We recently wrote about various developments at Dewey & LeBoeuf. There have been reports of the firm having some financial issues, and there have been some notable partner departures as well. Sources we’ve heard from at Dewey feel significant anxiety right now about the direction of the firm.
Let’s hear about the latest partner defections, as well as reports about how people are feeling at the firm right now….
I hate to invoke a cliché, but “David versus Goliath” captures the challenge a smaller firm faces when litigating against an Am Law 200 firm. A small firm can feel like David when facing a larger firm that can bring more resources to bear on legal research, drafting motions, reviewing documents, etc.
The challenge increases when applied to clients. Many of my firm’s initial clients were startups or emerging companies with limited litigation budgets. Their adversaries often were much larger, established companies with seemingly unlimited budgets. Thus, we faced not only the challenge of litigating against brand-name firms with hundreds of attorneys, but we also initially had clients who simply could not afford to spend as much in legal fees as their well-heeled opponents.
So how can a small firm, especially representing a smaller company, effectively litigate against a proverbial army of lawyers representing a client to whom money is no object?
Yes, we know: you’re all waiting eagerly for spring bonuses. We are too (because it’s great for the news cycle and our traffic). But right now we have nothing to report on that front. As soon as you hear of spring bonus movement (cough cough, Sullivan & Cromwell), please email us or text us (646-820-8477 / 646-820-TIPS).
In the meantime, we’ll catch up on regular bonus news. Even though it’s already March, some firms are only just now getting around to announcing their 2011 year-end bonuses. We have various tips floating around for various firms, but we need additional corroboration for many of them. If you can help us out, you know where to reach us (see contact info, supra).
Today we have bonus news from Winston & Strawn, which announced its bonuses a while ago….
One of the memos is great; the other one is terrible. I know which is which. And, as I said, I haven’t yet read either one of them.
Isn’t trust terribly unfair?
Think about the many ways that establishing trust permeates a business relationship. Once the superior (whether that be partner, client, boss, or whomever) trusts the underling, the underling can do no wrong. And once the superior mistrusts the underling, the underling can do no right.
Which of the two unread memos in my inbox is great? The one from the guy I trust. All of his earlier memos have been great. They’re crisp, incisive, intelligent, and lucid; the one that I haven’t yet read is surely a thing of beauty, too. Which memo stinks? The one from the guy I don’t trust. All of his earlier memos have left me gripping my head in agony, trying to figure out what in God’s name this clown was trying to communicate and why anyone would think it was worth trying to communicate that drivel.
Trust permeates everything; it’s terribly unfair. Trust infuses more than just the memos I haven’t yet read. Trust permeates silence, too. How can trust permeate silence?
Our ongoing ATL School & Firm Insider Survey (take it here!), asks current law students, among other things, “What do you expect to do after you graduate?” A whopping 71% tell us that they expect to work for a firm. (This percentage was consistent across class years.) That this proportion is so high, and so at odds with the NLJ findings, can mean some combination of two things:
The ATL student readership skews heavily toward that minority of students who will actually snag Biglaw gigs.
Many (if not most) expectations of law firm employment will be dashed against the reality of a contracting job market. In other words, a majority of students think they are in the fortunate minority
After the jump, we’ll look at how wide the gap between student expectation and market reality is, even at the “go-to” schools:
A law student client — already an MBA — said she needed convincing to drop out of her third-tier school.
I told her to calculate the return on investment for the final three semesters.
She crunched the numbers.
“Debit-wise, I’ve burned $80k in savings and I’m looking at another $100k of borrowed money. On the credit side, I might find a low-salary doc review gig.” She pretended to scratch notes. “So… big loans, interest payments, inadequate cash flow…opportunity cost of 18 more wasted months learning legal mumbo-jumbo followed by the bar exam…”
“In other words…” I egged her on.
“I’d be totally screwed.” She affixed the cap on her pen. “Thanks. I’m convinced.”
I posed the question we were dancing around: “Why are we having this conversation?”
We’re getting the sense, based on anecdotal evidence showing up in our inbox, that law firms are quietly making cuts to the ranks of attorneys and staff. They’re doing so somewhat stealthily, however — in dribs and drabs, spread out over decent stretches of time, often invoking performance reasons. So we’re having a hard time obtaining enough information on any one firm to issue a report.
We need your help in keeping law firms honest. If you have layoff news to report, please send it our way, by email or by text message (646-820-8477 / 646-820-TIPS). As you’ve probably already noticed, we do not name our sources.
One firm that’s being commendably upfront about its reductions is Bingham McCutchen. This afternoon, the firm announced some staff layoffs….
Which law school helped her land a fabulous Biglaw job?
The general economy started to turn around last year, but the legal job market remains sluggish. In 2011, many top law schools sent fewer graduates into first-year associate jobs at the nation’s largest 250 law firms than they did in 2010. That’s the bottom-line finding of the National Law Journal’s annual survey of which schools the NLJ 250 firms relied on most heavily when filling first-year associate classes.
The results of the survey should be interesting to current law students and law firm attorneys. And they’re of possible practical import to prospective law students who are now choosing between law schools (or deciding whether to go to law school at all, based on a cost-benefit analysis that pits tuition and student loans against post-graduate job prospects).
So let’s look at the top 10 law schools, ranked by the percentage of their 2011 juris doctor graduates who landed jobs at NLJ 250 firms (i.e., “Biglaw”)….
Howrey dissolved almost an entire year ago, but its bones are still filling warehouses and servers across the world, and costing hundreds of thousands of dollars in storage fees.
The firm’s estate is embroiled in the painstaking process of destroying old files or returning them to former clients. There is still a long, long way to go. In today’s Washington Post, we get to see a vivid illustration of the problems involved in putting to rest a massive law firm that bridged the paper and electronic eras.
It is also a good cautionary tale for other firms: these documents will not just go away, even if your firm bites the dust…
Over the past few weeks, we’ve been receiving interesting reports about Dewey & LeBoeuf. They were nothing but vague rumblings for a while, but they’ve now reached the point where we have enough to write about.
So let’s check in and ask: How do things stand at this major, top-tier law firm? In other words, “Where’s LeBoeuf?”
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.