Partners With Issues

Bullseye!

The last time we wrote about a partner from Cozen O’Connor, he ended up with a “huge [bleep]hole” after sending a string of allegedly abusive emails to opposing counsel. Today, we’ve got another Cozen partner whose tale of woe with the New York court system may be liable for giving a New York judge a “huge [bleep]hole” of his own.

John McDonough, the Cozen partner in question, has accused Brooklyn Supreme Court Justice Arthur Schack of some pretty untoward actions, and has filed papers to get the judge to recuse himself from a $100 million civil case against Duane Reade.

But what could have been so offensive that it would warrant calls for a judge’s recusal? Apparently McDonough isn’t a fan of being referred to as a “piece of sh*t”….

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I recently participated in a podcast for the ABA Journal on the subject of what drives partners nuts. (Here’s a link to where previous podcasts can be found. The session in which I participated won’t be posted until September 10.)

Because the podcast was supposed to analyze “what drives partners nuts,” I naturally prepared a list of things that drive partners nuts. But when we taped this session, the conversation veered away from its original focus and covered other subjects instead. That leaves me with a list of the things that drive law firm partners nuts — perfect material for a blog post! And, because this column often focuses on life as an in-house lawyer, I’ll throw in an added bonus: the in-house analogues to the things that drive partners nuts.

How can an associate drive a law firm partner nuts? Let me count my top three ways . . .

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As we mentioned yesterday in Morning Docket, Judge Marcia Gail Cooke (S.D. Fla.) recently issued an omnibus order on multiple motions for sanctions in the high-profile case of Coquina Investments v. TD Bank. The plaintiff, Coquina Investments, moved for sanctions related to various alleged discovery violations.

At a contempt hearing held back in May, Judge Cooke heard testimony from employees of TD Bank and current and former lawyers from Greenberg Traurig, which previously represented the bank. She took the matter under advisement — but not before saying things like, “It is hard for me to describe in words the difficulty throughout this trial related to documents and discovery.”

Now Her Honor has ruled. What did she decide?

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Happy Fourth of July week. If you’re like me and didn’t take vacation this week, I hope you enjoy not being hassled and shopping online. If you live in D.C., I hope you are appreciating your nice, employer-provided air conditioning.

Seeing as it’s almost America’s birthday, I’m saddened to have to tell you that our president has had to withdraw his nominee to be the next ambassador to the Netherlands. I know, it’s a terrible blow, please consult with a grief counselor if you are having trouble dealing with this news.

President Obama’s nominee for this distinguished post withdrew from consideration after he was charged that most American of crimes: getting liquored up, driving around, and allegedly resisting arrest.

That’s a party in the U.S.A. It’s definitely not a Netherlands party.

And I did I mention that our guy is a Biglaw partner?

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It has been a few days since our last detailed story about the largest law firm bankruptcy in history. So let’s check in on the Chapter 11 proceedings of Dewey & LeBoeuf, currently pending in bankruptcy court for the Southern District of New York.

There have been a few recent developments. For example, as we mentioned in Morning Docket, Dewey is being counseled in bankruptcy by some pretty pricey advisers.

How expensive are we talking?

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Ed. note: This is the second column by our newest writer, Anonymous Partner. In case you missed his first post, check it out here.

If “Partner” is your only or most important title, quite frankly you are missing out. For me, it’s “Dad,” as my little man likes to say, or simply “Daddy,” to my little princess. Before you freak out about how not everyone wants children and the world is overpopulated — relax. Father’s Day just went by, and it just simply is not the time for anything other than celebrating fatherhood.

None of us would be here without a father, and I submit that each of us has been shaped by our father, whether he was a model dad, an absent one, or simply some squiggly molecules in a petri dish. For those blessed to have had an engaged father, the goal is to emulate and if possible surpass his example, while those who went without should work that much harder to make sure that their own children have something other than the pain of absence to carry with them. Biglaw partners are acutely aware of the value of time, and most that I have met wish they had more of it to give to their children.

Of course, being a dad in Biglaw means sacrifice — the financial and professional rewards come at a cost….

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I worked for twenty years at the darkest of the black-box compensation law firms: No one knew what anyone else was being paid, and the firm forbade talking about compensation. Here’s the curious part: We obeyed.

I saw the raised eyebrows of partners considering moving laterally to my firm: “Right — no one talks about compensation. You guys must talk about it all the time, just like we do at my firm. It can’t be a secret.”

Wrong. We really, honest-to-God did not talk about compensation. The subject just didn’t come up.

I’ve heard second-hand that this is true for other black-box firms, too. The managing partner of a different large, black-box comp firm recently told one of my colleagues: “Once you take compensation out of the limelight and forbid people from talking about it, then people stop talking about it. The subject drops off the table.”

That sets the stage: At firms where lawyers are permitted to talk about each other’s compensation, they do. And at firms where lawyers are prohibited from talking about compensation, they don’t.

Riddle me this: In corporate law departments, we are not prohibited from discussing each other’s compensation, but we don’t do it anyway. Why is that?

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For a litigator, DLA Piper partner Laura L. Flippin didn’t do herself any favors on the stand.

As we mentioned in Non-Sequiturs last night, Judge Colleen K. Killilea of Virginia’s 9th Judicial District accused Flippin — an ATL fan favorite, and former lawyer of the month — of lying under oath. Judge Killilea then found Flippin guilty of public intoxication.

We first wrote about Laura Flippin back in October, when she was arrested for public intoxication after an event for her undergraduate alma mater, William and Mary. Police reports claimed that Flippin blew a .253 BAC and needed help standing up.

But when she was on the stand, here’s what she told the judge about how much she had to drink….

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Last week, the New York Times, the Wall Street Journal, and the American Lawyer all mentioned an unusual debt in the bankruptcy case of Dewey & LeBoeuf. A former D&L associate, Emily Saffitz, was listed as being owed $416,667 — a sum big enough to put her in the top 20 unsecured creditors of the firm. This was apparently due to a “severance arrangement.”

Why did Dewey agree to pay an associate from the class of 2006 more than $400K in severance? According to the Times, Saffitz received this severance agreement after she “complained over how she was treated by a former Dewey partner and told the firm’s management.” According to the Journal, she filed “a complaint regarding sexual discrimination by a Dewey partner who is no longer with the firm.”

Inquiring minds want to know: Who was the partner in question? And what did he allegedly say or do to Emily Saffitz?

Finding out such details is difficult. Settlements in cases of alleged sex discrimination or sexual harassment often contain non-disclosure or non-disparagement provisions that prevent the parties from speaking about what took place.

So we didn’t expect we would ever find out which former Dewey partner triggered complaints from Emily Saffitz. Until, well, he emailed us….

Multiple UPDATES, after the jump.

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As we mentioned earlier today, retired partners of Dewey & LeBoeuf received some potentially good news. These former partners, whose unfunded pensions were supposed to be funded out of firm profits, will have a voice in the firm’s bankruptcy proceedings. As reported by the WSJ Law Blog and Am Law Daily, the U.S. trustee’s office has appointed an official committee of former partners (in addition to the standard official committee of unsecured creditors). The four ex-partners on the committee are David Bicks, Cameron MacRae, John Kinzey, and John Campo.

What prompted the move? As legal consultant Edwin Reeser, whose analysis of the Dewey situation recently appeared in these pages, told the WSJ, “The retired partners have uniquely separate interests which warrant consideration as a special class of creditors.”

It’s nice that they have a seat at the table, but will the ex-partners end up with any money at the end of the process? That’s less clear. As Jerome Kowalski, another law firm consultant, told the Journal, “There has never been a law firm bankruptcy that resulted in any payment being made to the equity partners… They’ll have zero sway other than perhaps some moral imperatives, and moral imperatives don’t have much play in bankruptcy courts.”

The unsecured creditors might have more luck than the former partners. Who’s on the unsecured creditors’ committee?

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