We were facing increasing financial pressure. So we undertook a substantial restructuring, and that restructuring put us on a solid economic and financial footing, allowing us to do a combination to meet our strategic needs.
Many if not most of the U.S.-based law firms in the 350 to 600 or 700 lawyer-range are feeling a great deal of financial pressure. We felt it more than many because we had a number of very large cases—totaling, at the end of the day, nearly $80 million of a $330 million budget—settle and wind up through normal course. That dramatic decline in revenue exacerbated the pressure on us, but the financial pressure on all law firms today are very significant.
Ed. note: This is the latest installment in a series of posts on lateral partner moves from Lateral Link’s team of expert contributors. Michael Allen is Managing Principal at Lateral Link, focusing exclusively on partner placements with Am Law 200 clients.
Is Bingham about to fall victim to its own strategy?
Since 1994, the firm has leapt from a regional firm that worked almost exclusively with the Bank of Boston to one of the fifty largest firms in the world. The impetus behind this expansion was a series of about ten mergers over the course of sixteen years. The firm picked up productive but possibly struggling boutiques and mid-size firms, growing from a 200-attorney firm in 1994 to an 850+ attorney firm in 2009.
How did Bingham reach its current state? Let’s look at the history.
Hop in the DeLorean and travel back in time with us.
In our two most recent FlashbackFriday posts, we looked at associate compensation in the 1990s. Today we’ll take a break from that topic and mix it up a bit. (We’ll return to cover associate comp in the remaining batch of legal markets at some point in the future.)
The old ball and chain, dischargeable in bankruptcy only in the most limited of cases. Go ahead, try and prove you’ve got a ‘substantial hardship’ preventing you from paying. We dare you.
* Now that a federal judge has classified California’s death penalty as unconstitutional, it’s only a matter of time before the issue reaches the Supreme Court. We have a feeling the justices will likely roll their eyes. [National Law Journal]
* Word on the street is that Bingham McCutchen has got the urge to merge, and has apparently spoken to a handful of potential partners over the course of the past three months. We’ll have more on these developments later. [Reuters]
* As it turns out, it was neither Wachtell Lipton nor Jenner & Block that managed to snag the coveted GM litigation oversight job. Nice work, Quinn Emanuel — you’re considered a “well-respected outside law firm.” [WSJ Law Blog]
* Congrats, Flori-duh, you did something right. A state court judge has ruled that Florida’s ban on gay marriage violated the U.S. Constitution in the latest post-Windsor victory for equality. Yay! [Bloomberg]
* Thanks to their hundreds of thousands of dollars in law school debt, many graduates are considering declaring bankruptcy. Too bad most won’t be able to get their loans discharged. [Connecticut Law Tribune]
The average high temperature for Houston in July is a scorching 94 degrees. It’s one hot legal market.
Figuratively as well as literally. Back in April, for example, we talked about Kirkland & Ellis opening a Houston office — and prying away partners with $5 million pay packages. You don’t need to be a high-powered partner to get in on the fun; even junior to midlevel associates are getting offered signing bonuses when they lateral.
And this hot market is only getting hotter. Who’s the latest major law firm to land in Space City?
* Law firm mergers are on a record-setting pace, with 39 thus far in 2014. Just one “megamerger” was announced in the second quarter (Patton Boggs / Squire Sanders), but hey, we still have half the year ahead of us. [Am Law Daily]
* The doctors who spent the month of June evaluating Oscar Pistorius’s mental health found that he was depressed and posed a potential suicide risk. You’d feel the same if you were facing jail time. [CNN]
* Walgreens will give $180,000 to an ex-employee with diabetes as a settlement after the store fired her for eating a $1.39 bag of chips before paying to fend off a low blood sugar attack. [San Francisco Chronicle]
* Lindsay Lohan is suing Rockstar Games over an alleged character likeness in Grand Theft Auto V. To be fair, the character does kind of look like LiLo circa her “Mean Girls” days. [International Business Times]
* “They aren’t required to hear it, but this is the major social issue of the day.” The Supreme Court will likely hear a gay marriage case soon, and it’ll obviously be a vehement 5-4 opinion. [NBC News]
* But is SCOTUS really so bitterly divided now? Here’s a fun fact: The justices agreed unanimously in 66 percent of this term’s cases, and the last time that happened was in 1940. [New York Times]
* A partner has left the luxuries of earning up to $4.8 million per year at Wachtell Lipton to start his own executive compensation boutique, which we understand is basically like seeing a unicorn. [Am Law Daily]
* The post-merger world at Squire Patton Boggs is similar to the pre-merger world in that partners are still being churned in and out of the firm every other day. Check out the latest ins and outs. [WSJ Law Blog]
* The Fourth of July is coming up, and you know you want to light up some fireworks. Sure, it’s illegal to sell them in your state, but here’s where you can travel to go to buy some to celebrate freedom. [Yahoo!]
The legal industry is being disrupted at every level by technological advances. While legal tech entrepreneurs and innovators are racing to create a more efficient and productive future, there is widespread indifference on the part of attorneys toward these emerging technologies.
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.
We at Kinney Asia have made a number of FCPA / White Collar US associate placements in Hong Kong / China thus far in 2014. Most of such placements have been commercial litigation associates from major US markets, fluent in Mandarin, switching to FCPA / White Collar litigation. Some have already had FCPA experience, but those are difficult candidates for firms to find (this will change in coming years as US firms are now promoting FCPA / White Collar to their 2L summers who are fluent in Mandarin and have an interest in transferring to China at some point).
Legal Week quoted Kinney’s Head of Asia, Evan Jowers, extensively in the following relevant article here.
There is a new trend in the market, though, where mid-level transactional US associates, fluent in spoken Mandarin and written Chinese, are interviewing for and in some cases landing junior FCPA / White Collar spots in Hong Kong / China at very top tier US firms.
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.