Dan DiPietro

How Did Biglaw Fare in the First Quarter of 2013?

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I was recently chatting with a young litigation partner about how the year was going for his firm thus far. He confessed it was off to a sluggish start. He was not extremely busy himself, but he said that his colleagues on the transactional side were practically twiddling their thumbs.

He wondered: was this slowness specific to his firm, or was the legal industry in general not exactly going gangbusters? I shared with him my sense, admittedly anecdotal, that 2013 to date has been pretty “meh.”

Now we have actual data on the first quarter. My partner friend should be relieved. Misery loves company….

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Do Managing Partners Need Mood Stabilizers?

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It’s an interesting question, right? If you know of a managing partner who could use some medication, please email us or text us (646-820-8477).

What prompted the question on our part? Here, we’ll tell you….

UPDATE (5:30 p.m.): Now with added commentary from Anonymous Partner.

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How Did Biglaw Do in 2012? The Bankers Speak

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The legal economy right now is not unlike the economy writ large. People with small or non-existent paychecks are suffering, but those at the top are actually doing just fine for themselves.

This isn’t necessarily a bad thing; it might just be reality. As David Brooks put it in a recent New York Times column, “[t]he meritocracy is overwhelming the liberal project.” He argues that in our current, rapidly changing economy, people who are smart, well-educated, and hardworking just end up doing better and better for themselves — and there are practical limits on how much redistributive policies can “fix” this situation.

Sorry for that digression — back to Biglaw. Let’s take a look at how the rich are getting richer….

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Biglaw: Welcome to the New Normal

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The grass isn’t quite this green in the ‘new normal.’

In a piece from last month, New York Times columnist Paul Krugman wondered: Is Growth Over? One could very easily take this question, posed with respect to the broader economy, and apply it to the world of large law firms.

And what would the answer be? According to a client advisory just issued by Citi Private Bank and Hildebrandt Consulting, “Probably.”

Their analysis is gloomy, although guardedly so; we’re not talking about “the sky is falling” pronouncements. Let’s take a look at the specifics….

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Non-Sequiturs: 10.26.12

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* L.A. city council voted in favor of banning pet stores. Because walking your dog contributes to childhood obesitywaitwaitwhatthehell? (Elie here: Pet stores contribute proliferation of puppy mills, and puppy mills are evil. People should only acquire pets from reputable breeders, or by opening their hearts to one of the many loving animals at your local animal shelter.) [LA Times via Overlawyered]

* If marijuana gets legalized, will there be a Green Gold Rush? [Daily Beast]

* A Texas high school won’t let students vote for Homecoming unless they wear an electronic tracking chip around their neck. I didn’t realize Minority Report took place in Texas. [CNET]

* A special Halloween version of scary s**t on the internet you maybe should be afraid of. [IT-Lex]

* A bunch of alternate mottos for legal blogs, ATL included. Ours stars — who else? — the Commentariat. Nice work gang. [Legal Blog Watch]

* After the jump, Lee Pacchia speaks with Dan DiPietro of Citibank, who has a watchlist of the Biglaw firms that may fail in the near future….

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More Bad News for Biglaw: Waning Confidence of Managing Partners Spells Trouble Ahead

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What is the future outlook for Biglaw? The Magic 8 Ball is not optimistic.

Last month, we wrote about a less-than-cheery report from Citi Private Bank’s Law Firm Group, the largest lender to U.S. law firms. The bottom line of that report for law firms: “With weak demand growth and the continuation of expense growth, it is likely that expenses will continue to grow at a faster pace than revenue, squeezing margins and making it tricky to achieve even low single-digit profit growth.”

As we mentioned in Morning Docket, there’s a new report out from our friends at Citi, and it also sounds pessimistic notes. It concerns the confidence levels of law firm managing partners.

What are the powers-that-be in Biglaw worried about right now? Let’s find out….

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In Praise of Partners’ Prudence: Why the Lack of Spring Bonuses May Have Been a Good Thing

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The fable of the ant and the grasshopper may have lessons for the world of large law firms.

As regular readers of Above the Law well know, most major law firms — with a few notable exceptions — did not pay spring or mid-year bonuses in 2012. Our associate readers generally viewed this news with disappointment, while our partner readers had less of a problem with it.

But perhaps even associates should have been supportive of their firms’ decisions not to pay spring bonuses. Storm clouds are gathering over the law firm world. So says a recent report by Biglaw’s biggest bankers, over at Citigroup….

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Moscow and the Middle East: Dewey Have A Problem?
(Plus more about Dewey’s loan covenants.)

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About two weeks ago, we covered reports about Dewey & LeBoeuf possibly shedding some of its overseas offices. We noted at the time, however, that the reports were vague, and we added that some D&L sources denied the existence of plans for closing any specific foreign office.

Well, the reports are getting increasingly detailed. Word on the street is that D&L might shutter three of its offices in the Middle East. And the firm’s Moscow office is reportedly being courted by other major U.S. law firms.

Which offices are being considered for closure? And who are Dewey’s suitors in Moscow?

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(Plus more about Dewey’s loan covenants.)”

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Morning Docket: 03.11.11

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* Johnson & Johnson will have to fix several factories after an agreement with the FDA prompted by massive product recalls. This still doesn’t explain why my bottle of Tylenol may contain tree nuts. [Bloomberg]

* Charlie Sheen hammered out a custody agreement With Brooke Mueller. That’s nice. [People Magazine]

* Texas may consider a law that would make losers pay attorneys’ fees. Easy, New York Mets. Not all losers. Just those who lose lawsuits. [New York Times]

* A discussion of the legal complaints lodged against the Wisconsin Legislature for Wednesday night’s votes. You know who’s not complaining? This guy. [Wisconsin State Journal]

* A former assistant attorney general from Maine was sentenced yesterday in a child porn case. This is definitely the year of the assistant AG. [ABA Journal]

Happy Birthday Nino

* Not all people living in Idaho are racists, duh. Some are gangsters from Boston. [New York Times]

* Law firm profits and productivity were up in 2010, while demand was flat and revenue was modestly up. Someone named Dan DiPietro and someone named Gretta Rusanow tag-teamed a report all about it. [Am Law Daily]

* A former McGuireWoods partner pleaded guilty to falsifying a tax document. [ABA Journal]

* Linda Greenhouse wishes Justice Scalia a happy 75th birthday. Sort of. [The Opinionator / New York Times]

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