Yesterday, partners at Dewey & LeBoeuf received their $25,000 monthly partner draws. For many of them, that might be the last check they receive from the embattled firm.
Over 100 Dewey partners have left the firm since the start of the year. But we now have reports that as many as 200 people, including a large number of partners, will be departing today. Apparently, “the banks” (i.e., Dewey creditors) are calling the shots now. As we reported yesterday, we seem to be moving forward toward a May 15th end date for Dewey.
But as they say in Lion in Winter: when the fall is all there is, it matters….
One rumor had the firm closing its doors as early as tomorrow. Another suggested a date closer to Memorial Day. The truth may lie somewhere in between: according to sources cited by Am Law Daily (reg. req.), “Dewey is poised to close by May 15 and possibly sooner.”
(Also at Am Law, a very handy Dewey Departure Tracker. It lists each defector’s name, practice area, departure date, new firm, and location. It’s a great resource.)
The May 15 date makes some sense. As reported by Thomson Reuters News & Insight, on Monday the firm received a two-week extension from lenders for renegotiating its $100 million credit line. Assuming the parties can’t reach a new agreement, which seems like a good assumption right now, the new deadline would fall on or about May 15, the shutdown date mentioned by Am Law.
Compared to other outlets, we’ve been focusing a lot on the human side of the Dewey story. We’ve talked about the partners, including the particular partners who might be blamed for Dewey’s demise. We’ve talked about the staff, bringing you a paralegal’s lament.
Tonight let’s consider the fate of would-be Dewey associates, both full-time and summer associates, who now find themselves left in the lurch….
As usual, UPDATES — including one relating to support staff — after the jump.
Dewey & LeBoeuf's sign at 1301 Avenue of the Americas. (Photo by David Lat. Feel free to use.)
“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.
Over the weekend, we passed along some good news about Dewey & LeBoeuf. It appears that the firm has been given a new (even if temporary) lease on life by its lenders. Initial reports suggested that the firm was getting one week or maybe two in order to reach a new debt deal with its banks. It now appears, however, that the firm could be getting a more long-term extension, in the range of 90 to 120 days. The deal still needs to be finalized; keep your fingers crossed.
That’s the good news. Now, back to the bad news: more partner defections from Dewey….
Elie here. In news that should shock no one, Dewey & LeBoeuf has canceled its 2012 summer program. Honestly, if you were a 2L who was planning on going to Dewey this summer and you are just now figuring out that it’s not going to happen, you should probably spend more time reading Above the Law and less time sniffing glue. (Pro tip: sniffing glue + reading ATL = total awesomeness.)
We’ve also got some additional information about a possible criminal probe into the Dewey situation by Manhattan District Attorney Cyrus Vance. (We briefly considered the headlines “Dewey Have Any Lube for this Probe?” or “Dewey Know Any Good Criminal Defense Lawyers?”)
Let’s get into it. I’ll turn the floor over to Lat….
UPDATE (5:25 PM): Additional info, appended after the jump.
UPDATE (4/30/2012): We’ve added some material to the memo about the cancellation of the summer program that was initially missing when we first published this post.
Lat here. In late March, I wrote a story with this title: “Sullivan & Cromwell Will Pay Spring Bonuses — But Will They Be Too Small To Be Worth Matching?”
I’m sad to report that my prediction has come to pass. Sullivan & Cromwell has announced spring bonuses, but they’re nothing to write home about. They are probably too modest for other firms to bother matching. The spring bonuses of Quinn Emanuel will surely exceed the S&C amounts.
In August of 2009, while driving around Silicon Valley after speaking at Santa Clara Law, I saw an office park in East Palo Alto with a sign that jumped out at me. Being a Biglaw groupie, I stopped and snapped a picture:
I parked, got out of my rental car, and walked around. I was struck by the beauty of the overall office complex, with its expansive plaza, immaculate landscaping, and fountains. It was a veritable law firm Xanadu!
At some point, the Department of Education is going to have to step in and put a stop to the American Bar Association’s monopoly over the standards for legal education. The ABA has gotten to the point where it’s just trolling us — making patently ridiculous decisions as if it doesn’t even have to pretend to have a grasp on the challenges facing prospective law students and the legal profession.
The ABA’s “watchdog” for law schools is stepping down. Hulett “Bucky” Askew, of John Marshall Law School in Atlanta, has served as the ABA’s consultant on legal education since 2006. Note: that’s a pre-recession date. I take this as more evidence (as if we needed more) that the ABA has been operating with a pre-recession mentality throughout the entire recession and quasi-recovery.
But let’s stop crying about the ABA’s almost comically slow response to the shifting legal education market. Wait until you get a load of the guy who’s going to be Askew’s interim replacement…
Today we’ll give you a double dose of Dewey. This morning we published an eloquent email from a Dewey paralegal, which looked at the story from a human-interest perspective. Now we shall return to the business aspects of the crisis.
Thus far, the story of Dewey & LeBoeuf has been told primarily from the perspective of lawyers. On the whole, the coverage has been quite partner-focused, centered on which partners are defecting to which rival law firms. There has been somediscussion, but not a huge amount, of the plight of associates.
There has been even less discussion of the support staff. But if Dewey goes under, staffers will also lose their jobs. And in this day and age of law firms slashing staff, secretaries and paralegals may have a harder time finding new positions than attorneys.
Here is one paralegal’s perspective on what’s going on at D&L….
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: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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