Wednesday, April 30, 2003
Corr Cronin Representing Hearst Corporation in Suit by Seattle Post-Intelligencer against Seatle Times
New York Times -- April 28
The Seattle Post-Intelligencer and its parent company, the Hearst Corporation, filed suit in Seattle against the Seattle Times Company, hoping to block any attempt by The Times to dissolve a 20-year-old joint operating arrangement between the papers.
On Saturday, The Times announced that after three years of losses it had been trying, without success, to modify the agreement that the papers use to share advertising, circulation and production costs. Under the current profit-sharing agreement, The Times receives 60 percent of what remains after common expenses; The Post-Intelligencer receives 40 percent.
Network member law firm Corr Cronin represents Hearst Corporation in that lawsuit.
Additional Coverage -- Seattle Post-Intelligencer, Associated Press.
The Value of Teamwork
Firms embracing client teams
Alexei Oreskovic -- The Recorder -- 04-23-2003
Client teams are models that one chairwoman calls the "eye and ear of our client" and that some tout as a key to client retention and increased revenues. Of course, in an industry characterized by independent rainmakers, notions of teamwork and sharing clients are not always welcome.
Seeking Credibility as a Youthful-Looking Lawyer
A few points to keep in mind for youthful-looking lawyers
Holly English -- New Jersey Law Journal -- 04-29-2003
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Often, people who look very young tend to overcompensate. They are more aggressive than is necessary, they act overly pompous or they are arrogant, irritating people with know-it-all attitudes right from the start. Try to avoid coming on too strong as you begin practice.
Sometimes people overcompensate by dressing in a way that is overly formal or severe. Whether you are a man or woman, remember that including some personality in your dress is a sign of confidence, not inexperience or audacity. So wearing a striking tie or shirt, a colorful scarf or antique jewelry, is a mark of one's individuality. Very trendy wear or overly casual garb would probably not work in your favor if you're combating a "too young" appearance.
Dressing down automatically makes people look younger, so be careful if your firm has casual Fridays; you will cement in people's minds an impression of looking overly young if you don't choose your casual wardrobe with care.
Often, newbies are so focused on proving their professional abilities that they neglect interpersonal skills, which are critically important. Remember that a major objective in relating to clients is to make them feel comfortable and at ease. Your clients want to trust you and you need to build that trust.
Experienced lawyers are marked by a natural manner, while less experienced lawyers sometimes are afraid to show their personalities and feel insecure joking around and being relaxed. A confident person isn't afraid to show his true personality.
Some younger practitioners openly express a lack of confidence. They say things like, "Gee, I just don't know what to do" or "I'll never make it here." Also, they might indulge in too much public hand wringing and confide in others that they are scared or intimidated.
Correctly or not, many colleagues will write these people off. So be careful about fretting too openly. Make low-key efforts to seek out help, and remember that everyone has had to start out and learn their way around. It can be done, and you will do it, too.
The most important thing is to keep your eyes open and learn, learn, learn. Watch more experienced lawyers as they interact with clients and colleagues to learn the most effective ways to get things done.
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Florida Supremes Define Limits for Noncompete Agreements
Court rules that former employees are tethered to pre-1996 noncompete agreements despite new ownership
Laurie Cunningham -- Miami Daily Business Review -- 04-29-2003
In a unanimous pro-business decision, the Florida Supreme Court has ruled that corporations that acquire other companies may enforce noncompete agreements reached under the previous management. Employment law experts said the decision, limited to noncompete agreements executed before 1996, reassures Florida businesses that employees who accompany mergers are more likely to stay.
Settlement With Analysts Could Fuel Litigation
Jeff Chorney -- The Recorder -- 04-30-2003
The Recorder reports: The California Department of Corporations expects a new wave of securities litigation now that federal regulators have reached a historic settlement with investment banks over analyst conflicts of interest. Although regulators pitched it as a "global settlement," the deal allows investigators to share with the private bar the evidence they collected and doesn't protect the participating investment banks from claims.
Sunday, April 20, 2003
ACCA CLO Survey Results Published by Altman Weil and ACCA
The American Corporate Counsel Association (ACCA) and Altman Weil, Inc. surveyed the Chief Legal Officers (CLOs) in attendance at ACCA's 2002 Annual Meeting to capture their thinking on a number of issues and concerns for the third year in a row. This year's results reveal again that over 50% of the CLOs surveyed reported they have fired or are considering firing at least one of their outside law firms in 2002, citing 'lack of responsiveness' as the primary reason.
Notable Results:
-- Minimizing risk is top way in which CLO's best add value to their company
-- Top reason to consider firing a law firm: failure to control expenses and disbursements
-- Most CLOs are new to the job (57% less than 5 years; 23% 5 to 10 years)
Survey Reveals Factors Considered Important by In-house Counsel
A survey of in-house counsel was conducted by Altman Weil to understand the current status of legal decision makers and their law departments worldwide, to identify their selection process and preferences, to learn which marketing tools they rely on for making decisions, to determine their awareness of and preference for specific legal networks..
Key points revealed in the survey were:
-- Many corporate counsel intend to closely scrutinize their outside counsel and, in many cases, will continue to consolidate the number of firms that they use. Consolidation appears to be more prevalent in the US than in other jurisdictions.
-- Many US corporate counsel plan to expand their law departments while the majority of their colleagues outside the US will maintain or even reduce the size of their law department.
-- Ninety-two percent of chief legal officers or general counsel select or direct the selection process of outside counsel.
-- The most important factors in hiring outside counsel are expertise in a specific area; perception of high quality work; reputation of an attorney in the firm; fee structure; local market knowledge and (for international matters) languages spoke.
-- One-third of all respondents maintain a list of approved outside counsel for work performed domestically; 37% maintain such a list for international selection of law firms and 41% do not maintain a list at all.
-- When asked how they identify new outside law firms to represent their organizations, most favored the traditional means of marketing: referrals, beauty contests and articles written by the firm's lawyers scored highest of seventeen choices. Internet directories, such as www.martindale.com, also did quite well.
-- Other factors measured by the survey were "high quality work," "reputation of attorney," "responsiveness," "firm brand," and "local market knowledge".
Complete survey results are available online at: http://www.lexmundi.com/publications/2002survey.html
Fees Collected, Business Origination Top Determinants in Partner Compensation, Survey Reports
Personal fees collected and business origination are the two most important factors determining partner compensation in law firms according to the newly released Altman Weil 2003 Survey of Compensation Systems in Private Law Firms. Contribution to firm management falls at the midway point in the 17 compensation factors ranked; and community involvement, professional involvement (such as writing, speaking or teaching), and seniority are the three least important compensation measures, according to the Survey.
“These findings reflect what we’re seeing in the law firm market,” notes Altman Weil principal James D. Cotterman. “Increasing competition and a slow economy combined with a desire to generate quick increases in partner income create a sharp focus on bottom-line profitability. Behaviors contributing to that focus are the ones rewarded.”
Business Origination Credits
Firm size is a determining factor in the existence of a formal system of business origination credits. The Survey reports 71.9% of law firms with 100 or more attorneys use formal origination credits in the compensation process, compared to 63.6% of firms with 50-99 lawyers, and only 40.1% of firms with fewer than 50 attorneys.
“It is obviously easier to have a good intuitive understanding of how new business is generated in smaller firms than it is in larger firms,” Cotterman explains. “However, it is good to see many larger firms approach this issue without resorting to formal credit systems.”
Two-Tiered Partnerships
Two-tiered partnership structures are found in 65.6% of law firms with 100 or more lawyers, but in only 28.1% of smaller firms. Overall, in the lower tier of partnership, 25% of partners make capital contributions to the firm; 27.2% have voting rights in the election of senior firm management; and, 53.3% share in profits beyond their salary or draw.
Associate Compensation
The 2003 Survey reports that 62.5% of law firms with 100+ attorneys have some sort of lock-step feature by class for associate compensation. The same is true for 42.4% of 50-99 lawyer firms, and only 13% of smaller firms. When a lock-step program is not in place, the performance characteristics that most affect associate salary are: billable hours, partner ratings, business origination and personal fee receipts.
Signing bonuses were paid to only 24.2% of new associates overall, and to 50% of associates at 100+ lawyer firms. 87.8% of associates are eligible for year-end bonuses.
Compensation Committees
Larger law firms rely more heavily on compensation committees, with 59.4% of 100+ lawyer firms having separate committees, compared to 45.5% of firms with 50-99 lawyers, and 18.8% of smaller firms. The most common configuration is that of a separate committee that may overlap the firm’s management group. Committee members in a majority of firms are elected by the partners.
The Altman Weil 2003 Survey of Compensation Systems in Private Law Firms is based on data collected from 302 law firms in the fall of 2002. All Survey data is reported by size of firm and form of organization, including proprietorship, partnership, Professional Corporation, LLC and LLP. The Survey is available from Altman Weil Publications for $325. Orders and inquiries may be made by calling 1-888-782-7297 or by visiting the firm’s website at https://store.altmanweil.com/.
Altman Weil Publications conducts and publishes numerous surveys on the legal profession including the Survey of Law Firm Economics, the Managing Partner and Executive Director Survey, the Paralegal Compensation Survey, and the Retirement and Withdrawal Survey for Private Law Firms. For additional information visit our website at http://www.altmanweil.com/.
Tuesday, April 15, 2003
ALTMAN WEIL DIRECT -- April 15, 2003
Contains the following articles described as follows by Altman Weil:
Law Firm Debt: An Early Warning System
The recent demise of Silicon Valley powerhouse, Brobeck, Phleger & Harrison, is an all too vivid illustration of what can happen when a law firm takes on too much debt. Altman Weil principal James Cotterman provides five easy metrics you can use to evaluate your firm's debt burden.
http://www.altmanweil.com/about/articles/pdf/LawFirmDebtJDC.pdf
The Legal Food Chain
In law offices where there is not enough lawyer-level work to go around, lawyers will retain work that could be delegated to paralegals; and paralegals, in turn, will do work more appropriately assigned to secretaries. Altman Weil principal James Wilber discusses how law firms and law departments can get legal work into the right hands to increase effective utilization of paralegals and improve the organization's productivity and profitability.
http://www.altmanweil.com/about/articles/pdf/LegalFoodChain.pdf
Law Firm Sales Departments - Are You Ready?
While sales departments play a fundamental role in corporate business structure, the idea of utilizing direct sales in the legal profession is still in its infancy. Altman Weil consultant Debra Rhodunda describes the role of a law firm Sales Director and suggests some interim steps for firms that aren't quite ready to take the plunge.
http://www.altmanweil.com/about/articles/pdf/ASalesDirectorAtMyFirmDLR.pdf
Dis-Economies of Scale
Is bigger better when it comes to law firm economics? While common sense might suggest that larger firms can spread fixed costs across a larger number of lawyers reducing per lawyer costs, the numbers tell a different story.
http://www.altmanweil.com/pdf/DiseconomiesOfScale.pdf
