Occasionally, someone wants me to do legal work outside of my practice area. I tend to refer the potential client to an attorney who can handle it and ask for a referral fee when appropriate. But sometimes it makes sense to work the case myself with outside help — for example, if the work is for an existing client and he cannot afford the referring attorney’s fee. So as a gesture of appreciation to the client, you want to help him for a reduced fee. Or you want to get experience in the area of law that is involved.
And let’s be anonymously honest. Sometimes the case has potential for large attorney’s fees and you want a bigger cut than the firm’s standard referral percentage. It’s hard not to feel bitter when you get a paltry referral fee up front and later learn that the attorney who handled the matter got a half-million-dollar payout.
So today, I want to write about how I typically (but not always) decide whether to refer a case out completely, or co-counsel with someone else. I assume readers are familiar with and will follow the ABA Model Rules 7.2 and 1.5(e) and your state’s versions of these rules. My first priority is to refer a client to a competent attorney, even if it means a smaller referral fee or none at all. But when there are three or more equally competent and business-savvy attorneys competing for your referrals, the size and girth of the compensation package can be appealing…
* Congrats are in order for David Barron. The Harvard Law professor was confirmed to the First Circuit in a close vote (53-45), despite his apparent allegiance to our new drone overlords. [WSJ Law Blog]
* Another one bites the dust: Weil’s London banking leader Stephen Lucas decamped for Kirkland & Ellis. The firm retorted by saying: “We have got 40 finance lawyers left.” Aww, yay for you. [The Lawyer]
* Dean Jack Boger of UNC Law is stepping down, but he’s proud of keeping legal ed affordable. “[B]y relative standards, we’re still doing that,” he said. It’s ~$39K for out-of-state students. [Chapelboro.com]
* O.J. Simpson’s lawyers submitted a gigantic legal doc in an attempt to get him a new trial for his armed-robbery case. Court word limit: 14,000. Words in the Juice’s motion: 19,993. Rules: LOL. [NBC News]
* Partners from Patton Boggs and Squire Sanders may vote on their merger sometime this week. Get ready to say hello to Squire Patton, House of Boggs, Hodorific of Its Name. [Reuters]
* “[E]xcuse me, sir, you may not be here in five years.” Biglaw firms are becoming more “egalitarian” about office space because attorneys have expiration dates. [National Law Journal]
* After a flat year in 2013, and much to Biglaw’s chagrin, “[i]t is going to be harder to sustain year-over-year profitability gains.” Oh joy, time to power up the layoff machine. [Philadelphia Inquirer]
* Tech giants Apple and Google have called a ceasefire in their dueling patent suits in a quest to reform patent law — and so Apple can concentrate all of its efforts on suing the sh*t out of Samsung. [Bloomberg]
* GM’s in-house legal department is being heavily scrutinized in the wake of the car maker’s ignition switch lawsuit extravaganza. You see, friends, people die when lawyers don’t even bother to lie. [New York Times]
* Donald Sterling found a lawyer willing to represent him, an antitrust maven who thinks the NBA should take its ball and go home because “no punishment was warranted” in his client’s case. [WSJ Law Blog]
Kevin Underhill, on his excellent blog Lowering the Bar, points out that Au Bon Pain is being sued for Two Undecillion dollars by a person who probably spends his time writing math equations on the windows of his apartment.
In-house legal jobs are growing in prestige. As our very own Mark Herrmann recently noted, in-house lawyers were once viewed as “the folks who couldn’t succeed at real jobs,” namely, jobs at firms. But that’s no longer true today, Herrmann argued, citing the trend of Biglaw partners leaving their firms for gigs as corporate counsel.
What is behind the growing allure of in-house jobs? Sure, the work is interesting and exciting, and yes, bossing around outside counsel is fun. But improving pay packages also play a role. As you can see from the rankings of America’s best-paid general counsel, GCs at top companies can take home millions.
And those rankings, by Corporate Counsel, focus on cash compensation. In-house lawyers can make many multiples of their cash comp through stock.
Take Vijaya Gadde, Twitter’s general counsel. She became GC less than a year ago, but she already owns tens of millions in TWTR shares, as revealed in recent reporting about the end of Twitter’s IPO lockup period….
* Lawyers for Jones Day got a light spanking in court after sending out some of Detroit’s confidential negotiation documents to its creditors. Quick, blame the doc reviewers. Oh wait, you already did. Nice work. [WSJ Law Blog]
* Cynthia Brim, the judge declared “legally insane” who collected a $182K salary for months without working, was booted from the Illinois bench. She’s the first member of the state judiciary to be removed in a decade. [Chicago Tribune]
* Massachusetts is instituting a $30,000 pay hike for state judges which will prime the pump for pension bumps and retirements. For the love of God, think of the poor ADAs next time, Massholes. [Boston Globe]
* The power of diagramming compels you! If you’re studying for the LSAT, here are tricks you can use when trying to exorcise the demons from the logic games section. [Law Admissions Lowdown / U.S. News]
* Prosecutors want Oscar Pistorius to undergo a psychiatric evaluation in order to urge the court to consider an insanity defense, even though Bladerunner’s legal team doesn’t intend to mount one. [CNN]
Today, we’ve got yet another law student employment train wreck. When you’re searching for a summer job in this economy — or really, any job at all, even after graduation — you don’t have very much bargaining power as to your starting salary. Apparently some law students aren’t familiar with this fact.
Pay close attention, 1Ls, because this is a teachable moment. If you want to negotiate for a higher salary, please don’t tell a law firm managing partner that you consider his firm’s summer wages to be on par with those of a “McDonald’s hourly worker”…
Times are still tough in the legal industry. The industry shed 1200 jobs last month and we hear about layoffs — mostly staff, but some attorneys too — on a weekly basis. On the flip side, Citi Private Bank tells us that Biglaw is growing again with improvements in both demand and billable rates.
Now comes news that some global firms are handing out salary increases and bonuses?
Maybe good times — or at least above-average times — are here again….
Some people go to law school not in the hope of making buckets of cash, but to bring justice to their communities. With long hours and low pay, being a government attorney is a noble pursuit. The catch is that some of these poor souls didn’t know just how poor they’d actually be.
To that end, they certainly didn’t expect that they’d be paid a lower salary than the courthouse custodian, and they had no clue that they’d be members of the working poor.
Which state is allowing entry-level government attorneys to live in squalor?
This Lawyerly Lair is on a pleasant, tree-lined block in Chelsea (click to enlarge).
No, we’re not talking about “law clerk” as in judge’s aide. It’s hard to afford a seven-figure home on a public servant’s salary. We’re talking about “law clerk” as in someone who’s working at a law firm, essentially as an associate, but is not yet an admitted attorney in the jurisdiction.
This “law clerk” and his partner, also a law school graduate, just picked up a spacious Manhattan co-op for a little under $1.7 million. Their housing hunt was chronicled in the pages of the New York Times. Let’s read more about them, and check out the place they finally chose….
If you are considering a virtual law practice, you know that many of today’s solo firms started that way. But why are established, multi-attorney law firms going virtual?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Reduces malpractice risk
Enables you to gather the best attorneys to fit the firm, regardless of each person’s geographic location
Leverages mobile devices and cloud technology to enable on-the-spot client and prospect communication
Transitioning in-house is something many (if not most) firm lawyers find themselves considering at some point. For many, it’s the first step in their career that isn’t simply a function of picking the best option available based on a ranking system.
Unknown territory feels high-risk, and can have the effect of steering many of us towards the well-greased channels into large, established companies.
For those who may be open to something more entrepreneurial, there is far less information available. No recruiter is calling every week with offers and details.
In sponsorship with Betterment, ATL and David Lat will moderate a panel about life in-house and we’ll hear from GCs at Birchbox, Gawker Media, Squarespace, Bonobos, and Betterment. Drinks, snacks, networking, and a great time guaranteed. Invite your colleagues, but RSVP fast, as space is limited.
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.
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.