I feel like I’ve stepped into a time machine that has taken me all the way back to 2009.
According to an internal memo obtained by Above the Law, the international law firm of Hogan Lovells is offering a voluntary separation program to U.S. staff. The memo, posted in full below, talks about needing to bring the firm’s support staff into alignment with overall firm needs.
The program is voluntary, but as we learned during the height of the recession, “voluntary” programs don’t always stay optional….
* The perp walk is illegal in France. It’s not clear from this article how the French view the crip walk. [Sacramento Bee]
* Carl Icahn, the Blockbuster bankruptcy, insider-trading charges, and a golden retriever wearing comically huge sunglasses. This story touches on three of those things. [Bloomberg]
* Hogan Lovells fired a partner who falsely claimed $1.6 million in expenses. To put that in perspective, that is $1.6 million more than I have. [Am Law Daily]
* A Brooklyn juror died of a heart attack while listening to testimony. And that’s… sad, I guess. But the story goes on to note that “The juror, who was unemployed, was said to be ‘happy’ to be collecting a check for his service on the case which was expected to go on for about a month.” Man. [New York Post]
* Sammy Alito batted down 10 popular misconceptions about the Supreme Court in a speech on Monday. Chief among these myths is that Justice Sotomayor listens to a lot of Buena Vista Social Club on her Zune. Sonia never really got into that album, Alito noted. [St. Louis Post-Dispatch via ABA Journal]
* Meanwhile, Justice Thomas wondered in a speech whether critics of the Supreme Court suffer from a “disease of illiteracy or laziness.” So is your face, Justice Thomas. So is your face. [Fox News]
Greetings from lovely Palm Springs, California, home to the 2011 annual education conference of the Association for Legal Career Professionals (better known to many of you as NALP). The setting is beautiful, the weather is fabulous, and the conference panels have been stimulating thus far. Who needs SXSW?
Yesterday I attended a very interesting session, covering a topic near and dear to the hearts of many Above the Law readers. The apt title of the panel: “From Black Boxes to Glass Houses: Evolving Expectations of Law Firm Transparency.”
The lively discussion covered a wide range of topics — and also offered some advice for law firms for dealing with the increased transparency of the digital age….
Every day that major law firms do not announce spring bonuses makes them look like below-market, “non-peer” institutions. It has become very clear that firms claiming to pay market compensation need to be providing spring bonuses.
The latest firm to yield to market realities is Hogan Lovells. The relatively new Ho-Love, formed by the merger of Hogan & Hartson and Lovells, showed love to its hos on Friday. The firm matched the Cravath scale for spring bonuses.
You can read the full memo below. But you should also listen to how surprised and happy Ho-Love associates are about the bonuses. Hogan associates are like bizzaro Sidley associates….
After all, there are fewer partners for Howrey to lose with each passing day, as the Howrey lawyer diaspora continues to grow. Let’s review the recent activity — and discuss some possible future defections.
Other outlets have noted additional partner departures. K.T. “Sunny” Cherian, described by The Recorder as a “top IP litigation rainmaker” with a book of business worth more than $10 million, joined the San Francisco office of Hogan Lovells this past weekend. Four other partners will join him in soaking up the Ho-Love: John Hamann, Sarah Jalali, Constance Ramos, and Scott Wales (who had been the hiring partner for Howrey’s S.F. office).
Also in S.F., Pillsbury Winthrop picked up IP partner Duane Mathiowetz. The news was reported by the Daily Journal (subscription), which noted that Mathiowetz, who worked as a mechanical engineer for a decade before going into law, has taken five patent cases to trial in the past five years (winning four).
Who might be the next to leave Howrey? Here’s some speculation….
I like it when the artifice drops and Biglaw is shown to be dominated by greed. I don’t necessarily use the word “greed” pejoratively. I like money, you like money, and if somebody offered you more money to do what you are doing already, you’d take it.
I just like it when people can admit that the only thing they care about is money. It just makes things more efficient. What do you want? More money! When do you want it? Now!
Associates get a lot of flack for being unabashedly greedy, but an excellent report in today’s Wall Street Journal illustrates that Biglaw partners are just as obsessed with money has anybody else.
And the only problem is that the partners losing out on the money grab are kind of pissed….
Sometimes lawyers at Cadwalader are the victims of theft. And sometimes they’re the ones doing the stealing.
Here’s the promised follow-up to yesterday’s post about Cadwalader’s successful raid on the energy law practice of McDermott Will & Emery. It’s big news in Biglaw. As of now, nine partners are moving — Paul Pantano, Karen Dewis, Greg Lawrence, Greg Mocek, Tony Mansfield, Ken Irvin, Rob Stephens, Daryl Rice and Doron Ezickson — but if they’re followed by associates, a few dozen lawyers could be involved.
In an email sent out on Wednesday by MWE leaders Jeff Stone and Peter Sacripanti, reprinted in full after the jump, McDermott tried to minimize the losses. Stone and Sacripanti pointed out that “[t]his group of partners focused mainly on one aspect of our overall energy practice, which was commodities and derivatives trading for financial clients,” and that “the departing partners’ total collections in 2010 amounted to about three percent of overall firm revenue.”
Still, three percent of total MWE revenue is nothing to scoff at. In 2009, McDermott had total revenue of $829 million, according to the American Lawyer. Assuming that 2010 revenue is similar (the Am Law numbers aren’t out yet), three percent amounts to $24.87 million. Dividing that out over nine partners yields revenue per partner of about $2.8 million — not a bad book of business.
Last week, Hogan Lovells announced its associate bonuses. It’s the first bonus season for the firm since the merger of Hogan & Hartson and Lovells. Unfortunately for some associates, the transatlantic deal apparently did not pay off for them at bonus time.
The memos are individualized, but the associates who have reached out to Above the Law are not happy. Here’s one tipster’s report:
Most people with whom I’ve spoken received $2500-$5000 less than the Cravath-model for billing around 2150 (our hours requirement is 1950). This is true no matter the class year.
A number of associates left the office as soon as the memos came out because they were so disgusted. I predict a mass exodus of associates leaving HoLove this coming year, because a lot of people have been pissed about the hours anyway and these bonuses are just insulting.
But according to a Hogan Lovells spokesperson, the HoLove bonuses matched the market. So why are associates upset?
(Please note that we’ve added some UPDATES after the jump.)
What are the differences between Washington lawyers and New York lawyers? One broad generalization — crude, but largely accurate — is that D.C. attorneys are all about power and prestige, and NYC attorneys are all about money.
It’s certainly true that, in the Biglaw world, New York-based law firms generally enjoy higher profits per partner than Washington-based firms. But D.C. attorneys aren’t doing too badly for themselves.
The latest issue of Washingtonian magazine, available now on newsstands, is the salary survey issue. It’s all about who makes what in the D.C. metro area, from the president to police officers to pediatricians.
And given the proliferation of lawyers in the nation’s capital, there’s a whole section on lawyers and judges. Thankfully for us, Washingtonian has made this portion available online….
Peter Crossley of Hammonds and James Maiwurm of Squire Sanders
A hot trend for the law firm world in 2010: transatlantic mergers. This year we’ve seen the creation of Hogan Lovells, from Hogan & Hartson and Lovells, and SNR Denton, from Sonnenschein and Denton Wilde. Today we learn of a third U.S./U.K. law firm merger: the combination of Squire, Sanders & Dempsey and the British firm of Hammonds, to form a behemoth with 1,275 lawyers in 37 offices and 17 countries (according to the merged firm’s new website).
The merger was approved by both partnerships over the weekend and will take effect on January 1, 2011. The combined entity will be in the top 25 firms by number of lawyers, with gross revenue of $625 million (based on 2009 figures).
As you may recall, not everyone was a fan of this merger. The famously outspoken John Quinn of Quinn Emanuel, for example, characterized it as “[t]wo rocks that think if they hug each other tight enough they won’t sink.”
But enough of the Debbie Downer sentiments. Let’s look at all the positive aspects of this transaction, shall we?
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: firstname.lastname@example.org.
It’s that time of year again when JDs are starting to apply for 2L summer jobs and 2L summers are deciding which practice area to focus on.
For those JDs with an interest in potentially lateraling to or transferring to Asia in the future, please feel free to reach out to Kinney for advice on firm choices, interviewing and practice choices, relating to future marketability in Asia, or for a general discussion on your particular Asia markets of interest. This is of course a free of cost service for those who some years in the future may be our future industry contacts or perhaps even clients.
For some years now Kinney’s Asia head, Evan Jowers, has been formally advising Harvard Law students with such questions, as the Asia expert in Harvard Law’s “Ask The Experts Market Program” each summer and fall, with podcasts and scheduled phone calls. This has been an enjoyable and productive experience for all involved.
Whether you’re fresh off the bar exam or hitting your stride after hanging a shingle a few years ago, one thing’s for certain: independent attorneys who start a solo or small-law practice live with a certain amount of stress.
Non-attorneys would think the stress comes from preparing for a big trial, deposing a hostile witness, or crafting the perfect contract for a picky client.
But that’s nothing compared to the constant, nagging, real-life kind, the kind you get from the day-to-day grind of being a law-abiding attorney.
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Additional information can be located on our website, at www.sgtlaw.com.