment? Like, you don’t have to start doing bats**t crazy Carrie Mathison things if you don’t let terrorists take Nicholas Brody in the first place. [The Volokh Conspiracy]
* There was another school shooting today. It just makes you wonder if the terrible reign ushered in by Grand Theft Auto will ever end. At least, in this case, the teacher was armed to the teeth WITH WORDS to TALK DOWN the shooter. [Huffington Post]
* “Illegal” trades don’t mean the same thing to bankers as they do to everybody else. Well, that’s not true. Maybe the disconnect is more with the word “consequences.” [Dealbreaker]
* Yeah, I’m going to go on and say that I’m not going to believe anything coming out of the Trayvon Martin police report. Just like I wasn’t considering anything coming out of racist ass Mark Fuhrman. [Tampa Bay Times]
* There’s a lot to lose if Section 5 of the Voting Rights Act gets struck down. [Slate]
* I suppose it’s good that lawyers don’t have “I’m going to do a half-assed job here” fees. [Underdog]
Before I provide some advice on client relations that will be deemed “totally wrong” by some and “good advice” by me pretending to be anonymous, I wanted you all to know that I bought a wireless printer that allows me to send documents from my phone, wherever I am, to my printer at my office. Although I currently have no use for this feature in my law practice, and haven’t in 17 years, I hope this puts me in better stead with those of you that think I hate tech.
Now let’s talk about clients, for those of you that have some.
The core of running a practice is machines and toys clients. That you are able to do competent work for clients doesn’t matter if you are not versed in the retaining and retention of them. The retention of any client starts at the initial contact, not when they come to your coffee shop office with a check. For those of you who have practices where you never meet with clients, your initial contact with them (unless it’s them using your website as an ATM to buy documents) is even more important.
While you may be in a position where the client is only calling you, most clients are calling several lawyers. Regardless, you are now auditioning for the job. That audition begins at the very moment you first speak to the client, or the person calling for the client….
It has been a few days since our last detailed story about the largest law firm bankruptcy in history. So let’s check in on the Chapter 11 proceedings of Dewey & LeBoeuf, currently pending in bankruptcy court for the Southern District of New York.
There have been a few recent developments. For example, as we mentioned in Morning Docket, Dewey is being counseled in bankruptcy by some pretty pricey advisers.
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
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