Citigroup

With this year more than halfway done, let’s look in the rear-view mirror and survey managing partners’ confidence in the legal industry during the second quarter of 2014. Wall Street investors seem generally optimistic, at least based on the state of the stock market (despite today’s turbulence). Are law firm leaders similarly hopeful?

Survey says — well, nothing terribly exciting, but let’s have a look anyway….

double red triangle arrows Continue reading “Managing Partners Take Survey; What Happens Next… Won’t Amaze You”

* Jury duty is the only major civic duty that no one ever talks about. Professor Andrew Ferguson would like to change that by encouraging jurors to speak up about their experience. Enjoy learning how the sausage of justice is made! [Huffington Post]

* Verizon threatens to sue Netflix for honestly reporting how bad Verizon’s internet speeds are. [DailyTech]

* Hey, after all those threesomes, Case Western Med School is the one in court over “professionalism” concerns. [Cleveland Plain-Dealer]

* Of course a case about using a chemical weapon on a mistress is named “Bond.” Let’s examine Justice Scalia’s curious concurrence, shall we? [Constitutional Accountability Center]

* Dragons and isolationism. Makes sense. [The Legal Geeks]

* Cybercrime is pretty costly. [Lawfare]

* The emerging schism in the LGBT community on whether the term “Tranny” is empowering or a slur. Of course this is Legal Insurrection coverage, so the conclusion here is everyone who’s not with the straight white male program should just keep quiet, but the issue itself is interesting. [Legal Insurrection]

* Judge Kopf was asked to review Uncertain Justice by Professor Tribe and Joshua Matz. He didn’t want to do it, but thankfully he changed his mind. [Hercules and the Umpire]

* Slate Money discussed the Second Circuit’s reversal of Judge Rakoff last week and cited Above the Law specifically for the word “benchslap.” [Slate Money]

* Congratulations to UC Hastings dean and occasional ATL columnist Frank Wu on his reappointment as chancellor and dean! [UC Hastings]

* Lawyer + Cat = Internet win. Here’s the pic that’s going viral… [Imgur]

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Johnny Manziel (By: Thomas Campbell-USA TODAY Sports)

* Sad day for Jonathan Lee Riches. His lawsuit over Johnny Manziel’s penis has been thrown out of court. [Black Sports Online]

* Hot on the heels of yesterday’s item about SCOTUS porn parties, Professor Tribe guest blogs about his new book (affiliate link) and coercion, bribery, and influence. [The Volokh Conspiracy / Washington Post]

* Former Brooklyn DA and aspiring TV star Charles Hynes is staring down larceny accusations. [Gothamist]

* Texas basically assigns a cop to actively discourage investigate indigent parties seeking assigned counsel. [Socialist Gumshoe]

* The Supreme Court doesn’t like talking about patents — its opinions on the subject are getting shorter and shorter. [Patently-O]

* A lawyer is in hot water for allowing underaged drinking at a post prom party. The point was to keep the kids from driving. But no good deed goes unpunished. [Turn to 10]

* An interesting profile of one of my favorite professors, Ken Feinberg, labeling him “the lawyer who decides what a life is worth.” Yikes. [KDVR]

* The business strategy of just telling clients what they want to hear deflates. [Dealbreaker]

* Who says no one reads law reviews? The porn industry does and they really like this student Note. [XBiz]

* This is why we can’t have nice things. Second Circuit explains that if a revolving door agency of sycophants says it’s OK, it’s OK. Full opinion below…. [New York Times]

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Last week, the American Lawyer announced its eagerly anticipated Am Law 100 rankings, reflecting the financial performance of major law firms in 2013. On the whole, the news wasn’t bad. The elite firms did great, and most other firms eked out “modest, hard-won gains.” Am Law suggested that the big vereins underperformed, but that indictment might have been too harsh.

The Am Law data focuses on last year. What about last quarter? How are law firms doing in 2014 so far?

A new report from Citi Private Bank, a leading provider of financial services to leading law firms, has some answers….

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Thumbs up, managing partners!

April Fools’ Day is a terrible day to be in this business. Every tip that comes in requires an extra layer of scrutiny because even longstanding, trusted sources are trying to troll. It’s really not all that funny to make up false but entirely believable stories and pass them off as real. That’s why the Daily Currant isn’t funny.

Which is why when Citi Private Bank issued its First Quarter report on the confidence of managing partners across the legal landscape and declared that managing partners have a rosy outlook, it earned a double take on this end. After all, wasn’t it just a few months ago that managing partners were telling the American Lawyer that it was all gloom and doom on the horizon?

So is this result real? It is, but the headline isn’t the end of the story….

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‘So it’s decided – we’ll be Cravath, Swaine, Moore, & Doritos.’

All those professional responsibility lectures, and bar prep, and boring CLEs that I attended after becoming a lawyer, and all the boring CLEs I dutifully watched on the Internet after I escaped the probationary period, consistently preached the evils of non-lawyer ownership of law firms.

It raises ethical concerns! It dilutes what it means to be a lawyer! This is a profession, not a business! All the usual complaints from a profession convinced that it’s made up of beautiful and unique snowflakes with unimpeachable judgment.

But with the rest of the world embracing new structures to permit non-lawyer ownership — and empirical evidence suggesting that those models raise fewer ethical concerns than the alternative — some argue that the U.S. firm model stifles innovation and cripples international competitiveness.

But the better question is, “Don’t non-lawyers own law firms already?” And to the extent the answer is “of course,” shouldn’t the profession be bending over backwards to approve ownership models that better serve the firms and their clients than the status quo?

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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.

Let’s see what’s in store for 2014….

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Debrahlee Lorenzana

[S]he got nerve damage. What’s unusual about that? Sometimes they screw up.

Frank Panetta, lawyer for Debrahlee Lorenzana, issuing comment on the buxom beauty’s latest lawsuit against Quest Diagnostics. She’s now claiming that she suffered “serious and severe permanent injuries” after getting her blood drawn.

(You may remember Ms. Lorenzana from her lawsuit against Citigroup, in which she alleged that she was let go for being distractingly attractive.)

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.

Let’s look at the other highlights of the report:

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Missing: multiple midlevels

Even though there’s significant excess capacity — meaning too many lawyers chasing too little work — I am hearing the concern that there aren’t enough midlevel associates.

Dan DiPietro, chairman of the Citi Private Bank Law Firm Group, offering an explanation as to why he thinks Biglaw firms want to increase headcount in this time of economic stress. In the latest Law Watch Managing Partner Confidence Index Survey, law firm leaders’ overall confidence level was lower than it has been since last year at this time, with expectations for profits and revenues also on the decline. The only area where their confidence rose was in expectations for hiring associates and equity partners.

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