At the Tipping Point
November 29, 2006
In Part One, last month, the authors examined the <i>EEOC v. Sidley Austin</i> case and the issues raised therein. Part Two continues the discussion with the implications of being designated a 'bona fide' partner.
Severance Waivers Become Endangered Species
November 29, 2006
When involuntary employment terminations become necessary, employers often seek protection from possible post-employment claims by conditioning severance pay on the signing of a general release and agreement not to sue. As a general rule, such waivers are enforceable if they are 'knowing and voluntary.' Less clear, however, is under what circumstances an employer may condition severance payments on a promise by the departing employee that he or she will not pursue a charge with the Equal Employment Opportunity Commission (EEOC) in connection with an allegation of discrimination, harassment, or retaliation. <br>Recently, increased litigation activity by the EEOC signals renewed agency focus on severance arrangements that seek to limit a former employee's ability to participate in any manner in EEOC administrative proceedings.
Are We Approaching a Profitability Plateau?
November 29, 2006
As we turn the calendar to 2007, law firm leaders will once again be able to tell their partners that their firm hit ' or exceeded ' budget and that their income will increase. That's the good news. <br>The bad news is that, as firms have grown more profitable and pushed harder on the drivers of their firms' economics, it is becoming difficult to identify ways to ensure that the double-digit increases in profitability will continue. After all, the economic model of law firms has only a handful of levers (rates, realization, leverage, utilization, expenses). Once firms pull as hard as possible on each lever, there is not much more they can do. For law firm leaders, managing the expectations of their partners will become a more difficult challenge, particularly since a good portion of those partners have come to expect double-digit increases in profitability each year.
To Trust or Not to Trust?
November 29, 2006
Trust is a cornerstone of every successful marriage. Thus, it is ironic that the term that we lawyers use to describe the vehicle by which many of our wealthier clients protect and preserve their assets from their divorcing spouse is 'trust.' Today, in an era in which billionaires dominate the Forbes 400 list, when freshly minted MBAs just a year or two out of B-Schools garner seven-figure bonuses before the age of 30, the trust is becoming more and more the device of choice to shield assets from the grip of those who the creator of the trust deems undeserving of a share of those assets.
Malpractice 'Notice' and 'Claims' Issues In Suits Against Entertainment Attorneys
November 29, 2006
The increase in recent years in malpractice claims against lawyers has impacted entertainment attorneys, too. If a malpractice complaint is filed, will the attorney's liability policy cover the suit? Two primary concerns here are whether the attorney has timely notified his or her insurer of a malpractice claim and how to determine the number of malpractice 'claims' for purposes of the insurer's malpractice-coverage obligations.<br>A recent ruling by the U.S. District Court for the Western District of Wisconsin addressed both issues, as well as which state's law should apply in interpreting malpractice policies.
NY Courts Define 'Egregious Conduct'
November 29, 2006
Like New Jersey, New York generally does not consider fault when distributing marital assets. (<i>See</i> Strober L: Marital Misconduct and Alimony. <i>The Matrimonial Strategist</i>, November 2006.) However, there are circumstances under which both states will factor in fault.
Base Salaries Up; Bonus Levels Mixed
November 28, 2006
The recently released 2006 Altman Weil Law Department Compensation Benchmarking Survey of U.S. corporate law departments, published in partnership with LexisNexis Martindale-Hubbell, shows base salaries up across the board for in-house lawyers in 2006.
Using Business Plans in Recruiting Lateral Partners
November 28, 2006
Practice group structures, marketing departments, Chief Information Officers, even off-site operations centers ' each of these now commonplace elements of big law firm life is a manifestation of the business focus these firms have adopted. We all see it, with varying degrees of approval. Global law firms now develop and follow business strategies. Slowly, these firms are bringing a similar business focus to their lateral partner recruiting. For partners who think they might switch firms at some point, and for firms doing battle for talent in the lateral market, bringing a business perspective to your analysis can save a lot of time and energy. A properly prepared business plan will prevent the loss of countless (otherwise billable) hours and, more important, help avoid making the wrong move.
<b>Op-Ed:</b> 'Progress Is Our Most Important Product'
November 27, 2006
The progress that law firm marketing has made is in large part due to the staying power of the key marketing executive, and that staying power requires a level of maturity, sophistication and a clear understanding of how to play in the same sandbox as the owners. Marketing programs are not easy to sell, but like other 'purchases' the purchaser/owner can be persuaded to approve the marketing budget if the case can be made that 'this is about progress' that will make the firm more viable and, yes, profitable. Chief Marketing Officers and Directors need to step up and stand behind their programs. Of course that means developing a plan that doesn't have an unrealistic end game. Too often, over-zealous CMOs and Directors reach for the moon and wind up 'cratering.' This does not have to happen if one recognizes that, in order to succeed, one needs to develop a plan, implement the plan using a step-by-step program, and deliver on the plan in a manner that demonstrates progress. Let's be honest; no one expects the infamous 'ROI,' but owners do expect progress and this is key to winning the hearts and minds of law firm owners.
