- 5th Circuit, 9/11, Abortion, Biglaw, Dewey & LeBoeuf, Food, Law Schools, Morning Docket, Prostitution, SCOTUS, Sex, Sex Scandals, Student Loans, Supreme Court, Texas
* While Dewey’s former culture gets roasted on a spit, and the seemingly unending drama gets turned into a montage of living lawyer jokes, we’re still waiting for the final punchline. [New York Times; Wall Street Journal]
* Don Verrilli tried so hard, and got so far (depending on who you ask), but in the end, it doesn’t even matter. When Linkin Park lyrics apply to your oral argument skills, you know you’re kind of screwed. [New York Times]
* The 9/11 arraignments went off without a hitch this weekend. And by that, we mean that it was a 13 hour hearing filled multiple interruptions, and grandstanding about “appropriate” courtroom fashion. [Fox News]
* In a “re-re-reversal,” Judge Jerry Smith, on a three-judge panel of the Fifth Circuit, reinstated Planned Parenthood’s injunction against Texas without even so much as a homework assignment. [Dallas Observer]
* The It Gets Worse Project: if you thought that the Law School Transparency debt figures were scary before, then take a look at them now. Six figures of debt just got a lot harder to swallow. [National Law Journal]
* Scalia gets busted on a case of hot-dog hooking. No, not that Scalia. A woman from Long Island has been accused, for the second time, of
selling swallowing foot-longs in the back of her food truck. [New York Post]
- Art, Bankruptcy, Biglaw, Dewey & LeBoeuf, Dissolution, ERISA, Food, Health Care / Medicine, Holland & Knight, JPMorgan Chase, Lateral Moves, Money, Musical Chairs, Partner Issues
“Our catering service requires a credit card; client matter numbers no longer accepted. Seamless food ordering requires a credit card or a corporate card.”
“It’s not clear that we still have health insurance.”
“Dewey has cut off subscriptions, and expenses are no longer being reimbursed.”
“Everyone is pretty much packing up. Bankers boxes are on backorder in supplies.”
“Dewey is quietly removing the art from the walls. Perhaps it belongs to the creditors?”
These are some of the sad stories we’re hearing out of Dewey & LeBoeuf today. Let’s discuss the latest news and rumor coming out of the deeply troubled law firm….
Multiple UPDATES and new links, after the jump (at the very end of this post). The Dewey story is moving so quickly that we will do multiple updates to our existing posts instead of writing a new post every time there’s a little additional news to report. Otherwise half of the stories on our front page would be about Dewey, and there is other Biglaw news to report — e.g., the new profit-per-partner rankings from Am Law, salacious lawsuits against prominent D.C. law firms, etc.
- Bankruptcy, Biglaw, Citigroup, Dewey & LeBoeuf, Dissolution, JPMorgan Chase, Law Firm Mergers, Money, Partner Issues
As we’ve previously mentioned, tomorrow, April 30, was supposed to be the deadline for Dewey to reach a new deal with its syndicate of bank lenders. The firm owes its banks a reported $75 million pursuant to a $100 million revolving line of credit.
So what’s the latest — and relatively upbeat — news about Dewey?
UPDATE (6:00 PM): More Dewey debt news — good news, happily — has been added below.
Here’s an unsurprising newsflash: young people have student loan debt, old people have student loan debt, and they have no idea what to do about it. With student loan debt having surpassed the one-trillion-dollar mark, we’ve officially reached a point where the media is calling this the crisis du jour.
We’ve discussed the dangers of incurring student loan debt time and time again throughout these pages, but it seems that people still don’t get it. They’d like some more — hmm, how shall we put this? — “sage” advice. They’d prefer to publish their woes for all to see on “the most popular and widely syndicated column in the world.”
They’ve chosen to go to Dear Abby for the answers….
- American Bar Association / ABA, Cars, Disasters / Emergencies, Immigration, Law Schools, Morning Docket, New Jersey, New York Times, Police, SCOTUS, Student Loans, Supreme Court, Wal-Mart
* Arizona’s immigration law is heading to the Supreme Court today. Meanwhile, former Senator Dennis DeConcini lobbed the worst insult ever against his state. How embarrassing for you, Arizona. [New York Times]
* Will Wal-Mart regret not disclosing its bribery investigation sooner? Not when the delay saved millions in criminal fines. What Wal-Mart will regret is being forced into disclosure by the NYT narcs. [Corporate Counsel]
* Delete all the oil from ocean, and then maybe we’ll care about this. A former BP employee was charged with obstruction of justice for deleting texts having to do with the Deepwater Horizon disaster. [Bloomberg]
* The Tennessee Board of Law Examiners has granted Duncan Law an extension on its bid for ABA accreditation. Woohoo, five more years of allowing students to “negligently enroll.” [Knoxville News Sentinel]
* “Once you cross the six-figure mark, you think, what’s a few thousand dollars more?” You’re doing it wrong: you’re supposed to be bragging about a six-figure salary, not a six-figure debt obligation. [Baltimore Sun]
* New Jersey residents don’t always have the great pleasure of nearly being killed by two high-speed Lamborghinis, but when they do, they prefer that police officers be suspended and sue over it. [ABC News]
Oh, I remember the first time somebody threatened to throw me in jail because I didn’t pay a debt. I was young and stupid, but not ignorant and fearful. I said, “Debtor’s prisons were outlawed!” (I didn’t know that from law school, I knew that from AP History.) The debt collector stammered and said, “Well, we can still get you in trouble.” Since I was already “in trouble” what with $150,000 in principal outstanding, I instructed the collector to contact me via mail and hung up.
Debt collectors are like bullies: punch them in the mouth, and well, they don’t “go away,” but they stop getting all up in your face.
Eventually, a summons came in the mail, and I responded, and yada yada, I’m still not in jail. The key is that “I responded.” I’ve made a lot of mistakes with my debts over the years, but I haven’t made a lot of mistakes with “courts.” See, courts matter. Debt collectors with hard-ons do not.
Keep that in mind as your read this story about a cancer survivor who got thrown in jail after failing to pay a medical debt that she didn’t even actually owe….
- Biglaw, Dewey & LeBoeuf, Dewey Ballantine, Lateral Moves, Law Firm Mergers, LeBoeuf Lamb, Money, Partner Issues, Reader Polls
Now that the firm is struggling, legacy Dewey people and legacy LeBoeuf people have been blaming each other for the firm’s troubles. Who didn’t bring the prestige, who didn’t bring the rain, who is responsible for post-merger decisions that have led to turmoil?
Oh, recriminations. Fun times. We’ve been corresponding with some people who were at the respective firms before and after the merger, and listening to them blame the other side has been highly entertaining. Take a look, and vote for yourself about who is to blame…
* Joe Amendola has filed a motion to dismiss the child sex abuse charges against his client, Jerry Sandusky. And if he actually thinks that’s going to happen, then he definitely needs to call 1-800-REALITY. [Associated Press]
* @AllenStanford’s motion for a #newtrial has been denied. The Ponzi schemer’s “conviction by journo tweet” argument has failed. Major props to Judge David Hittner for issuing a ruling in less than 140 characters. [Bloomberg]
* Everyone’s obsessed with the U.S. News law school rankings, but here’s a ranking that people should actually be paying attention to: the law schools that lead to the most debt. [The Short List / U.S. News and World Report]
* This defunct firm’s homeless Halloween party just won’t be as fun this year. Steven J. Baum P.C. has to fork over $4M to settle a probe over its alleged foreclosure abuses. [Thomson Reuters News & Insight]
* St. John’s Law is planning to launch two new LL.M. programs, neither of which is in tax. This is newsworthy because people will apply anyway, and then bitch about the “value” of their degree. [National Law Journal]
* John Payton, President and Director-Counsel of the NAACP Legal Defense Fund, RIP. [NAACP LDF]
Welcome to the latest installment of Lawyers & Economics, our occasional video series on financial topics by Professor William Birdthistle of Chicago-Kent College of Law. He’s joined in some of these videos by an acting professional: Johnny Kastl, television actor turned 2L at Iowa Law, better known to some of you as Dr. Doug Murphy of “Scrubs.”
Today’s topic isn’t going away anytime soon either. If you have — or are thinking of taking on — student loans, keep reading….