JD Journal » struggling economy

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.

Layoffs at Seyfarth Shaw

joshua — Fri, 15 Jan 2010 18:20:19 +0000

Seyfarth Shaw is letting go of approximately 40 people, 20 lawyers and 20 staff. It’s been rough over at Seyfarth over the past year and they’ve taken several steps to keep costs down. In December, the firm cut salaries as part of a move toward merit based compensation. In November, it re-deferred half of its already deferred first years for an entire additional year, while cutting the salaries of the first years lucky enough to actually start working. In August, the firm announced that it would not have a summer program in 2010 and in May, Seyfarth laid off 50 people and cut some salaries.

Chicago’s Seyfarth Shaw LLP is a full-service law firm founded in 1945. It has ten offices, nine of which are in the United States. The firm is well known for its labor and employment, employee benefits, litigation and business services.

Last Minute Deferrals at Nixon Peabody

joshua — Tue, 15 Dec 2009 20:04:45 +0000

Forget for a moment that Christmas is right around the corner, and that Hanukkah has already begun. Nixon Peabody’s associates were supposed to start on January 4th, three weeks from now. Yesterday, 2/3rds of them found out that they have been re-deferred, indefinitely.

Yes, the economy is struggling and it’s rough all over. But any half way decent lawyer would have done their due dilligence and been prepared to start work in three weeks. They would have signed a lease, bought plane tickets, hired movers – in short, they would have committed time, effort and money into being prepared.

Memo to Biglaw: It’s too late. If you have associates scheduled to start work in January, you’re stuck with them now.

2010 Steel Cage Match: Corporate Clients vs BigLaw

joshua — Thu, 03 Dec 2009 23:22:34 +0000

I have a mental image of two giants staring each other down inside a locked steel cage before charging at one another, swinging leather briefcases and throwing blackberrys. In this corner, wearing a charcoal suit and a red power tie we have BigLaw, who wants to raise billing rates by 5%, and in this corner wearing a black pinstripe suit with a pastel blue tie we have Corporate Clients, who want to pay 2008 rates or less. The cage is sealed, and only one will emerge victorious.

In a year in which both law firms and their corporate clients have had to make deep cuts and face economic uncertainty, neither side seems ready to blink. Several law firms have enacted salary cuts for first year associates along with lowering the billing rate for their time, and alternative fee structures are on the rise. But profits are down and the easy cost cutting measures have already been enacted, which means law firms want to raise rates to compensate. Corporations are turning to their own legal department for more of their work and are also suffering from lowered profits and greater public scrutiny. In a grudge match with enormous stakes, who will back down first?

Scary Days at Drinker Biddle

joshua — Fri, 30 Oct 2009 16:23:31 +0000

Drinker Biddle managed to avoid deferring its incoming associates this year by cutting salaries, as we reported back in May. Apparently that wasn’t enough, as sources are reporting more than twenty associates were laid off yesterday. So far, it appears litigators are safe, with most cuts coming from tax and corporate practice groups. As we get more detailed information, we’ll keep you posted. If you have information for us, remember that tips are always anonymous and can be submitted here.

Drinker Biddle & Reath LLP was founded in Philadelphia in 1849. The firm has more than 650 attorneys in 12 offices in the US. Its largest offices are in Philadelphia, Chicago, Florham Park, New Jersey, and Washington, DC.

Squire Sanders Moving from Lockstep

joshua — Wed, 21 Oct 2009 00:32:18 +0000

Squire Sanders has joined the march away from lockstep compensation, and will implement a merit based pay system starting next year. Details are still being worked out. The firm says the move away from lockstep is due to the changing economy and the expectations of clients.

Squire Sanders has had a rough year. As we’ve reported previously, they’ve made several cost cutting decisions, including lowering base salaries, layoffs, and cuts to their summer program.

Squire Sanders was founded in 1890 in Cleveland, Ohio, and has 32 offices today in 15 countries.

Nixon Peabody Lay Offs – Shhhh

joshua — Fri, 09 Oct 2009 19:36:45 +0000

In February we told you about staff layoffs at Nixon Peabody, and in April we reported on salary cuts. Those salary cuts were billed as a way to save associate jobs in a struggling economy. Now it appears that those cuts were not enough and that Nixon Peabody has been quietly laying off 2nd and 3rd year associates. The affected attorneys are being let go based on performance, but performance in this case may mean there’s not enough business for you to keep up with your billable hours. Unlike earlier cuts, the firm has remained tight lipped about these layoffs, so exact numbers are hard to come by. If you have more information or want to share your own layoff story anonymously, send us a tip here.

Fenwick & West the Latest Firm to Buy Off Incoming Associates

joshua — Wed, 07 Oct 2009 18:51:16 +0000

We’ve reported on a few firms that have paid incoming associates a stipend to, essentially, go away. In each of the previous cases, the offer has been to the entire incoming class. Fenwick & West was slated to have 24 new associates start, once their deferrals expired, and has offered some of them $60k to go away. No hard numbers yet on how many were given the offer or how many accepted. As always tipsters, if you have information for us, send it anonymously here.

Founded in 1972, Fenwick & West LLP is a full service law firm focusing on technology and life sciences clients. The corporate, intellectual property, litigation and tax groups service clients from a wide range of additional industries. Approximately 300 attorneys work from offices in Silicon Valley and San Francisco, California; Boise, Idaho; and Seattle, Washington. The firm is headquartered in Mountain View, California.