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Diversity Scorecard 2009: A New View of Success

The Minority Law Journal

When we published last year's Diversity Scorecard, we said this year's edition would take a more nuanced approach, which we predicted would shake up the rankings. And so it has. The churn is courtesy of a formula that gives more credit to law firms that have increased racial diversity among their partners. Due to the new emphasis on lawyers at the most senior levels, some firms have lost their customary berths on our list. One firm soared from No. 47 to No. 4, while another plummeted from No. 6 to No. 57.

Judge McConnell Leaving 10th Circuit Bench

The National Law Journal

Michael McConnell, one of the most influential federal appeals court judges in the nation, is stepping down from the 10th U.S. Circuit Court of Appeals to become director of the Constitutional Law Center at Stanford Law School. He is best known for his writings on the First Amendment, especially its religion clauses. Although categorized as a conservative -- he called Roe v. Wade "an embarrassment" -- McConnell clerked for liberal Justice William Brennan Jr. and criticized Bush v. Gore.

Amid Some Tears, Souter Bids Adieu to 3rd Circuit

The Legal Intelligencer

In a farewell speech that brought tears to a few eyes, U.S. Supreme Court Justice David Souter invoked a 19th century English poet and legendary federal appeals Judge Learned Hand as he implored the judges and lawyers of the 3rd Circuit to derive a sense of lasting fulfillment from the work they do every day. "We are members of a great guild ... that stretches back to the Middle Ages," Souter told his audience.

Fenwick & West Lays Off 15 Associates, 7 Staff

The Recorder

Amid the avalanche of attorney layoffs this winter, Fenwick & West stood alone when it let staff go but didn't cut any of its lawyers. On Tuesday, management at the 300-lawyer firm changed course, laying off 15 associates and seven staff, mainly in the corporate department. Laid-off associates and staff were told individually, and the news was delivered to the whole firm in a morning voicemail message. The attorneys are getting four-month severance packages.

SEC Charges Lawyers in Pump-and-Dump Scheme

The National Law Journal

The Securities and Exchange Commission on Tuesday charged two California-based attorneys with executing fraudulent legal opinions in a pump-and-dump scheme. Albert Rasch Jr. and Kathleen Novinger, of Albert J. Rasch & Associates, allegedly executed at least 24 bogus opinion letters, effectively lifting restrictive legends on unregistered shares of Mobile Ready Entertainment Corp. and allowing the sale of more than 22 million shares of the company's stock in violation of rules governing the conversion of restricted stock.

Orrick Tightens Its Grip on Capital

The Recorder

Partners who leave Orrick, Herrington & Sutcliffe aren't getting their money back for a while because of a new loan requirement by the firm's bank, according to the firm and several former partners. A letter sent to former partners said that Orrick had amended its "primary credit agreement with our banks" and that a new provision meant repaying partners at the usual time would cause it to default on the loan. Orrick calls the change "standard," but two industry experts say it's not something banks usually require.

Former New Jersey Prosecutor Enters Plea Deal on Prostitution-Related Charges

New York Law Journal

More than two years after being accused of running a New York-based call-girl ring, a former Assistant U.S. Attorney has been allowed to plead guilty to two misdemeanor counts under a deal that spares him any jail time. Paul Bergrin, formerly with the U.S. Attorney's Office in New Jersey, was accused of taking over the operation of a $1,000-an-hour escort service after its manager was arrested in 2005. Under the agreement, Bergrin will draw three years' probation as long as be pays $50,000 in forfeiture when sentenced.

MoFo (Finally) Announces Associate Deferrals

The American Lawyer

Better late than never seems to be Morrison & Foerster's MO for deferrals. In April, MoFo informed soon-to-graduate hires that it would announce revised start dates by early May. Monday, the firm officially released the details: 40 percent of incoming associates will start in April 2010, while the rest of the first-year class will begin work in November of this year. Associates with deferred start dates will get $5,000 a month, plus bar stipends, and reimbursement of health insurance premiums of up to $500 per month.

Pre-emption Card Played Successfully in $45 Million Anti-Spam Case

The American Lawyer

The federal pre-emption doctrine fared well in anti-spam litigation Monday. A California Superior Court judge granted a summary judgment motion by Internet ad company ValueClick, which was sued by Internet service provider Hypertouch for allegedly sending users 45,000 e-mails containing false claims. The winning argument, made by ValueClick's lawyers at Gibson, Dunn & Crutcher, was that Hypertouch's state law claims were pre-empted by the federal CAN-SPAM Act because Hypertouch had not demonstrated fraud or deception.

Federal Suit Alleges 3M Practiced Age Discrimination

The National Law Journal

A group of former and current 3M employees are alleging the Minnesota-based company has discriminated against employees older than 46 in performance evaluations and forced out older employees, according to a suit filed Tuesday in California federal court. The federal case mirrors a state action in Minnesota. A class was certified in that action last year, but last month the Minnesota Court of Appeals reversed and remanded and ordered additional proceedings on class certification.

Milbank Confirms Layoffs of 49 Associates, 40 Staff

The American Lawyer

Milbank Tweed Hadley & McCloy on Monday laid off 49 associates and 40 staff, a firm spokesperson has confirmed to The Am Law Daily. The cuts represent an 8.4 percent reduction of the firm's lawyer ranks. A tipster to the blog Above the Law, where the layoffs were first reported, noted that no first-years were let go, and those affected were told the moves are due to a lack of work and not to poor performance. The firm provided no details about the job cuts.

Souter's Retirement Timing: Was It Age or Politics?

The National Law Journal

Supreme Court Justice David Souter, when asked if he would have retired now if Republican presidential candidate John McCain had been elected last November instead of Barack Obama, reportedly said that he "probably" would. With that answer, Souter does not directly refute commentary that he waited to retire until a president more to his liking than George W. Bush would be in a position to replace him. One expert identifies Souter as "a prime example" of justices who time their retirements for strategic reasons.

Disbarred Lawyer Who Stole $130,000 Gets 3 to 9 Years in Prison

New York Law Journal

A former New York lawyer who admitted stealing $130,000 from her client escrow account to finance a gambling addiction was sentenced last week to three to nine years in prison. Disbarred in 2007, Arelia Taveras admitted taking the money in two videotaped statements, including an apology she posted on YouTube. She pleaded guilty to five counts of grand larceny and one count of offering a false instrument for filing.

Simpson Thacher Recruits Top Clifford Chance Partner for London M&A Push

Legal Week

In one of the most high-profile partner hires by a U.S. firm in London in years, Simpson Thacher & Bartlett has recruited Clifford Chance corporate heavyweight Adam Signy. Simpson Thacher currently has no U.K.-qualified corporate or private equity partners in London, despite links in the U.S. with names such as Kohlberg Kravis Roberts & Co. and The Carlyle Group. Signy has been a partner with Clifford Chance since 1987 and has close ties with U.K. private equity houses, including Candover.

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Berwin Leighton Paisner to Lay Off London Staff With 85 Under Threat

Legal Week

Berwin Leighton Paisner has launched a redundancy consultation that is likely to affect 85 staff in the firm's London headquarters. The firm announced Tuesday that it is reviewing 30 legal, 30 business services and 25 secretarial positions in London. The cuts are expected to affect the corporate, finance and real estate practices, as well as marketing, IT, accounts and human resources. The consultation marks the firm's first round of job cuts in the wake of the economic downturn.

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Frameworks for IT Security

Law Technology News

Lawyers are critical partners to organizations that are coming under increasing scrutiny from government regulation to protect private customer data. Lawyers need a working knowledge of the security frameworks designed to mitigate risks and satisfy regulations.

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Cost-Cutting Clients Put the Squeeze on Law Firms

The American Lawyer

It doesn't take an oracle to predict that in a recession, clients would look to trim legal costs. But clients and lawyers alike say that what is happening now is more of a Freddy Krueger-style bloodletting. And litigators, traditionally thought of as safe from recessionary pressures, are feeling it, too. Clients are demanding deep discounts, creating incentives for litigators to resolve cases more quickly, keeping more lawsuits in house, and, yes, even shedding longtime counsel.

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Associates See Large Firm Salaries Going Down

The National Law Journal

Large law firms are cutting costs anywhere they can, and associate pay is no longer an exception. Seven Washington, D.C., offices have slashed salaries. Others, including D.C. stalwarts like Crowell & Moring, Hogan & Hartson, and Wiley Rein, are cutting pay for associates who don't hit billable hours. Legal consultant Jerry Kowalski expects more firms to experiment with tiered or merit-based pay structures as they look for something other than lockstep. The firms have plenty of incentive for such a move.

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Get a Successful Start as a Solo Practitioner

The Legal Intelligencer

If you've decided to take the leap into a solo practice, regardless of the reasons, you may happily find that being a solo practitioner can be both satisfying and lucrative. Attorneys Ellen C. Brotman and Michael B. Hayes offer some tips for avoiding some of the common ethical pitfalls that busy solo practitioners face. They also have other general advice for practice management, including one major, albeit counterintuitive, key to solo success: Being a solo practitioner doesn't mean going it alone.

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