Becker & Poliakoff

As clear as I can tell, Becker & Poliakoff lawyer and out-homophobe Walter Kubitz, author of the now-infamous “gay plague of AIDS” email, still has a job. I’m not at all sure why. Becker & Poliakoff keeps saying that such divisive views about gays and lesbians do not reflect the firm’s “core values” and will not be tolerated… AND YET the firm clearly values Kubitz enough that he is still being tolerated by the firm.

Is Kubitz just a fantastic attorney that Becker can’t afford to lose? The man has been working for 30 years and still hasn’t made “shareholder” at the firm, so I don’t think he can be SO good that the firm just can’t do without him. What kind of power does this guy have? Jesus, does Kubitz have photos of Becker shareholders getting gay with Santa Claus? Maybe firm management doesn’t understand that pictures of them getting busy with each other at a firm retreat would be CONSIDERABLY LESS DAMAGING to the firm’s reputation than continuing to employ such a proud homophobe.

Becker just put up a statement on their website about the Kubitz situation. The statement doesn’t actually say what Kubitz did, doesn’t contain an apology from Kubitz, and hides behind religious toleration rhetoric when that’s not even the point of what happened here. Let’s give it a close read….

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As an openly gay attorney at Becker & Poliakoff for over nine years, I know that the email sent by this attorney does not reflect the core values of this firm. In fact, Becker & Poliakoff is committed to diversity as reflected by the firm’s hiring practices, outreach and diversity scholarships awarded annually.

Michael Gongora, a shareholder at Becker & Poliakoff, explaining how outreach and scholarships might help future Becker lawyers learn where AIDS comes from. The firm says it has taken “immediate and severe” action against Walter Kubitz in light of his homophobic firm-wide email, but still refuses to announce the nature of the action. Kubitz’s profile is still up on the firm website, so I’m wondering if Becker management understands what “immediate and severe” even means.

The last few years have helped me get very used to the passive-aggressive bigotry that homophobes still think they can get away with. “Just believing” that marriage is between a man and a woman conveniently leaves out the stunning antipathy to gay love and civil rights… but it doesn’t sound as “hateful” as it is. And the idea that gay marriage can somehow threaten straight marriages sounds more stupid than bigoted, even though it’s both.

Don’t get me wrong, you don’t have to search very long for harsh anti-gay rhetoric. But in the refreshingly genteel environment of educated society, old-school, anti-gay hate speech comes off as particularly harsh.

Old-school, anti-gay hate speech captured over law firm email is downright surprising given the current environment. But then again, bigoted statements that a senior lawyer sent out to all attorneys at a law firm come back all the way around to “incredibly stupid.”

I guess what I’m trying to say is that this stupid, bigoted, dumbass, hate-filled, verbal feces slathered all over law firm email is… quaint.

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Lana Landis: Give her all your money.

* It’s Alito time, bitch! If you were wondering about any of the cases in which the justice recused himself last year, his latest financial disclosure report is quite telling. [Blog of Legal Times]

* Yet another appellate court has ruled that Obama’s recess appointments to the NLRB were unconstitutional. Alright, we get it, just wait for the Supreme Court to rule. [TPM LiveWire]

* Hey baby, nice package: With stock awards soaring, general counsel at some of the world’s largest companies had a great year in 2012 in terms of compensation. [Corporate Counsel]

* NYU professors want Martin Lipton of Wachtell Lipton to swallow a poison pill and step down from the school’s board of trustees over his ties to the University’s unpopular president. [Am Law Daily]

* Now that they’ve stopped acting like the doll they were arguing about in court, MGA has put aside its differences with Orrick to amicably settle a fee dispute in the Bratz case. [National Law Journal]

* Who needs to go on a post-bar vacation when you can take a vacation while you’re studying for the bar? This is apparently a trend right now among recent law school graduates. Lucky! [New York Times]

* A man puts assets into his pin-up wife’s name on advice of counsel, she files for divorce, and the firm allegedly takes her as a client. This obviously happened in Florida. [Daily Business Review (sub. req.)]

* David Schubert, the deputy DA who prosecuted Paris Hilton and Bruno Mars, RIP. [Las Vegas Sun]

One firm just started pocketing 20 percent of partner pay.

Many lessons can be drawn from the collapse of Dewey & LeBoeuf. We’ve learned, for example, that it’s dangerous to have a law firm name that’s highly susceptible to puns. (Dewey know why that is? Howrey going to find out? Heller if I know.)

Another lesson: avoid excessive dependence upon bank financing. When a firm starts to spiral downwards, that spiraling can be accelerated by a bank calling a loan, not renewing a credit facility, or otherwise taking steps to protect itself that, while reasonable for the bank, can be damaging to the firm.

Firms have responded by turning to their partners for more financing. An increasing number of firms are issuing capital calls to partners or requiring high capital contributions.

So perhaps we shouldn’t be surprised to learn that one law firm has instituted a new policy of withholding 20 percent of partner pay….

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Lauren Giddings

* You think you know Justice Clarence Thomas, but you have no idea. Here are several myths about the silent Supreme Court star that he was capable of busting in just this term alone. [WSJ Law Blog (sub. req.)]

* According to the CBO, the immigration reform bill being considered in the Senate would allow eight million immigrants to gain legal status and lower the deficit by billions. But alas, dey still terk er jerbs! [NPR]

* Google is doing its best to try not to be evil by asking the FISA court to ease up on gag orders preventing the internet giant from telling the world about what it’s required to give to the government. [Washington Post]

* Florida firm Becker & Poliakoff will withhold 20% of equity partners’ pay, a move that made some lawyers cry. The firm is apparently planning to save the cash for a rainy day. [Daily Business Review]

* Paul Mannina, an attorney with the Labor Department charged with sexually assaulting a coworker, was found in his cell with his throat slashed. Police are investigating the death. [Washington Post]

* FYI, your aspirational pro bono hours — or complete and utter lack thereof — will now be public record in New York, and you must report them on your biannual registration forms. [New York Law Journal]

* Coming soon to a law school near you: really old books from the 13th century that’ll probably turn into dust if you dare try to read them. You can find this nerdgasm over at Yale Law. [National Law Journal]

* The family of Lauren Giddings, the slain Mercer Law graduate, has filed a $5 million wrongful death suit in federal court against accused killer Stephen McDaniel in the hopes of finding her remains. [Telegraph]

Not so fast, Canellas…

* Yeah, about that huge bonus we were going to pay our ex-finance director — we realized how silly that was, so we’re not going to do that. Aww, don’t worry, Dewey & LeBoeuf, you’ll have plenty of other chances to look absurd. [Am Law Daily]

* Not only is Samsung suing Apple for patent infringement, but the company is also trying to get a do over by getting Judge Lucy Koh to throw out the original billion-dollar verdict over jury foreman Velvin Hogan’s alleged misconduct. [Bloomberg]

* “Small deals are easier to swallow, easier to integrate.” Regional firms like Carlton Fields and Adams and Reese are gobbling up smaller firms in what seems to be the latest trend in law firm merger mania activity. [Thomson Reuters News & Insight]

* Douglas Arntsen, the former Crowell & Moring associate who had to be extradited from Hong Kong after embezzling $10.7M from clients, pleaded guilty in exchange for a lesser sentence. [New York Law Journal]

* It’s tough to come up with appropriate whistleblower jokes given the background here. We’ll play it straight: Mike McQueary filed a defamation suit against Penn State, and he’s seeking $4M in damages. [ABC News]

* Jose Godinez-Samperio, an undocumented immigrant, is fighting for the ability to practice law in Florida, but the members of the state Supreme Court are literally trying to make it into a “federal case.” [Washington Post]

The Dewey & LeBoeuf drama continues to unfold. As we mentioned in Morning Docket, there have been a few notable recent developments. Citibank just filed a vigorous response to allegations by Steven Otillar, a former Dewey partner, that Citi colluded with Dewey to take advantage of individual partners. Meanwhile, three former leaders of the firm — former chairman Steven Davis, former executive director Stephen DiCarmine, and former CFO Joel Sanders — have filed objections to the global settlement with former partners.

It’s not a pretty picture. And here’s what we’re wondering: Could it happen to another major law firm, sometime in the next twelve months?

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As we mentioned in the Labor Day edition of Morning Docket, there’s some interesting news on the Dewey & LeBoeuf front. The one former Dewey partner being sued by Citibank for allegedly defaulting on a capital loan — energy lawyer Steven Otillar, now a partner in the Houston office of Akin Gump — is opposing Citi’s attempt to collect on the debt, by arguing that he was “fraudulently induced” to borrow the money in question.

How much are we talking about? How does the debt compare to Otillar’s compensation while at Dewey? And what are Otillar’s specific allegations about “fraudulent inducement”?

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