Bankruptcy

Like a GM automobile, claims against the company arising from its faulty ignition switches might unexpectedly stop working.

While GM is talking a big game about compensating those who suffered damages due to the company’s defective cars, GM’s definition of “damages” is cleverly designed to save the company billions.

As you might remember, GM filed for bankruptcy about five years ago. “Old GM” sold all of its valuable assets to “New GM” — which was a federally backed company. All of Old GM’s bad assets and liabilities were handled through the chapter 11 bankruptcy process. In simplified terms, that means that anybody who had a beef with Old GM needed to settle their business with the company in 2009.

That’s bad news for some people who bought faulty GM cars.

Continue Reading on Above the Law Redline…

* The SCOTUS decision in the Pom Wonderful case could have serious repercussions in terms of deceptive labeling litigation under the Lanham Act. Even Justice Kennedy was misled! [Huffington Post]

* Dewey know when to WARN people? This failed firm apparently didn’t, and now it has to pay a $4.5 million class-action settlement to the employees it laid off without adequate notice. [WSJ Law Blog]

* After getting bumped out of the Am Law 100 after a 17-year run, Shook Hardy & Bacon is letting go of three floors of office space it “no longer needs.” Secretaries Paper takes up a lot of room! [Am Law Daily]

* Minutes after this career criminal was released from jail due to his accidental acquittal, he was stabbed to death with a steak knife. But for the jury’s crazy mistake, he would still be alive. Yikes. [Fresno Bee]

* LMU’s Duncan Law, perhaps better known as the little law school that couldn’t, is still trying to get ABA accreditation. At least this time they’ll be able to use law schools’ national decline as a scapegoat. [WBIR]

* In defense of its PPP metric, the editor-in-chief of the American Lawyer revealed a shocking statistic about Dentons: the firm’s PPP was likely down about 20 percent year over year. [Am Law Daily]

* A judge dismissed many of defunct firm Heller Erhman’s remaining unfinished business claims in the case against its former partners. Dewey know some partners who are thrilled? [WSJ Law Blog]

* From 2012 to 2013, NLJ 350 firms saw the rise of “other” attorneys — staff attorneys, of counsel, and lawyers who were neither associates nor partners. We’re living in lean times. [National Law Journal]

* “No one predicted there would be this kind of huge drop in applications.” Apparently law school deans thought prospective students would be thrilled about their lack of job prospects. [Hartford Business Journal]

* Shelly Sterling has asked a judge to rule that she can sell the Los Angeles Clippers over her husband Donald Sterling’s protests. We’re very eagerly awaiting their impending divorce train wreck. [Bloomberg]

Puff, puff, pass those voter initiatives.

* This failed firm’s drama is the Biglaw gift that keeps on giving: Dewey & LeBoeuf’s bankruptcy trustee filed an amended complaint against Steve DiCarmine and Joel Sanders seeking the return of more than $21.8 million. [WSJ Law Blog]

* Norton Rose Fulbright elected someone who “love, love, love[s] the law firm” as U.S. managing partner, and she’s the first woman to ever serve as U.S. chair of its management committee. We love, love, love this news! [National Law Journal]

* According to a California judge, tenure laws are unconstitutional and are depriving students of the high quality of education they deserve. The end is nigh, law professors. Enjoy it while it lasts. [New York Times]

* Not all states have legalized the recreational use of marijuana, but it’d be a lot cooler if they did. The tide is turning across the United States, and we’ll soon see which states’ drug laws go up in smoke. [Slate]

* “Document review attorneys are in demand now but the demand will gradually decrease.” Sorry to be the bearer of bad news, but the one job you were able to get soon won’t need or want you. [InsideCounsel]

Would you wear these to court?

* Hmm, somebody didn’t review those documents quickly enough: the City of Detroit’s bankruptcy trial has been delayed for about a month’s time by Judge Steven Rhodes because the parties needed additional time to get their acts together. [Bloomberg]

* The NCAA may have lost the battle in the Keller EA Sports video games case with its $20 million settlement offer, but it’s clearly out for blood to win the war in the O’Bannon case with its tough cross-examination tactics for the lead plaintiff. [USA Today]

* GW Law, a school that recently increased its class size by 22 percent and allowed its average LSAT score to slip by two points, yoinked its new dean right out from under Wake Forest’s nose. [GW Hatchet]

* The legal profession isn’t exactly diverse, and law schools want to change that — the more pictures of “diverse” students they can display on their websites, the better. [Law Admissions Lowdown / U.S. News]

* Who really cares what prospective jurors wear when they show up for jury duty? The lawyers arguing that being turned away for wearing sneakers affected their clients’ rights in a case, that’s who. [WSJ Law Blog]

Fighting over the Lawyerly Lair.

Law firms are relatively secretive institutions. Since they’re not public companies — at least not here in the United States, in the year 2014 — they aren’t required to reveal that much about their internal workings. Here at Above the Law, we do what we can to shed light on how law firms work, but there’s only so much we can do.

Every now and then, public filings disclose information about law firm operations — including information about one of the most sensitive subjects, partner pay. Sometimes we learn about partner compensation when a partner files for bankruptcy. Sometimes we hear about it when a partner goes through an ugly divorce.

That’s once again the case today. A complicated divorce, complicated enough to spawn ancillary litigation in the form of contempt proceedings, sheds light on how one white-shoe law firm pays its partners….

double red triangle arrows Continue reading “A Messy Divorce Offers An Inside Look At Biglaw Partner Pay”

Mindy Kaling

* Barnes & Thornburg’s managing partner is planning to step down after almost two decades in the firm’s top leadership role. His tenure ends on a high note: 2013′s gross revenue was up by 12% and PPP was up by 8.2%. [Am Law Daily]

* “To terminate Jones Day at that point is an incredibly bad idea. I hope the mayor hears me.” Judge Steven Rhodes politely called Detroit’s mayor a moron after the city official declared he’d fire Jones Day in September. [Detroit Free Press]

* “When you’re giving anything to a judge, you try to be careful about it.” In 2012, law schools paid federal judges almost $2M to teach and lecture. A useful way to spend tuition dollars? [National Law Journal]

* San Diego Law School, a branch of San Francisco Law School, is open for business. It’s being marketed as a “fresh start” — if you failed out at another law school, come join the party here! [Daily Transcript]

* If you weren’t aware, Mindy Kaling gave a commencement speech at Harvard Law this week. She praised the graduates’ dedication to tedium, and kindly reminded some that they were truly evil. [Boston.com]

* Congrats to Diane Humetewa, the first Native American woman to serve as a federal judge in United States history. You’d think this achievement would’ve already been reached. [Arizona Daily Star]

* When your case is compared to a law school exam, and the judge uses the number “bazillion” to describe the problems that could happen, it sucks to be you, Detroit. [DealBook / New York Times]

* Dewey know when this failed firm actually went belly up? It’s liquidating trustee says D&L was insolvent in 2009, and wants $22.5 million from ex-international partners in his latest clawback suits. [Am Law Daily]

* The managing partner of Seyfarth Shaw refers to his firm as the “Costco of corporate legal services” because it’s a place where you can “get more for less.” What’s the membership fee? [Chicago Tribune]

* The Buffalo Bills filed a motion to dismiss the wage and hour suit put forth by the disgruntled members of its cheerleading squad, the Buffalo Jills. You better hope that motion survives the “jiggle test.” [CBS Sports]

Oscar Pistorius

* Lawyers for Jones Day got a light spanking in court after sending out some of Detroit’s confidential negotiation documents to its creditors. Quick, blame the doc reviewers. Oh wait, you already did. Nice work. [WSJ Law Blog]

* Cynthia Brim, the judge declared “legally insane” who collected a $182K salary for months without working, was booted from the Illinois bench. She’s the first member of the state judiciary to be removed in a decade. [Chicago Tribune]

* Massachusetts is instituting a $30,000 pay hike for state judges which will prime the pump for pension bumps and retirements. For the love of God, think of the poor ADAs next time, Massholes. [Boston Globe]

* The power of diagramming compels you! If you’re studying for the LSAT, here are tricks you can use when trying to exorcise the demons from the logic games section. [Law Admissions Lowdown / U.S. News]

* Prosecutors want Oscar Pistorius to undergo a psychiatric evaluation in order to urge the court to consider an insanity defense, even though Bladerunner’s legal team doesn’t intend to mount one. [CNN]

A Supreme cat fight?

* Footnote fight! Justice Sonia Sotomayor has been clashing with quite a few of her fellow Supreme Court jurists lately, aside from Chief Justice John Roberts. She recently inspired the wrath of Justice RBG herself. [New York Times]

* After months of being poked and prodded for cash, 60 former Howrey equity partners have reached clawback deals with bankruptcy trustee Allan Diamond, and it looks like a few of them agreed to pay pretty hefty sums. [Am Law Daily]

* Here’s a headline we could’ve told you was coming: “The US lawyer bubble has conclusively popped.” It’s not a terribly good decision to attend now, but if you do, people who can’t pay you need your help. [Quartz]

* Cutting law school tuition may be a good idea to attract more students, but in the long run, it could hurt the schools, says Moody’s. Aww, let us shed some tears for those poor law schools. [WSJ Law Blog]

* Crim Law prof not guilty of… crime. Stephen Smith of Notre Dame Law was acquitted on a misdemeanor invasion of privacy charge, and the felony battery charge he faced was dismissed. [South Bend Tribune]

* The University of Arizona will be the first school in the U.S. to offer a bachelor’s degree in law. The degree is being marketed to people who eventually want to have lots of law-related debt. [National Law Journal]

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