Dewey & LeBoeuf

Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.

Three years ago I published What Laterals Need to Know: A Modest Proposal, which essayed the thought that firms had an obligation to disclose certain information about the firm in advance to a prospective lateral partner.

At the time I wrote, I treated it more or less as a thought experiment, but we now see that shirking that obligation can come back to bite firms with sharp and large teeth right here in the real world, as seen in Henry Bunsow’s high-profile suit against Dewey’s former leadership (accusing them of running a “Ponzi scheme,” and alleging he’s out $1.8-million in lost capital, among other damages). The gist of Bunsow’s action is that Dewey’s leadership painted a misleadingly rosy picture of Dewey’s financial health, and failed to disclose its obligations in deferred compensation. Bunsow further alleges that former chairman Stephen Davis withdrew his own capital investment after he was forced out of his leadership role and “took those funds personally to the disadvantage of the firm and his fellow partners.”

My three-year-old proposal was that firms be obliged to prepare the equivalent of a Private Placement Memorandum for laterals — equally available to incumbent partners as well, of course.

I also noted that the reaction of most readers would probably fall into polar camps: That my proposal was “fascinating” or else “preposterous”….

double red triangle arrows Continue reading “Time for the Law Firm PPM?”

* What Dewey know about this failed firm’s bankruptcy case? According to Judge Glenn’s latest order, it seems like D&L’s Chapter 11 plan is on track for confirmation in late February, unless there are objections, of course. [Am Law Daily (sub. req.)]

* The Law School Admission Council is suing California because the state’s legislature banned the practice of alerting schools when applicants had extra time to complete the LSAT. How lovely that LSAC values the ability to discriminate. [National Law Journal]

* “It’s not like we let anybody in the door. We don’t.” Apparently Cooley Law’s new Florida campus has very stringent admissions standards. Oh really? What else is required, aside from a pulse? [Tampa Tribune]

* It’s now too constitutionally risky for cops to get all frisky: a federal judge ordered that the NYPD cease its stock-and-frisk trespass stops without reasonable suspicion of actual trespass. [New York Law Journal]

* Tamara Brady, the lawyer for the accused shooter in the Aurora movie theater massacre, is setting the stage for her client’s diminished capacity defense — because even the mentally ill can buy guns. [Bloomberg]

* Pfc. Bradley Manning of WikiLeaks infamy will receive a reduced sentence if he’s convicted due to his illegal pretrial punishment, like being forced to sleep in the nude. A true hero! [Nation Now / Los Angeles Times]

* And here’s the depressing fact of the day (well, at least the morning): the legal services sector added just enough jobs from December 2011 to December 2012 to represent a .7% increase. Gah, not even a full percentage point! [WSJ Law Blog (sub. req.)]

* A federal judge who never worked at a law firm for a single day in her life stepped down from the S.D.N.Y. to join Zuckerman Spaeder. She only wanted to “try something new,” but she may be in for a little bit of a rude awakening. [DealBook / New York Times]

* Dewey know what the “fundamental problem” is with this failed firm’s partner contribution plan? When even the bankruptcy judge overseeing the case is confused, you know you’re in for a bumpy ride. [Am Law Daily]

* The suit against Albany Law over its allegedly misleading employment statistics was dismissed, but have faith, ye of little hope, because some cases are heading to discovery. [Thomson Reuters News & Insight]

* James Holmes, the man accused of murder in the Aurora movie theater massacre, will appear in court today for his first evidentiary hearing. Of course, none of that matters, because he’ll just say he was insane. [CNN]

* Dewey know how much money this failed firm has run up on its tab for legal advisers since May? It’s quite the pretty penny — $14.8 million — and that amount actually includes some pretty ridiculous fees and charges, like $21,843 for photocopies. [Am Law Daily]

* Everyone’s glad that we didn’t nosedive over the fiscal cliff, but the people who are the most excited about it seem to be Biglaw partners. This wasn’t the best bill, and more uncertainty means more work, which means more money. [National Law Journal]

* It looks like we’re never going to find out what the Justice Department’s legal justification was for the targeted killing of Anwar al-Awlaki, because a federal judge upheld the validity of its secret memo. [New York Times]

* Everyone flipped out over Instagram’s money filter, but they’re keeping relatively quiet about this mandatory arbitration provision. Quick, post some pseudo-legalese on your Facebook wall. [WSJ Law Blog (sub. req.)]

* Good news, everyone! Thanks to this ruling, in Virginia, you can be as nasty and negative as you want to be on Yelp without fear that your voice will be censored… kind of like the Above the Law comments. [All Things D]

The year is quickly drawing to a close, but we have unfinished business to conduct here at Above the Law. Come on, people, we still have to crown our Lawyer of the Year for 2012.

Thank you to everyone who responded to our call for nominations, in the comments or via email. We’ve narrowed down the nominees to a field of nine (although you’ll see only eight options in the poll because one is a joint nomination). As in past years, the contenders run the gamut from distinguished to despicable.

And the nominees are….

double red triangle arrows Continue reading “Above the Law’s 2012 Lawyer of the Year Competition: The Finalists!”

* “As a lawyer, this is very sad for me.” Al Togut, the prominent attorney pulling all of the strings behind the curtain of the Dewey & LeBoeuf bankruptcy filings, wishes that there was some way that the firm could’ve been saved. [Am Law Daily]

* Guys at my law school used to break into the registrar’s office to steal transcript paper all the time; it was no big deal. No really, as far as sentencing goes, apparently doing such a thing isn’t that big of a deal in Virginia. [Daily Progress]

* That’s some nice lipstick you’ve got there, pig: Lincoln Memorial University’s Duncan School of Law is still trying to get ABA accreditation by changing everything it can, including its lax admissions standards. [Knoxville News Sentinel]

* Even though Peter Madoff’s supporters showered the court with with letters filled with compliments ahead of his sentencing, the Ponzi victims aren’t exactly showing him the same kind of love. [WSJ Law Blog (sub. req.)]

* This law firm in Texas is trying to make getting divorced a more pleasurable experience, so they invented something called the “Divorce Resort” — because there’s nothing like a four-star train wreck. [Huffington Post]

* Change may be coming soon in light of the Newtown shooting, but any talk about new federal restrictions on guns will hinge on the Supreme Court’s interpretation of the Second Amendment through the lens of the Heller case. [National Law Journal]

* Joel Sanders and the Steves are facing yet another “frivolous” lawsuit over their alleged misconduct while at the helm of the sinking S.S. Dewey, but this time in a multi-million dollar case filed by Aviva Life and Annuity over a 2010 bond offering. [Am Law Daily]

* Always a bridesmaid, never a bride: Pillsbury has had the urge to merge since February, and now the firm may finally get a chance to walk down the aisle with Dickstein Shapiro. [Thomson Reuters News & Insight]

* Income-based repayment is a bastion of hope for law school graduates drowning in student loan debt, but when the tax man commeth, and he will, you’ll quickly find out that the IRS doesn’t have IBR. [New York Times]

* Is the premise of graduating with “zero debt” from a law school that hasn’t been accredited by the ABA something that you should actually consider? Sure, if you don’t mind zero jobs. [U.S. News and World Report]

* Daniel Inouye, Hawaii’s Senate representative for five decades and a GW Law School graduate, RIP. [CNN]

Ed. note: This is a new series from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital, and related issues. Some of these pieces have previously appeared, in slightly different form, on AdamSmithEsq.com.

A Wharton School professor has analyzed the performance, and pay levels, of external hires versus internal staff promotions. He used personnel data from a division of a major U.S. investment bank for 2003 to 2009, and the characteristics of that talent market are remarkably similar to our own.

Investment banking, Professor Matthew Bidwell writes, represents “an interesting context in which to study the effects of internal versus external mobility [because] organizational performance often depends on the skills of the workforce, [thereby] increasing the importance of personnel decisions.” In addition, workers in banking are “notoriously mobile, making this a context in which organizations regularly engage in external hiring at all levels.”

The genesis of his study was seeking an answer to this question: what has the increased mobility of workers over the past 30 or so years meant, as firms turn away from offering lifetime employment in favor of relying on the external labor market to find experienced workers at all levels of the organization?

double red triangle arrows Continue reading “From Across the Desk: Lateral Hires & Guarantees Deconstructed”

* “Did the imperative use of the F-bomb … threaten judicial authority?” Wow, seriously? This is perhaps the most entertaining question presented for review in a Supreme Court certiorari petition in the history of man. [National Law Journal]

* Boy, Dewey have some expensive paintings for you to buy! This failed firm’s art collection will be hitting the auction block in February, and the entire LeBoeuf lot is supposedly worth $2.3M, but most pieces are pretty damn ugly. [WSJ Law Blog (sub. req.)]

* When anonymous commenting goes wronger-er: Jim Letten, U.S. Attorney for the Eastern District of Louisiana, has resigned amid the scandal caused by his underlings’ obnoxious comments. [Times-Picayune]

* Your employers really don’t want pictures of your office holiday party antics going viral online (but we do). Here are some of the many ways they’ll try to keep you from becoming internet famous. [Corporate Counsel]

* George Zimmerman, the man accused of killing Trayvon Martin, is suing NBCUniversal, alleging that the network and Today show reporters committed serious “journalistic crimes.” [Media Decoder / New York Times]

* On the even of the Supreme Court’s conference that will determine whether a gay marriage case will be on the docket in 2013, a federal judge ruled that Nevada can ban the practice in the state. Not fab. :( [BuzzFeed]

* A bankruptcy judge gave Dewey & LeBoeuf’s unsecured creditors the go-ahead to sue the pants off Joel Sanders and the Steves (a moniker for what likely would’ve been an extremely orange band). [Am Law Daily]

* Hostess Brands received final approval to wind down its business and begin selling off its Twinkies to satisfy its creditors, but not before $1.8M in bonuses payouts were authorized. [DealBook / New York Times]

* Foul balls: as if his public tiff with Lance Armstrong and indecent exposure sentence weren’t enough, Clark Calvin Griffith is facing bar discipline over his pervy predilections. [Minneapolis/St. Paul Business Journal]

* UCLA School of Law recently announced its plans to offer an LL.M. in Law and Sexuality. Now, recall that just one month ago, Justice Scalia advised students not to take “law and _____” courses. [National Law Journal]

* Dominique Strauss-Kahn agreed to settle a suit brought against him by a hotel maid who accused him of rape. We still don’t know the dollar amount, but we bet he kept his aggravated pimp hand strong. [Bloomberg]

* A day in the life of Lindsay Lohan includes an arrest for assault in New York, followed by charges related to a car crash in California. Her legal drama is almost as bad as Liz & Dick. [Daily Dish / San Francisco Chronicle]

* Jerry Finkelstein, former publisher of the New York Law Journal, RIP. [New York Law Journal]

* George C. Kern Jr., Sullivan & Cromwell’s M&A maven, RIP. [New York Times]

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