Trendspotting

Hewlett-Packard Picks New In-House Lawyers Fresh Out of Law School

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In the movie The Untouchables, Sean Connery counsels Kevin Costner: “If you don’t want to get a rotten apple, pick one fresh off the tree.” Apparently, Hewlett-Packard is taking the same advice; instead of hiring in-house attorneys seasoned in Biglaw firms, HP is getting its next crop of legal help directly from the nation’s top law schools. The Recorder reports (gavel bang: ABA Journal):

This fall, Hewlett-Packard is going where few corporate law departments have gone before: hiring fresh graduates for full-time in-house positions.

Four first-year associates will join HP in Palo Alto, Calif., in September — one from Harvard, two from Northwestern and one from UC-Berkeley. The associates will earn $115,000 per year plus a $15,000 signing bonus and undergo a training program similar to the type installed recently at firms like Howrey and Orrick, Herrington & Sutcliffe.

We just did a report about how the lawyer training programs offered by firms like Howrey weren’t catching on. But perhaps HP can offer the renowned better lifestyle of in-house attorneys to buttress their below Biglaw market salary?

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New Tuition Trend: Will 1Ls be Willing to Subsidize 3Ls?

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Last week, we set up an open thread for people to discuss the next round of tuition hikes at their law schools. Sadly, it appears that many schools are indeed raising tuition despite the soft economy for legal jobs. Once again, the cost of legal education is proving to be recession proof.

But another, even more disturbing trend could be on the way. At a few schools, the new plan seems to be raise tuition on entering students by a higher percentage than the tuition on returning students. To keep the money rolling in, it looks like this next crop of 1Ls will be subsidizing their jobless, 3L brethren.

The situation at the University of Houston Law Center could be a harbinger of an even darker future for the class of 2013…

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All the Rage: Fashion Design Litigation?

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do not duplicate stamp.jpgWhat should be done to protect fashion designers from copycats? Law professor Gerard Magliocca would probably say nothing, but other observers are more sympathetic to the designers. Law profs Scott Hemphill (recently married) and Jeannie Suk (half of celebrity couple Feldsuk) propose what they call “the squint test.”
Although fashion designs don’t currently enjoy copyright protection, designers who feel they’ve been ripped off do have other options. They can try suing under a theory of trade dress infringement, which is exactly what some of them have been doing.
Trade dress litigation over fashion designs seems as ubiquitous this season as thigh-high boots. Alexander McQueen recently sued Steve Madden, claiming that Madden’s Seryna peeptoe bootie is a ripoff of McQueen’s Faithful model (see for yourself here). Meanwhile, Forever 21, the fashion retailer known for cheap knock-offs, umm, affordable interpretations of designer fashion, has settled a lawsuit brought by Trovata, the Newport Beach clothing company. Trovata claimed that Forever 21 was copying its striped tees, sweaters and blouses.
You can read more, compare the designs, and comment, over at Fashionista (links below).
McQueen Sues Madden: Halle-f*&%#ng-lujah [Fashionista]
Settled & Stuff [Fashionista]

Bryan Cave Offers Incoming Associates ‘Go Away’ Money

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Bryan Cave logo.jpgMy friends, we have a trend. Bryan Cave has become the third firm we know of to offer its incoming associates money to simply go away instead of starting at the firm.
Tipsters report that the firm is offering some associates $70,000 to “walk away” instead of showing up for work. That’s the carrot. This tipster reports the stick:

[A Bryan Cave letter] stated that they are unable to guarantee a start date at this time .. The letter [also] said was that they are unsure if they will need any first year associates before 2011. Shady, shady, shady…

Stroock — the first firm to offer incoming associates go away money — offered $75,000. Pillsbury offered $60,000. So Bryan Cave is keeping up with the market for these kinds of things.
After the jump, a reader poll, and Bryan Cave’s strategy for incoming associates.

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The Paper(less) Chase

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paper documents paperless office stack file folders.jpgBack when we worked at a law firm, one partner was obsessed with the concept of the “paperless office.” He wanted to have as many documents as possible scanned and stored electronically, in order to eliminate any unnecessary use of paper. It was a bit OCD of him, and his jihad against paper was viewed with mild amusement around the firm.
Perhaps this partner was ahead of his time. Back in 2006, law firms were described as the “last frontier in going paperless.” But now the trend is moving strongly in the direction of a paperless world. These days it seems that everyone wants to go commando.

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Open Thread: Is the ‘Bar Trip’ Barred By the Recession?

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post bar travel scaled back.jpgNow that aspiring lawyers have taken the bar exam, they can relax and try to forget about it until the fall, when results come in. One way of relieving stress is “the bar trip”: a post-bar exam vacation to an exotic locale, for sun, surf, or snow, depending on one’s travel preferences.
The bar trip — the last hurrah before immersion into the grim realities of law firm life — is a tradition among law grads. But we’re hearing that the recession may be interfering with the tradition this year. With Biglaw start dates pushed back, and talk of lower salaries running rampant, law grads may be feeling less celebratory this year.
Purely anecdotally, law grads have told us that they’re scaling back. They’re not going on extravagant bar trips, and in some cases, not going on bar trips at all.
Are we only friends with fiscally conservative types, or is this actually a trend this year? Are you thinking of a “staycation,” or are you still planning a trip around the world?
If you’re traveling, please tell us where you’re heading and for how long. If you are heading out of the country, we hope you’ll be sure to spend some time in internet cafes checking out the latest ATL news.
Earlier: Post-Bar Travel: Open Thread

Funemployment Rate Reaches 9.4%

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Typical unemployed associate.JPGMany have noted that the jobless rate hit 9.4% today, and many are calling that excellent news. Bloomberg reports:

The U.S. lost fewer jobs than forecast in May, reinforcing signs that the deepest recession in half a century is starting to abate….
“The recession is very close to an end,” said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts, whose payrolls forecast matched the closest estimate in a Bloomberg News survey. “The labor market is still pretty awful, but vastly better than it was.”

Did anybody else just hear Kevin Bacon screaming “all is well”?
But maybe the new numbers are positive. The L.A. Times tells us about the happy experiences of the “funemployed”:

Michael Van Gorkom was laid off by Yahoo in late April. He didn’t panic. He didn’t rush off to a therapist. Instead, the 33-year-old Santa Monica resident discovered that being jobless “kind of settled nicely.” …
What most people would call unemployment, Van Gorkom embraced as “funemployment.”
While millions of Americans struggle to find work as they face foreclosures and bankruptcy, others have found a silver lining in the economic meltdown. These happily jobless tend to be single and in their 20s and 30s. Some were laid off. Some quit voluntarily, lured by generous buyouts.

Not to have a type A meltdown, but what the hell are these people talking about?
I call shenanigans, after the jump.

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Job-seekers Paying Recruiters: Hot New Trend?

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craigslist recruitment above the law.jpgEarlier this month, duty called us to a midtown Manhattan bar to cover a Pink Slip Party for our sister site, Dealbreaker. Geared toward those laid off from Wall Street, the “party” was a depressing scene meant to bring job-seekers together with potential employers. There were more recruiters than potential employers around, though, and there were lines of people in suits waiting to sit at booths to go over their resumes with the recruiters.

Job seekers are similarly disadvantaged in the legal market, thanks to continuing layoffs. One unemployed lawyer is trying a novel new approach. He wants to turn the headhunter payment arrangement inside out, and pay a recruiter to find a job for him. From his Craigslist ad:

This economy sucks. It probably sucks for recruiters too! Therefore I want to make life a little more interesting. This may not be a huge amount of money, but if you’re already on commission it’s more than usual I imagine.. For any recruiter that helps me a permanent position as an associate attorney in relevant areas (defined below) I will pay the following immediately:

$60,000- $69,999 per annum I will pay you $3,000

$70,000 – $90,000 per annum I will pay you $4,000

$100,000 + per annum I will pay you $5,000

I am also looking for contract work in the short term. I will pay $300 for anything which is supposed to last more than a month.

This seems to make sense. Sometimes job seekers are advised to avoid working with a recruiter because it makes them more expensive, since the employer has to pay the recruiter a fee on top of the new hire’s salary. If the new hire foots the recruitment bill, the game changes.

Some people don’t like this idea. The Craigslist poster, who asked to remain anonymous, has had some angry responses, after the jump.

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New Facebook Application: “You’ve been served”

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Facebook logo MySpace Friendster Abovethelaw Above the Law blog.jpgYou can use Facebook to accumulate friends, poke strangers, and tag photos. And if you’re a lawyer in Australia, you might be able to use it to serve a complaint.

Our legal friends in the Land Down Under have made an interesting ruling. From the Associated Press:

A court in Australia has approved the use of Facebook, a popular social networking Web site, to notify a couple that they lost their home after defaulting on a loan.

The Australian Capital Territory Supreme Court last Friday approved lawyer Mark McCormack’s application to use Facebook to serve the legally binding documents after several failed attempts to contact the couple at the house and by e-mail.

The lien notice could have been sent by Facebook messaging–the judge specified that posting to a Wall was not kosher–but the couple got wind of the plan in news reports and took their profiles down.

We love rulings that legitimize the use of Facebook in the workplace. Next up: legal notice via gchat?

Australia OKs Facebook for serving lien notice [Associated Press]

Does Anybody Understand The Emergency Economic Stabilization Act

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bailout water confusion.jpgWe previously reported that firms are starting to launch global financial crisis practice groups.

But we wondered what (if anything) those groups would be able to do for their clients.

According to the National Law Journal, clients are just as confused about the bailout as everybody else. Even the ABA doesn’t actually know what to make of what Congress just passed:

Carlton Fields, which as nearly 300 lawyers throughout Florida and Georgia, is forming a “recovery task force” comprised of 15 to 20 lawyers. The task force was first proposed to be called a “bailout task force.” It will focus on “what kinds of opportunities will be available with the congressional plan,” said Jay Steinman, chairman of the firm’s Miami real estate and finance group.

The firm has been asked by the American Bar Association to create a “white paper” on what the bailout plans means. The analysis will be completed this week by Carlton Fields partner Sandra Porter, and the firm will do weekly updates.

Is it possible that a large part of the legal community is waiting for Carlton Fields to tell them what is actually happening? It’s been a weird month.

In face of economic crisis, law firm clients range from panicky to opportunistic [National Law Journal]

Earlier: New Practice Groups Coming to a Firm Near You

We’re Super: Thanks For Asking

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ropes gray logo.JPGLast week we told you that Jenner & Block held a firm-wide pep talk to assure associates that everything was going great.

Apparently, this is the new trend. Terrified associates are being told that they have nothing to fear, for now.

Last week Ropes & Gray’s chairman Brad Malt sent out this email:

We’re living in extraordinary times, and I know many of you are concerned about what the current turmoil in the financial markets might mean to us here at Ropes & Gray. I’d like to offer some thoughts on why we are well positioned to weather the turbulence in the marketplace.

Our firm is over 140 years old, in no small part because we always build for the long term. We have weathered many recessions, starting with the Panic of 1873, and we have always emerged stronger. Today, we possess many competitive advantages, including diversified practice offerings and a diverse client base. Thankfully, we do not depend for our bread and butter on the kinds of companies or markets that are most troubled right now. While recent events have felt unsettling for many people, nothing that is happening should distract us from continuing to execute our strategic plan and deliver excellent client service.

The recent turmoil in the financial markets has also presented the firm with important opportunities to advise clients, including some of the companies affected by recent events. Among the many examples, we obtained a temporary restraining order for our broker-dealer client, Ameriprise Financial Services, in the first case involving a money market fund to “break the buck.†An extraordinary cross-disciplinary and cross-office team reached a multi-billion dollar agreement to purchase Neuberger Berman’s investment management business and Lehman Brother’s fixed income and alternative asset businesses. We are representing various senior officers of major financial institutions in investigations of sub-prime lending activities and related class action lawsuits. And we have advised numerous hedge funds, CDO funds, mutual funds and other clients on other aspects of the market situation, including analysis of distressed securities, advice about credit default swap counterparties, advice about the new short-sale restrictions, and bankruptcy rules.

In the longer term, we are very well positioned to take advantage of opportunities that will arise from the changing market environment, and we continue to invest in lawyers and staff to help us do so. We were delighted recently to welcome our associate Class of 2008, and we actively continue to hire for summer 2009 and beyond.

To be clear, we are not immune to what’s happening in the wider world. However, I believe the strengths we have built in our firm, our proven agility in addressing changing market landscapes, and the dedication and high caliber of you, our people, will enable us to withstand the short-term market challenges. As always, we are grateful for your continuing hard work and commitment.

This letter reads somewhat like DPW and Debevoise emails where those firms touted their post-meltdown successes.

O’Melveny & Myers shows firms how to send a spooky reassurance email after the jump.

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When Is A Gas Holiday Full Of Hot Air?

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lawyers hate gas.JPGAtlanta-based law firm Balch & Bingham has decided to let their employees work four days a week in response to high gas prices and gas shortages in some areas. People can take off Tuesday or Wednesday or Thursday, once the firm figures out how to shuffle things around so that there is adequate coverage on all days. According to the ABA Journal:

Managing partner T. Joshua R. Archer says the idea came to him on Tuesday, as he was walking the halls and overheard a secretary ask the office manager if she could leave early to get in line at a station that she’d heard had gas to sell.

“It seems like a good idea from an efficiency and productivity standpoint,” he tells the legal publication, pointing out that it should be easier to find gas when others are working. Plus, having a full tank reduces stress because it’s one less thing to worry about.

Sounds great. We’re sure that everybody who lives in a commuter suburb can appreciate laying off the gas one day a week.

But there’s a catch:

They also are expected to work the same amount of hours, over four days, as they ordinarily would over five.

Come again?

For the staff that could take advantage of this “perk,” how does a ten-hour day reduce stress?

Here was an opportunity for Balch & Bingham to do something really nice for their employees. You could have given them a half-day off, or a gas credit, or something. But instead it seems like Mr. Archer just came up with a way to get a nice press story without actually helping his employees or costing the firm a single cent.

Even Terri Garr’s “Schooner Tuna” boss was able to figure out the difference between a cheap gimmick and a helping hand.

New Law Firm Perk: Work Shorter Week Until Gas Shortage Ends [ABA Journal]