JD Journal » economy

Mitt Romney Explains Comment about the ‘Very Poor’

jim — Thu, 02 Feb 2012 00:42:01 +0000

Mitt Romney, the former governor of Massachusetts, said that he is “not concerned about the very poor,” as he cited the social safety net that is in place for that particular segment of the population. He added that he is more focused on the middle class of the United States.

“I’m in this race because I care about Americans. I’m not concerned about the very poor. We have a safety net there. If it needs repair, I’ll fix it,” Romney said following his victory in Florida. “I’m not concerned about the very rich, they’re doing just fine. I’m concerned about the very heart of the America, the 90 percent, 95 percent of Americans who right now are struggling.”

When Romney was pressed about his comments he went on to say the following to CNN reporter Soledad O’Brien.

“Well you had to finish the sentence, Soledad,” he replied. “I said ‘I’m not concerned about the very poor that have a safety net but if it has holes in it, I will repair them.’ The challenge right now — we will hear from the Democrat party the plight of the poor. And there’s no question it’s not good being poor and we have a safety net to help those that are very poor. But my campaign is focused on middle-income Americans.”

“We have a very ample safety net,” Romney explained. “And we can talk about whether it needs to be strengthened or whether there are holes in it. But we have food stamps, we have Medicaid, we have housing vouchers, we have programs to help the poor.”

The programs that he is referring to within the safety net are also struggling from the economic recession. One of those programs, Medicaid, is facing cuts as states are trying to balance budgets as more people are using the system. Lawmakers are also trying to make cuts in food stamps as the price of food continues to rise, despite a larger number of Americans using the system because of the recession.

The policies that Romney wants to put in place call for a five percent cut to non-discretionary spending, which would cause a massive blow to the safety net of the country that he speaks of in his comments. Romney also wants to turn Medicaid into a program that utilizes block grants. He has also talked about putting a cap on spending at 20 percent of the GDP, which would be a major cut.

The comments made by Romney continue a pattern of poorly timed and poorly phrased comments that give his opponents a chance to say that he is out of touch with the recession.

“Don’t try and stop the foreclosure process. Let it run its course and hit the bottom,” he said in Las Vegas in October. Las Vegas was the hardest hit metro area in the country.

Romney also said in January that, “I like being able to fire people who provide services to me” to explain why he favored competition among health insurers. “If someone doesn’t give me the good service I need, I want to say I am going to get somebody else to provide that service to me.”

While on a plane to Minneapolis, reporters asked Romney about his comments once again. Romney replied with:

“No, no, no, no, no, no, no. No, no, no. You’ve got to take the whole sentence, alright, it’s mostly the same. If there are people that are falling through the cracks, I want to fix that.”

“President Obama has destroyed the middle class. His policies have given us a stagnant economy, high unemployment, declining wages, increase in poverty, and record amounts of new debt,” said Andrea Saul, a Romney spokesperson. “President Obama is so detached from what is happening in the real world that he finds it hard to believe an unemployed engineer can’t find a job. President Obama calls the plight of the unemployed ‘interesting.’ Mitt Romney calls it ‘inexcusable.’ We look forward debating President Obama on how his policies have failed the middle class.”

Obama Announces Bid for Re-election in 2012

aostler — Wed, 06 Apr 2011 00:58:24 +0000

On Monday, April 4, current U.S. President Barack Obama announced his bid for re-election in 2012. He said that he wants to finish the job he started in 2008. He made the announcement on a YouTube video.

Since the start of his presidency, millions of Americans are still out of work, yet new jobs are still being added to the economy every day. In the 2012 election, Obama will be evaluated based on his track record in the White House and the things he has and hasn’t accomplished while in office.

Although it is still 20 months away from Election Day, he has filed for candidacy now so that he can start raising funds for his campaign, which has the potential of costing $1 billion, or even more.

It is expected by the White House that this election will be driven by the state of the nation’s economy. If voters feel like Obama has made good progress during his current term, then they might choose to re-elect him. On the other hand, if voters feel that Obama hasn’t delivered on his promises or made the right decisions for the nation, then they might choose another candidate that they think will do a better job.

Obama being the incumbent is going to be an advantage and a disadvantage in the upcoming election, depending on your perspective of how he is helping or not helping the nation recover from a recession. Although unemployment has dropped in the last 2 years, perceptions about the economy haven’t improved since Obama took office.

Has Obama delivered on the promises that he made when he was voted into office in 2008 and made the nation a better place, or has he failed to live up to what he promised us 3 years ago? The beauty of this nation is that you, the voter, get to decide what you think and make your voice heard by voting in 2012 for the candidate of your choosing.

State of the Union Preview

joshua — Tue, 25 Jan 2011 11:39:20 +0000

When President Obama addresses Congress and the nation later this evening, he will have two major, often contradictory, goals. Tonight’s speech, officially about governing, is unofficially political. The President must use this State of the Union to begin making the case for reelection while at the same time set up a framework for governance that acknowledges the reality of a divided government. Here’s a preview of what to expect.

Jobs, jobs, jobs

Ultimately, Obama’s fate hinges on voter’s perceptions of the economy. Although there has been a rebound and we’re starting to see growth in the job market, the public perception is still pessimistic. Recent polls indicate that although voters are increasingly optimistic about their own personal finances, they remain less confident about the state of the economy as a whole. Obama needs to convert the positive personal outlook into a broader economic confidence. To do that he will tout administration accomplishments and Department of Labor numbers that support a broader economic recovery. But he has a tough needle to thread, because the millions of Americans still out of work don’t want to hear about how things are getting better while they struggle to find a job. The President also needs to acknowledge the large amount of work that still needs to be done.

To move forward, President Obama must work with a Republican House of Representatives and a divided Senate, still under the narrow control of Democrats. He is helped in this by a Republican majority that has some deep divisions. After the President is done speaking tonight, the Republican response will be delivered by House Budget Chairman Paul Ryan. But there will be an additional, virtually unprecedented response, delivered by Rep. Michelle Bachman, representing the Tea Party caucus. This is emblematic of the difficult job that Speaker of the House Boehner will have over the next two years bringing together the various factions that make up today’s Republican party. Look for Obama to use tonight’s speech to paint himself as the reasonable moderate, willing to reach out to both sides of the aisle to find solutions. If he can set himself up as the sensible center, then it will be the Republicans, and particularly the Tea Party caucus, that feels the heat from the public to compromise.

Short term/long term

The president will emphasize a need to get America working again quickly, but he’s unlikely to stop there. Obama has dropped several hints that he plans to talk about long term job growth and economic infrastructure. Expect to hear lots of adjectives tonight like “creative”, “innovative” and “competitive”. He’ll say that rebuilding our economy for the long term will require additional investment in education so that we have a workforce able to compete in the high tech economy of the future. With new job listings rising faster than new hires and high tech companies commenting that they can’t find enough qualified candidates to fill the openings they have, Obama has ample reason to suggest that we need to refocus on American competitiveness. Bundled into this will be mention of high tech infrastructure projects like high speed rail and alternative energy sources.

Obama will also talk about the quality of the jobs of the future. It’s not enough to get everyone working again, we need to focus on jobs that will grow the economy, not just get people by. Expect to hear the President talk about jobs with good benefits, and use that as a segue way into defending the health care reform bill. Polls have shown that while individual components of the bill remain unpopular, a majority of voters oppose repeal, and the President can use this issue to paint the Republicans as obstructionists, out of touch with the will of the people.

Rally the base/recapture the center

As a political speech, the President needs to reinvigorate the people that put him in office. Support among the liberal base has eroded and the independents who overwhelmingly voted for him in 2008 have deserted him. He needs to bring both groups back into the flock. To rally the base, he’ll mention the repeal of “Don’t ask, don’t tell”. To recapture the center, he needs to return to what they liked about him as a candidate – a different kind of politics.

In the aftermath of the Tucson shooting which left one Congresswoman in the hospital and took the life of a federal judge along with several others including a 9 year old girl, Obama has made civility a major theme. Tonight will undoubtedly carry that forward. I expect an entire section of the speech to be devoted to reconciliation. The President will probably mention the large number of Senators and House members who have chosen to buck tradition and cross the aisle to sit together for the speech and remind us that even though our approaches to government may differ, our objectives are the same. In addition, he will probably pepper references to common ground and civility throughout the speech.

The Response

The Republican response will be delivered by Paul Ryan, Chairman of the House Budget committee. It is no accident that the Republicans are fielding an economic conservative to make their case. Ryan will not use the speech as an opportunity to attack the president directly, which would put Republicans on the wrong side of the civility issue. He will lay out the need for deep cuts in federal spending, which puts the Republicans in line with a majority of the country. But don’t expect to hear too many specifics – everyone wants less federal spending but nobody wants Congress to cut programs that benefit them.

Michelle Bachman, a darling of the Tea Party, will also deliver a response. She will be far less likely to moderate her tone or her criticisms of the current administration. Health care repeal, the debt ceiling, and deep cuts to taxes and spending will be her central themes. With recent indications from Tea Party organizers that everything is on the table, including defense spending, Bachman might be more willing to discuss specific cuts to the budget.

For Two Consecutive Months, Legal Jobs Decline

marvins — Mon, 06 Dec 2010 16:07:16 +0000

The Bureau of Labor and Statistics monthly report revealed that there was a significant decline in legal sector jobs in November despite the positive prediction of many economic analysts early this week. The report cited that the November job growth in the private sector showed a slower uptick than expected. The report also said that around 1,100 jobs in November have been lost in the legal services sector, after a previous industry decline in October. The last gain in the legal sector was recorded in September. The BLS reported that 1,400 new jobs were created in September, but the industry has still failed to produce any significant recovery on job creation from 2009.

The BLS report also mentioned that overall only 39,000 positions were added to the country’s economy in November, a big shortage from the industry prediction of a 150,000 job increase. Meanwhile, other sectors posted notable developments in terms of job growth. For instance, the temporary help services sector added 40,000 positions, the most of any industry for the time period. The private sector registered an increase of 50,000 jobs and health care jobs also expanded by 19,000. The US unemployment rate is currently at 9.8%, down from 10% in 2009.

Morning Roundup

joshua — Tue, 10 Aug 2010 12:28:51 +0000

Good morning everyone! Today is Tuesday, August 10th. Here’s a quick look back at yesterday’s stories.

Mia Farrow testified in the ‘Blood Diamond’ Trial and contradicted supermodel Naomi Campbell’s testimony…

AmLaw Daily reported 800 legal jobs were cut in July…

Butler Rubin Saltarelli & Boyd LLP hired a new COO…

800 Legal Jobs Go Bye-Bye In July … But Still Reflect An Improvement

eric — Mon, 09 Aug 2010 16:38:52 +0000

While reading through the tea leaves of the latest U.S. Labor Statistics Bureau report, which showed an overall loss of 130,000+ jobs for the month of July, AmLaw Daily reported today that at least 800 of the jobs that went poof were in the legal field. Hold your horses, though. This is, as the piece states, actually an improvement from June, which saw some 3,000 jobs go the way of the dodo.

With the national unemployment average holding steady (not, necessarily, a good thing) what does this mean for the legal industry’s job market? At best, job cuts there seem to be slowing. At worst, the current numbers could reflect an ongoing lack of stability. Let’s wait and see what next month brings.

Survey Confirms Summer Hiring Cool If Not Frozen

eric — Wed, 21 Jul 2010 15:26:58 +0000

AmLaw Daily reported today that firms have cooled their 2010 summer associate hiring down by an average of 44 percent. That equates to roughly an average of 31 fewer summer associates per firm for each of the 114 firms that took the publication’s survey.

Am Law is also reporting that some of the biggest dips in hiring came from those firms found on its “A” List. This includes Skadden, Arps, Slate, Meagher & Flom, which went from 223 summer associates last year to a meager 79 this year, and Cravath, Swaine & Moore, which saw an 81 percent cut in summer jobs. Ballard Spahr eliminated its summer camp entirely.

Finally, both Gibson, Dunn & Crutcher and Latham & Watkins had the largest summer school classes, although both saw a shrinking, about 40 associates less, of those classes.

Despite Firm Cuts, Law School Apps Up

eric — Mon, 12 Jul 2010 18:24:13 +0000

The ABA Journal: Despite a dramatic cut nationwide of four percent in firm staffing of attorneys last year, law school applications increased by three percent. The piece, which cites a National Law Journal report, says that the increase is partially due to applicants covering their bases with more instances of multiple applications.

An industry expert, James Liepold, said that the increase in applications is typical in a recession environment. With economic uncertainty, more people are looking to graduate level programs rather than taking their chances with the job market.

Since they are less expensive, public law schools saw a larger increase over their private counterparts. There was also a significant increase in male applicants over female ones.

D.C. Bar Reports That, Despite Economy, Good Being Done

eric — Fri, 25 Jun 2010 18:46:09 +0000

The Washington Business Journal: Major DC firms are still doing work pro bono despite downsizing and the current economic lag. The report was just released by the District of Columbia Bar Association.

Good for them. In fact, according to the report, pro bono work increased by 2.5 percent in 2009 among the 29 firms that responded to the bar association’s questionnaire. Those firms provided a total of 707,653 hours of time to those less fortunate. Those hours rose significantly from 2008.

Equally admirable, among the 29 firms who responded to the survey, there was a total of 345 lawyers dropped in the last year. Traditionally, many younger associates handle the laboring oar when it comes to pro bono work. With the recent round of layoffs, deferment and plain old down sizing, there are less lawyers to handle more service-oriented work in the community. A positive trend that points to more senior level attorneys getting back in the trenches of work for the common good.

Thorp Reed Says Goodbye To Seven Attorneys

eric — Thu, 24 Jun 2010 13:55:27 +0000

The Pittsburgh Business Times is reporting that Thorp Reed & Armstronghas “parted ways” with seven of its attorneys as well as two administrative assistants. Thorp, which employs some 125 attorneys, is Pittsburgh’s seventh largest firm.

The firm’s managing partner, Jeffrey Conn, did not disclose the names of those leaving or their practice groups, but commented that the firm had “made a strategic decision, along with many that we make from time to time, and acted accordingly.”

Established in 1895, Thorp Reed & Armstrong has offices located in Pittsburgh and Philadelphia, Pennsylvania; Princeton, New Jersey; and Wheeling, West Virginia. Its lawyers support a wide variety of clients’ needs within the practice areas of business law, litigation, labor and commercial and public finance.

Clients Could Refuse To Pay For Summer Associate Hours

eric — Mon, 07 Jun 2010 23:11:58 +0000

The New York Law Journal: A major bank has announced it will not pay for summer associate time. Is this an omen of things to come and the end of a law firm institution? Will unbarred pre-graduates across the country find themselves cocktail, tee time and ridiculously, unimportant-assignment free this summer?

The malaised economy has pierced, once again, the veil that has been cast on the attorney-client fee structure in the last several decades and the results are guaranteed to not be pretty for potential law school students looking for that cushy summer job. In fact, according to the piece, summer associates should expect an increase in more substantive, time consuming assignments. Better for your golf handicap? Nah. But it will sure get you prepared for the real world of big firms in the 21st century.

LeClair Ryan Attorneys Leave To Tackle Financial Industry Litigation And Regulation

eric — Wed, 02 Jun 2010 23:47:00 +0000

According to PR Newswire, fifteen attorneys have spun off from LeClair Ryan to open the new specialized practice of Murphy & McGonigle. The new firm will exclusively represent a number of public companies involved in the finance sector as well as their directors. Suits and government investigations against companies that were allegedly involved in the financial industry collapse are multiplying and Murphy is ready to capitalize on it with its crack team of former SEC attorneys who understand the ins and outs of the industry and the law. The firm also boasts a cutting edge litigation support department dedicated to such litigation facets as e-discovery.

Murphy represents a trend in recent legal practice start ups, in which firms are tailored to serve specific current economic and regulatory issues.

Morris Manning & Martin Announces Summer Associate Program

eric — Mon, 24 May 2010 16:36:30 +0000

Morris Manning & Martin announced today that it is reinstating it summer associate program. The firm will be hosting nine associates during the summer months.

According to the firm’s human resource partner, Vanessa Goggans, the firm opted out of the ten week program in 2009 due to economic reasons, a trend among many law firms. However, this year the firm has seen significant economic growth, Goggan reports and the firm is excited to reinstate the program.

Morris, Manning & Martin is a full-service commercial law firm representing domestic and international clients throughout the United States. MMM’s goal is to deliver industry-focused, diverse legal solutions by, involved lawyers who are dedicated to clients’ success, whether in a transaction, in court or in the everyday course of business. MMM specializes in green industry, healthcare, intellectual property, capital markets, environmental, insurance, mergers & acquisitions, technology, timberland and forest products, real estate, and litigation practices. MMM has offices in Atlanta, Raleigh-Durham, Savannah, Taipei, Beijing and Washington, D.C. and now an alliance with FGCN in São Paulo, Brazil.

ALM Study Finds Firms Take On Variety Of Measures To Counter Economy

eric — Mon, 17 May 2010 17:25:49 +0000

Earthtimes.org has reported that ALM Legal Intelligence has released a new study entitled “Changes In Staffing Structure of Law Firms”. The study is based on interviews with senior management at the nations top 100 law firms.

According to the study, firms have taken on a number measures to counter the ailing economy including cutbacks in travel and marketing, offering deep client discounts to maintain market presence, creating more flexible hiring and promotion policies and the continuation and broadening of ongoing partner de-equitization trends.

Focused on top U.S. and international law firms ALM Legal Intelligence offers detailed business information for and about the legal industry.

Morning Roundup

joshua — Thu, 13 May 2010 13:08:50 +0000

Good morning everyone! Today is Thursday, May 13th, 2010. Here’s a quick look back at yesterday’s stories:

Virtual Law?…

Managing Intellectual Property magazine Recognizes McKool Smith…

Virtual Law?

eric — Thu, 13 May 2010 00:11:11 +0000

In a recent pod cast sponsored by Catuongo Court Reporting, the LegalTalkNetwork interviewed attorney Stephanie Kimbro of Kimbro Legal Services. Ms. Kimbro is a legal practitioner licensed in North Carolina that operates a “virtual law firm.” The idea of virtual business is as commonplace as on-line shopping or smart phone technology these days. We’ve all shopped at Amazon.com and we’ve all conducted some part of our jobs via our phones – but the idea of providing a wide array of legal services without the comfort of an office in the right part of town, or a receptionist, or a legal assistant or an accounting staff? Barbarism!?

More and more, in the current economic climate, practitioners are looking for ways to cut down on overhead. Lower overhead means more profit. Lower overhead also allows one to pass some of the savings on to clients who, no doubt, feel the crunch of the recession as much as anyone.

The American Bar Association, no less, endorses such tech-forward practices and more and more attorneys are heeding its advice while trying to streamline their business models and practices.

There are many ways in which “virtual firms” can take advantage of the tech resources out in the market – bringing in clients, hiring contract employees who work from home via the internet, creating the infrastructure to support those employees (billing, e-mail, software applications, etc.) on a cloud server or Citrix, web-based telecommunications. All of these technologies, among others not mentioned, have the advantage of any time and any place access. There are also many on-line services available to legal professionals that specialize in e-filing and act as a liaison between local courts and law practices since most local courts have no standardized electronic filing rules and guidelines akin to the stringent Federal ones.

To make a potentially long story short, both solo lawyers and mid-to-small sized practices have a whole new world of tech resources at their fingertips waiting to be tapped that could help them reach out to more clients and boost profits. They need only reach out and grab them.

Morning Roundup

joshua — Wed, 12 May 2010 13:52:48 +0000

Good morning! Today is Wednesday, May 12th. Here’s a quick look back at yesterday’s stories.

Opportunity For Firms To Re-learn and Re-market Real-Estate Practice…

Legal Heavyweights Speak About Arizona Immigration Legislation…

Clifford Chance To Deepen Bankruptcy Practice Group…

Firms Hire MDs to Combat Government Suits Over Medicare Billing…

Lucado Law Firm Opposes BP’s Motion To Have All Lawsuits Involving Gulf Oil Spill to Houston…

Nevada School District Hires Littler Mendelson…

Nevada School District Hires Littler Mendelson

joshua — Tue, 11 May 2010 14:35:03 +0000

According to the Las Vegas Review-Journal, the San Francisco based firm Littler Mendelson has been hired by the Clark County, Nevada School District over a contract dispute with several of the School District’s executives. Littler Mendelson is the nation’s largest employment and labor law firm with extensive experience in the representation of management in labor disputes.

The dispute here arose when the Clark County Association of School Administrators and Professional-technical Employees filed a complaint against the District with Nevada’s Local Government Employee-Management Relations Board. The complaint alleges that contracts with several of the District’s executives contained benefits that were excessive in the current economic climate. Littler has been hired to defend those contracts and put into question the legitimacy of the Association’s claims.

Despite the District’s own economic woes due to state budget cuts, it retained Littler, who is charging the District $250 per hour, due to a conflict of interest. The District’s general counsel, who would generally handle such disputes, is one of the five employee’s whose contract is currently in dispute.

Morning Roundup

sara — Mon, 19 Apr 2010 13:14:39 +0000

Good morning everyone! Today is Monday, April 19th, and here’s a look back at Friday’s stories…

New law grads face a difficult economic climate…

Associates at DLA Piper receive a 10% pay raise…

Fitzpatrick, Cella, Harper & Scinto receive awards in two categories from Managing Intellectual Property Magazine…

An intellectual property lawyer from Haynes and Boone is nominated for the European Patent Office’s Inventor of the Year Award…

Recruitment levels are back to normal at Clifford Chance…

Dewey & Leboeuf has raised $125 million in a bond offering to refinance its existing bank debt…

The Oregon Supreme Court sides with the employer in a case involving medical marijuana…

Two partners leave Mayer Brown following layoffs…

Morning Roundup

sara — Thu, 25 Mar 2010 11:29:09 +0000

Good morning everyone! Today is Thursday, March 25, and here’s a look back at yesterday’s news…

Rosenfeld, Meyer & Susman LLP take on the band Green Day for copyright infringement…

Virginia Attorney General Ken Cuccinelli sues the federal government to stop the health care bill…

A new study details the “client revolution”…

UnitedHealth fraud is symptomatic of larger economic woes…

Seyfarth Shaw offers an overview of California employment law…

Former public relations specialist Susan Finkelstein is on trial after exchanging sex for World Series tickets…

Former FCC Commissioner Tyrone Brown leaves Wiley Rein…

Camille Cantrell has joined the Atlanta office of Hawkins, Parnell & Thackston…

Anna Nicole Smith’s estate loses a $300 million claim in court…

Intellectual Property Firm Darby & Darby Is Closing

sara — Fri, 12 Mar 2010 17:23:13 +0000

In a statement issued to The ABA Journal, Darby & Darby, an intellectual property boutique in operation for over a hundred years, stated it will close its doors.

“It is with a heavy heart that we announce that after more than 100 years in continuous operation, Darby & Darby will begin the process of winding down the firm in anticipation of an orderly dissolution…While we continue to have exceptional clients, from individual inventors to Fortune Global 500 Companies, and remain profitable, many of the factors frequently cited in other firms’ demise have similarly impacted us.”

Media and PR manager Mike Rick has also stated that reports of a merger with K&L Gates are not true nor was there any confirmation or indication that K&L Gates was planning to hire Darby lawyers.

Darby & Darby has approximately 200 attorneys and offices in New York, Seattle, Washington, D.C., Palm Beach Gardens and Frankfurt.

Morning Roundup

sara — Fri, 12 Mar 2010 13:41:19 +0000

Good morning everyone! Today is Friday, March 12, and here’s a quick look back at yesterday’s news…

The Asian Pacific American Legal Center files a lawsuit against Trinity Law Associates for allegedly defrauding 30 Korean immigrants…

King & Spaulding reveals a new pay scale and bonuses…

Former U.S. Senators Lott and Breaux are in talks with Patton Boggs…

Snell & Wilmer opens a sports agency…

The Obama administration nominates two federal judges…

The Zeughauser Group reports that BigLaw hasn’t fared as badly as predicted…

Quinn Emanuel changes their name…

Howrey is cutting partners after a tough 2009…

White & Case promotes five to partner…

Morning Roundup

sara — Mon, 08 Mar 2010 14:58:31 +0000

Good morning everyone! Today is Monday, March 8, and here’s a quick look back at Friday’s news…

The Rosen Law Firm files a class action suit against Electronic Game Card,Inc….

Rumors of Chief Justice John Robert’s retirement originates in a law school classroom…

Job losses in the legal sector continue to decline…

Industrial hog producers Premium Standard Farms are required to pay $11 million in damages by the Missouri State Court…

USC delays its Tax LLM program…

A group called “Keep America Safe” runs attack ads against Attorney General Eric Holder and the Justice Department…

The D.C. Appeals Court reverses a wrongful termination suit against Reed Smith…

More Chief Legal Officers Plan on Hiring in 2010

sara — Wed, 03 Mar 2010 16:45:47 +0000

The Association of Corporate Counsel’s 10th annual Chief Legal Officer Survey finds that more chief legal officers plan on hiring this year. Don’t take this to mean that economic pressures and budget issues have receded. The additional hiring indicates that the poor economy is forcing chief legal officers to bring more work in-house and spend less on outside counsel along with increasing spending on alternative fee arrangements.

970 chief legal officers participated in this year’s survey. 29% said they are planning to add to their departments, while last year only 23% planned to do the same. 34% have said they have reduced spending on outside counsel. When chief legal officers do hire outside counsel it is more common to negotiate alternative fee arrangements to reduce costs. 44% negotiated alternative fees in 2009 and 41% in 2008.

Over half of respondents said their work has increased because of increased regulation. 57% were concerned by increased scrutiny by regulators and law enforcement. Despite all these hardships over 90% of chief legal officers are satisfied with their careers, up from 88% last year.

Revenue Decreases at DLA Piper

sara — Fri, 26 Feb 2010 15:32:15 +0000

DLA Piper reports that gross revenue declined by almost 14% in 2009 to just over a billion dollars. Revenue per lawyer and profits per partner decreased only 5%, due to reductions in the firm’s head count. The headcount fell by 89 associates (11.6%), 24 equity partners (10.1%), and 16 non-equity partners (4.3%), for a total loss of 129 lawyers (9.3%). Firm chairman Frank Burch said that DLA “weathered the economic storm well…and our overall performance during this period was solid.” Burch said that the firm broadly cut expenses and improved its balance sheet by increasing its reliance on paid-in partner capital while attracting high profile laterals.

DLA Piper is one of the world’s largest international law firms. It has over 3,500 attorneys in 67 locations globally.

Recession Hits the Jury Pool

joshua — Tue, 16 Feb 2010 19:52:02 +0000

Readers of our page have seen numerous posts on the effect the recession has had on the court system around the country. Cutbacks, furlough days, layoffs, and other cost cutting mechanisms have hit courthouses, DA’s offices and public defenders, impacting both the speed and the quality of the justice being served. But an article in yesterday’s LA Times highlights another problem – juries.

Jurors in Los Angeles are paid a stipend of $15 per day and according the LAT, a much larger percentage of them are applying for hardship exemptions in the current economic climate. For a sole wage earner or someone who is self employed, the loss of a few days work can be frightening. Some judges are reporting hardship dismissal rates of 60%, and that’s counting only the diminishing percentage of jurors that respond to the summons at all. Jurors that are denied an exemption have become hostile, causing both sides in a recent case to waive jury trial after three days of jury selection produced a volatile and unpredictable panel.

1,100 Legal Jobs Lost in January

sara — Fri, 05 Feb 2010 21:12:20 +0000

This week the Bureau of Labor Statistics released the latest employment report. The legal sector lost 1,100 jobs in January, a slight decrease from previous months. 2,100 jobs were lost in December, 2,900 jobs were lost in November and 5,800 jobs were lost in October. Between January 2009 and January 2010 the legal services industry has cut 44,700 jobs.

Two big law firms announced more lay offs in January and February. Wilson Sonsini Goodrich & Rosati laid off 20 staffers and Howrey will cut 94 jobs, including 29 associate positions. Yet lay offs were 88% lower in January 2010 than they were a year ago.

One reason for the decline in lay offs could be that many deferred first year associates reported to work in January and this offset layoffs elsewhere.

The State of the Union: What to Watch for

joshua — Thu, 28 Jan 2010 00:39:26 +0000

Tonight may well be the most important speech of President Obama’s political life. His signature issue, health care reform, is on the ropes. His unfavorable ratings are rising and the Democrats have suffered some embarrassing losses in special elections, capped with the loss of the Senate seat held for a generation by Edward Kennedy. A year ago the democrats were riding high on a wave of popular support; today that wave has crashed to the ground and the party appears to be in disarray. What will the President do tonight to pick up the pieces?

- Health Care. This is Obama’s signature issue and aides have already said he’ll be talking about it tonight. In his last address to Congress he laid out a compelling case of the need to take action but was light on specifics, preferring to leave it up to Congress to shape the bill. The result is a mish mash of pork laden policy that adds 45 million people to a dysfunctional health care system and is viewed by the public as massive overspending at a time when we need fiscal discipline. The current bill is supported by only 30% of Americans but a majority still believe that health care reform is necessary. Look for Obama to return to specifics and call on Congress to pass a bill with genuine reform of the system that embraces some Republican cost cutting ideas.

- The economy. There is a perception that Obama has focused too much on wall street and not enough on restoring jobs for the middle class. The irony is that his policies have largely worked to reinvigorate the economy and get credit flowing again. The free flow of credit is critical to rebuilding the economy but it’s difficult to sell the notion that it’s working when the job market hasn’t rebounded yet. Look for Obama to propose some populist symbolic gestures tonight, like curtailing discretionary spending. Without tackling entitlements such as social security and medicaid, or cutting defense spending, the cuts will have only minimal impact but will have broad symbolic appeal.

- Jobs. A hefty section of the speech will have to be about jobs. The President will propose spending $8 billion on developing high speed rail networks and will tout it as a job creating measure. High speed rail is good for the country and will create some jobs, but because America has no experience with high speed rail much of the equipment will need to be purchased from European companies. In the end this may be a symbolic gesture as well. Look for him to mention specific locations for high speed rail such as Florida, where a tight senate race is developing.

- Appeal to the base. Liberal democrats are unhappy with the President after one year in office, believing that he’s abandoned them. Although much of that is based on projection – Obama ran as a moderate, not a radical – he will need to regain their support without alienating independents. Rumor has it he’s going to call on Congress to repeal Don’t Ask Don’t Tell tonight.

Bonus Season – DLA Piper Says Yes

joshua — Mon, 05 Oct 2009 16:57:18 +0000

We don’t know yet how much, but DLA Piper has informed its associates that there will be bonuses this year. The total bonus will be between 5 and 50 thousand, to be determined by DLA Piper in January. This, combined with a healthy 86% offer rate for this years summer associates, indicates some real optimism about the future at DLA Piper. We can only hope that it’s a harbinger of good things to come across the board.

DLA Piper is one of the largest law firms in the world. It is a legal services organization whose members and affiliates are separate and distinct legal entities. The organization boasts more than 3,500 lawyers in 29 countries and 65 offices.

2,000 Jobs Lost in September for the Legal Sector

joshua — Mon, 05 Oct 2009 16:24:44 +0000

Unless you live in a cave, by now you’ve probably heard that the latest numbers from the US Bureau of Labor Statistics show that we lost another 263,000 jobs in September, nationwide. 2,000 of those jobs came from the legal sector, when the numbers are seasonally adjusted. Without seasonal adjustments the legal sector lost 13,600 jobs, but that’s most likely caused by large numbers of summer associates returning back to school.

We report here on layoffs from big law firms, and for the past two weeks no big law firms have laid off attorneys although Cooley Godward did let go of some staffat the end of last week. These numbers are a sobering reminder that there are plenty of lawyers and legal staff outside the biglaw world that are struggling as well.

Law Firm Mergers are up in Third Quarter

joshua — Fri, 02 Oct 2009 21:14:14 +0000

According to a new report from Altman Weil 13 US law firms announced mergers in the third quarter. Although still sluggish compared to the 25 announced mergers in the first quarter, it’s a nice bump from the second quarter when only seven merger announcements were made.

Altman Weil is a legal management consultation company with over thirty years in business. It offers a broad range of services to law firms, corporate legal departments, governmental agencies and other legal service providers.

Bryan Cave Pays Associates to Not Come to Work

joshua — Thu, 03 Sep 2009 22:10:14 +0000

In 1933 the Federal Government began paying farmers to not grow crops, in the hopes that reducing the supply would stabilize prices and help spur recovery from the Great Depression. Today, Bryan Cave becomes the third law firm to pay lawyers not to work. Certainly the goals of the Federal Government differ from that of a big law firm, and just as certainly the effectiveness of the Agricultural Adjustment Act of 1933 can be debated, but one comparison that seems firm is that the current market can’t bear the supply. There are simply too many lawyers for too few jobs. Paying new associates to not come to work, in effect subsidizing the legal industry, is one of many ways the market is handling the situation.

In the case of Bryan Cave, new associates are being offered $70k to not work. In some cases, these lawyers are being asked to, in effect, “go away”, while others are being paid to take a deferral. It’s unclear how many of each there are at this time.

Stroock and Pillsbury have already offered first year associates money to walk away in one form or another. If more firms continue to do this, will it have a net impact on the legal economy? How many new associates would need to be subsidized in order to “correct” the market? If this becomes an industry trend, we may find out.

Survey: Legal Industry May Be ‘Stabilizing’

Erik Even — Thu, 20 Aug 2009 16:14:05 +0000

According to the Hildebrandt International Peer Monitor Economic Index, the economic health of the legal industry has stopped declining for the first time since Q2 2008.

The survey follows demand for legal services, attorney productivity, billing rates and expenses at Biglaw and midsize firms.

Hildebrandt says the legal industry may be “stabilizing,” as the result of cost-cutting changes made by law firm management.

Hildebrandt, part of Thomson Reuters, does merger consulting, with more than 50 consultants located in the United States and in London.

Dundas and Wilson To Cut 50 Jobs

Erik Even — Sat, 28 Feb 2009 01:06:34 +0000

Dundas and Wilson, Scotland’s biggest law firm, plans to cut 50 jobs from all three of its offices, citing a lack of work as the economy has worsened. 35 Graduate trainees who were due to start this year have been asked to defer their positions until 2010.
Edinburgh, where 308 of the D&W staff are based, is likely to see around 23 job losses, while Glasgow and London, which employ 168 and 193 workers respectively, will lose around 14 staff each.

The firms managing partner, Donald Shaw, said: “We have not taken this decision lightly but unfortunately we must act to rebalance our capacity with our predicted levels of future business. This is a reflection of market conditions. The economy is not looking like it is improving and we need to accept that.

“There are a small number of partners affected; these cuts are coming across the whole business.”

He added: “Almost every area (of the business] has been hit, except restructuring services and litigation.”

Legal Industry Lost 1,300 Jobs in January

Erik Even — Fri, 06 Feb 2009 21:32:24 +0000

The legal services industry continued to slash payrolls in January with a loss of 1,300 jobs, according to the US Department of Labor.

The job losses in the legal sector were .003% of the 598,000 jobs shed throughout the US last month, as the national unemployment rate rose to 7.6%.

Since the current recession began in December 2007, the economy has lost 3.6 million jobs, about half of them in the last three months. The legal sector shed 14,500 during that period.

Recruiters on both the East and West coasts report that associate hiring at law firms has largely stopped, and firms are now mostly targeting partners with portable books of business.

The last time so few people were employed in legal services was in 2004.