The Week: FBD Overtakes CC but Both Outdone by Linklaters. For Frauds Sake. Darling Day in Delhi. Seduced by the Sea. Oh and Tea

Freshfields Bruckhaus Deringer and Linklaters have followed swift on the heels of Clifford Chance in releasing their 2008-09 financial results. Revenue at Freshfields was £1.29bn for the year and profit per equity partner came in at a solid £1.44m. It is understood that turnover was significantly enhanced by exchange rates with nearly 60 per cent of the firm’s revenue in euros or dollars. Handy. Linklaters just pipped Freshfields’ revenue though at £1.3bn but slipped behind on PEP with a 9.6 per cent drop over last year to £1.3m.

So partners still doing pretty well despite the economic conditions. Not in the next case though. A former partner at Latham & Watkins has been sentenced to 15 months in prison and ordered to pay a $10,000 (£6,000) fine and $350,000 (£210,000) in restitution to Latham for defrauding both clients and his own firm. Samuel Fishman, an M&A specialist in the US firm’s New York office from 1993 to 2005, pleaded guilty to a single count of mail fraud in March 2008. He faced a maximum sentence of 20 years in prison. One major question hangs unanswered over the story. Why, given the annual take-home of a Latham partner (Latham’s 2007 profits-per-partner was $2.27 million) and the long period of time over which Fishman’s fraud played out, would he risk so much for so little?

No such conundrum over Bernie Madoff’s fraud in which everything was served up in a giant helping of big. Bloomberg notes that he has been sentenced to a prison term six times longer than those given the chief executives of WorldCom Inc. and Enron Corp. and will likely serve his time in a harsher prison than them. Sentenced to 150 years, Madoff will probably be sent to a medium or high-security prison. Even worse for the old swindler, fellow inmates serving life sentences may want “to make a name for themselves” by harming him, a former inmate said.

Further afield Legally India reports that The Lawyers Collective has emerged victorious in its bid to decriminalise homosexuality in the Delhi High Court prompting various observers to suggest amendments to the Kama Sutra. Hoho.

And in Australia surfer, Shane Bevan, who took part in a competition when he was on sick leave from work has had an appeal against his sacking upheld. The Telegraph reports that he took part in Queensland’s Coolum Classic surf competition while he was off work with a bad back in 2007. Not altogether surprisingly, the baggage handling company he worked for found out and promptly fired him. The Industrial Relations Commission initially upheld his sacking, but on appeal ruled that terminating his employment was too harsh and ordered the company to pay compensation. For those lawyers who fancy themselves as the surfing type we wouldn’t recommend bunking off work to do it but we would recommend checking out "Scribblings from the Surf " by celebrated blogger Baby Barista, aka Tim Kevan, who ’swapped life at the bar in London for living by the ebb and flow of the tide in North Devon’.

And after our story this week about pensioners having their coffee morning banned on grounds of health and safety can we just take this opportunity to recommend tea instead; apparently it’s healthier than water .

Jacko’s Lyrical Tips for Lawyers

This will either make you cringe or laugh or maybe a bit of both. In the week following the King of Pop’s death we have see much media coverage and hysteria. Never far from a lawyer’s reach in life, the superstar singer looks set to have an ongoing relationship with many more in death with the wrangles over his estate. Despite his regular proximity to the legally versed we don’t imagine it was the inspiration for his music but one legal blogger from the Young Lawyers Blog has found inner meaning in some of his lyrics…

Sound Legal Advice:

"People always told me, be careful of what you do and don’t go around breaking [the Law]."

Zealous Advocacy Despite Obstacles:

"Just beat it, beat it, beat it, beat it. No one wants to be defeated, showin’ how funky strong is your fight it doesn’t matter who’s wrong or right."

Telling a Partner You’re Overwhelmed:

"You got me workin’ workin’ day and night
(hold on)
You got me workin’ workin’ day and night
(I’m so tired tired now)
You got me workin’ workin’ day and night
(hold on)
You got me workin’ workin’ day and night
(hoo, hoo, hoo)"

And there’s more ; clench those mental buttocks…

Law Firm Layoffs “the best thing to happen to the legal industry in years”

You might not feel that way if you have just been laid off from your firm but when a publication with the credentials of the Wall Street Journal makes the point, it’s worth at least having a look. The issues facing law firms and their response to them in this economic crisis have been similar in the US and the UK, and the junior end of the profession has taken the brunt of the beating in both jurisdictions. In an article entitled "Another View: In Praise of Law Firm Layoffs " Dan Slater, a former litigator, argues that this might not be such a bad thing…

As of June 14, nearly 5,000 lawyers had been cut by major law firms since January 2008, or about 300 a month, ­ the approximate size of many law school graduating classes. The legal media, in its rush to side with the fallen, has often cast the layoff wave as the result of endemic firm mismanagement finally coming home to roost. Perhaps. But make no mistake: These layoffs, ­ which in many cases have been paired with salary freezes or cuts and significant reductions in law school recruiting, ­ are the best thing to happen to the legal industry in years. Call it a blessing amid recession.

A strange blessing for those who have dreamt of a legal career since seeing Tom Cruise in the Firm and have racked up large debts in the process. So what’s his justification for this seemingly rather callous claim? Well there’s a fleeting criticism of the billable hour but here’e the crux:

And what about all those 20- and 30-something associates who can no longer formulate excuses — ­ But I’m paying off my law school debt while I figure out what I want to do! — ­ to remain in the kinds of jobs that so many of my law firm friends describe as “soul-crushing”? For many lawyers at law firms, particularly those who spent the early part of their careers toiling in structured finance departments and contributing, in the end, nothing to nothing, this recession may be the thing that delivers them from more 3,000-hour years of such drudgery as changing the dates on securitization documents and shuffling them from one side of the desk to the other.

Like a relationship gone bad, clearly hopeless to everyone but the imprisoned, it often takes a forced exit to break the leash of inertia that collars so many smart law graduates to mind-numbing work. So don’t pity these people. What they needed all along was liberation. Now they have it.

I think it was Soren Kierkegaard that suggested freedom causes anxiety; being liberated into a rapidly contracting job market whilst saddled with debt might cause more than anxiety right now. So is it what they really needed?

Clifford Chance Crunched

A tough week for the world’s largest law firm…

Clifford Chance shut up shop in Budapest earlier in the week - the firm’s Hungarian partners are set to spin off into Lakatos Koves & Partners.

And now the firm has announed its financial results ahead of its Magic Circle rivals. Revenues for 2008-09 have come down 5% from a high last year of  £1.329m to £1.262m. Meanwhile profits per equity partner have dropped significantly from £1.156m last year to £733,000 this year, a fall of 37%.

The fall in profitability was blamed largely on the reduction in headcount that the firm has made over the last few months.

More on Clifford Chance

Solicitor Advocates - Prejudice from the Bar is “Fact of Life”

A bit of intra-profession sniping…

June Venters, who in 2007 became the first female to be made a solicitor QC has told the Gazette that as a solicitor HCA she has experienced hostility and rudeness from barristers and judges before and since becoming a silk. ‘I’ve come across some charming judges and barristers, but there are others who are clearly prejudiced and have made that known to me – it’s just a fact of life.’

It seems that barristers are becoming more and more concerned about the threat posed to their prong of the profession by the increasing numbers of higher court advocates. Criticism has been openly levelled at the advocates by members of the Bar and recently by Judge Gledhill, which in turn sparked a response from the chairman of the SAHCA (solicitors association of higher court advocates):

"In recent weeks the standard of solicitor advocacy has been the subject of self-doubt by the profession and high-profile criticism by a circuit judge, HHJ Gledhill. The judicial criticism will undoubtedly be the subject of much discussion and debate. I cannot comment on the substance of the Judge’s complaint. However, I quarrel with the way he did it."

Pistols at dawn?

Law v Justice

Every now and again you come across an interesting take on lawyers. Here’s a commenter’s take on criminal defence lawyering, and it’s not even that abusive, from Defending People - "Law and Justice Explained "…

"One of the most annoying things about lawyers is the way they casually conflate “law” with “justice.” To clarify: justice is a concept in philosophy; also to some extent in psychology, sociology, economics, etc. Law is what a bunch of mostly long-dead politicians thought would get them reelected. There’s no connection between the two. None. The relation between law and those other fields is much like the relation between astrology and astronomy…except that astrologers don’t have guns."

A bit of legal philosophy for you, how about that?

The Cool Partner

Oxymoron? You have to judge that for yourself. If this tale from the Legal Tease at Sweet Hot Justice is anything to go by, "The Myth of the Cool Partner " may just turn out to be like the tale of the Trojan Horse…

It’s happened—after a few years and a few thousand billable hours, I’ve finally found him.  Sure, there have been loads of false starts along the way, but I think this time it’s for real: I’ve finally met the worst partner in the entire firm.  At first, I thought the winner might be Russ, the firm’s resident stone-faced robot and reigning Big Firm Savant .  But no.  Then, for obvious reasons involving hidden harnesses and coconut-flavored lube , I thought it could possibly be Ian, our favorite slave-driving Pervert, Esq.  Wrong again.  No, in the past few weeks, the true winner has revealed himself to be a creature far more insidious, more vile: the Cool Partner.  And I’m here to warn you—he’s a type more dangerous than you’ve ever imagined.

As any Big Law victim can tell you, the Cool Partner, like any true predator, takes time to attract and distract his prey before he bares his polished little fangs and goes in for the kill.  He may seduce you at first with hints of an actual personality, an apparent respect for your time, and possibly even a sense of humor.  You’ll marvel at how comfortable you are around him, how energized you feel.  You’ll smile and shake your head in disbelief as you sing his praises to fellow associates who ask why you look sunnier than usual.  You might even find yourself—even just for one brief, indulgent little moment—wondering if you might’ve been wrong all those times you thought this job was nothing but a festering sewer of misery where dreams go to die at the hands of lunatic, unit-holding nerd sadists.  Hell, you might even start waking up happy.

And then reality comes crashing back down…

Click here to continue. Had a similar experience or know anyone that fits the bill, send us your story?

More from the Legal Tease:

Respect the Ring

Bring on that Client Contact

Addleshaws’ Falling Financials

Judge Suspended Over NOTW Rent Boy Claims

The clue should be in the title, Judge Gerald Price QC, a senior circuit judge no less. One assumes the judiciary are chosen partly (a fairly significant part you’d hope) on their ability to reason the facts, consider the legal implications and make a sound judge ment.

A  recent News of the World article "Court in the Act ", would beg to differ in the case of Judge Price however. The paper claimed that the 60 year old judge, who is married, had a secret nine-month fling with a £250 a night rent boy, Christopher Williams. Not only that, it also claimed that the Judge set up Mr Williams with a flat, paid him a monthly allowance and let him sit on the bench in court as he presided over trials!

Given the nature of the allegations, the judge has now been suspended pending an investigation by the Office for Judicial Complaints into his conduct.

IT Problems?

From Courtoons

Revenue Revelations: Ince, Clyde & Co and Edwin Coe Up Ward Hadaway and Clifford Chance Down

A mixed picture continues to be painted as more firms release their financial results; it’s not as bleak as you’d expect…

Ince & Co saw turnover for 2008-09 grow by 23.5% to hit £79.4m, up from £64.3m last year. The firm’s London office brought in the bulk of the fee income, breaking through the £50m barrier. Asia and Europe brought in £14.9m and £11.7m respectively. The firm attributed the increase in revenues to its ligitation-focused practice. Profits per equity partner which stood at £427,700 last year is yet to be confirmed for this year. Source

Clyde & Co has also posted a double-digit rise in revenue, with turnover for 2008-09 breaking through the £180m mark. Revenues were up by nearly 18% to at £185m from £157m the previous year. PEP was similar to last year at around £550,000. Source

Edwin Coe , another litigation specialist increased its turnover by six per cent, with revenues rising from £13m to £13.8m in the 2008/09 financial year although PEP has suffered falling from £456,000 to £368,000. The 19% drop in PEP was put down to the expansion of the firm over the last year. Source

Meanwhile, Ward Hadaway has seen ­revenue decrease slightly from £28.4m down to £26.56m, a 6% drop, along with PEP which has fallen from £408,000 during the 2007-08 financial year to £190,000 last year, representing a substantial 53% change. Source

Finally Clifford Chance has attracted speculation that it is about to lose its status as the world’s biggest law firm to an American rivals, Skadden and Baker & McKenzie. A fall in revenues and profit is expected (they reached £1.33 bn and over £1m respectively last year) which would see Clifford Chance slip back into 3rd place. Various factors are in play such as the change in exchange rates, the focus of their practices (Lehman Brothers was a client of CC) and the expensive restructuring processes that have taken place. Source

Dangerous Pensioners Coffee Morning Banned by Conscientious Health and Safety Officials

We like to keep an eye out for laws of the land being put to good use…

A seven strong coffee morning for over 50s which has met at Eye Library in Eye, near Peterborough, Cambridgeshire, every Tuesday for the last four years without incident have had their meetings axed by concerned council officials reports the Telegraph .

The conscientious health and safety officers banned the outrageous meetings claiming that toddlers from a nearby nursery who use the library at the same time could be injured if hot coffee spilt on them.

Now members, who used to pay 20p each to the library to cover costs, have arranged to meet at each other’s homes instead.

Derek Taylor, one member of the coffee club, condemned the "laughable" move and claimed they had usually finished their drinks by the time the toddlers arrived for their half hour visit.

Good to see people busy despite the downturn.

Bernie Madoff Gets 150 Years, Prison Currency Spirals

Bernie Madoff received the maximum sentence of 150 years for his $65bn (£40bn) fraud. Madoff’s lawyer had sought a more lenient sentence of 12 years. Nice try.

The sentence was greeted with cheers and applause in the packed courtroom and US District Judge Denny Chin said he wanted to send a message that Madoff’s crimes were "extraordinarily evil". He added "the breach of trust was massive" and pointed out that no friends, family or other supporters had submitted any letters on Mr Madoff’s behalf.

Although Madoff has 10 days to appeal, the sentence is already having some latent effects according to the Onion which reports "Prison Economy Spirals as the price of cigarettes exceeds two…" click for full details (video)

Trainee Retention Down at Dentons and Taylor Wessing as Graduate Outlook Gets Grimmer

Denton Wilde Sapte will only be offering 17 out of 31trainees places when they qualify in September 2009 and Taylor Wessing is set to retain 13 of 24 trainees due to qualify in September. For both firms that represents only a little over half of their trainees at 54%.

Other firms in the City have seen retention rates falling including magic circle firms Allen & Overy, Clifford Chance and Freshfields Bruckhaus Deringer although retention is still fairly strong at around 70% . Source

But if qualifiers are feeling hard done by, they might take some consolation from the latest survey (not cheerful reading) by market research company High Fliers Research which has shown that tens of thousands of students graduating this year may well have to join the dole queue. This is the first year students have had to pay full tuition fees and the survey notes that graduate debt has almost reached £26 billion, compared with £18 billion in 2007. So a double whammy of pain.

Martin Birchall, the managing director of High Fliers, said that there was a shortfall of 80,000 vacancies for graduates this year. “There is a massive over-supply of students for the job market and as the Government moves closer and closer to its target of 50 per cent going to university, that is only going to be exacerbated.”

Soliciting for Business

There may be good reasons that lawyers in the UK tend to be rather conservative when it comes to advertising.

Maybe cowboy solicitors just don’t want to advertise the fact.

Whatever; you gotta love that can-do attitude!

Source: ATL