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?
It’s interesting to see how the pace of the Dewey story is shifting. We’re moving from the breathless breaking of news into a period of longer pieces focused on analysis and narrative. This makes sense, given that most of the major events have already transpired (with the exception of formalities that will be big news if and when they do occur — e.g., an official vote of dissolution, a filing of bankruptcy, etc.).
So let’s do a more comprehensive review of the latest Dewey stories from around the web. We bring you more theories of blame, more partner departures, and more revelations about the personal life of former chairman Steven H. Davis….
In terms of firm finances, Paul Hastings had a perfectly decent 2011. Revenue and profits were fairly stable, according to Am Law Daily. Gross revenue fell by 2 percent to $884 million, and profits per partner fell by 1.3 percent to about $1.97 million. On the brighter side, revenue per lawyer surpassed the $1 million mark for the first time, hitting $1.01 million.
So how are those revenue-generating worker bees being compensated? Bonuses are out at Paul Hastings. How are PH associates reacting?
Don’t get me wrong, I don’t necessarily think that it’s wrong to brag about receiving an offer in front of your friends, family, and total strangers. I personally subscribe to the Major League theory that you don’t want to be dancing in front of somebody who just died, but I understand that most of the kids these days have never even seen the movie I just referenced.
For the millennials, bragging comes so naturally they don’t even realize when they’re doing it. It’s like their biological imperatives are to survive, reproduce, and post evidence of it on Facebook.
Which is fine. I mean, just because somebody is bragging doesn’t mean you have to care. For instance, today we’ve got a kid bragging about getting an offer from a particular Biglaw firm. Some people will be envious; other people are going to make jokes about coat hangers. To each his own….
Last month, Juliette Youngblood, an ex-partner at the elite California law firm of Irell & Manella, filed suit against her former firm. In her lawsuit for sex discrimination and wrongful termination, Youngblood advanced a whole host of salacious allegations — including a report of sexual harassment by Morgan Chu, arguably the nation’s #1 intellectual-property litigator.
Irell did not respond to the lawsuit at the time. Now it has, in a blistering 22-page filing that calls Youngblood’s claims “meritless” and “utterly false, complete fabrications manufactured out of whole cloth.”
What does the firm have to say about the specific claims made by Youngblood — such as the allegation that a drunken Morgan Chu made inappropriate and offensive comments to her at a firm happy hour, including remarks about her physical appearance and about “objects entering [Youngblood's] body”?
And what do ATL sources, including readers familiar with both Youngblood and Irell, think of the situation?
When I was in Biglaw, I always dreamed of taking part in a beauty contest. I do not really understand how it goes down, but it sounded very exciting (at least more than my fifty-state-survey.) According to YouTube, it looks something like this.
When I went to the small firm, I did not hear mention of beauty contests. Clients mostly came through referrals, and any client pitches were much more informal. For instance, I heard a story about two partners trying to get an FLSA class action, so they went to the employer’s factory and donned the poultry processor workers’ uniforms (and perhaps touched some chicken parts going down the conveyor belt). Unlike the stories of the Biglaw beauty contests, there were not lawyer teams from several other small firms lined up in their chicken-suits.
If a team from Skadden or Sidley were lined up in chicken-garb, however, how would the small-firm attorneys best position themselves to win the contest? I asked some Biglaw-turned-small-firm attorneys for their best tips….
Just about all summer associate programs at large law firms have wrapped up by now, and 100 percent offer rates rolled in from firms across the country. That’s great news, but we were more than a little disappointed that we didn’t hear any lurid tales of summer associates gone bad this year.
Sadly, we didn’t hear about any fabulous summer associate events, either. With the high offer rates we’ve seen, we have to assume that there was enough money to go around for firms to host some excellent events, right?
Well, now that you’ve got your offer in hand (hopefully), you can spill the beans on what went down at your firm this summer….
Since our initial call for information about summer associate offer rates at major law firms, a number of people have contacted us with reports. As it turns out, there’s a lot of good news floating around out there for summer associates.
This leads us to two conclusions:
Biglaw firms only brought in people they could actually hire.
You class of 2011 people are some boring individuals.
Honestly, listening to your summer stories is like looking at the Facebook photos of a Mormon school group’s vacation to Amish country. We know that people are worried about getting offers in this tough market, but the risk-aversion of the summers this year borders on cowardice.
Live a little, have a drink, ask her for her number. It’s a job interview, not an audience with the Pope.
In any event, 100% offer rates abound. Let’s round them up….
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.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!
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.
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.