Another Firm Comes To Play In Biglaw Bonus Season

The rapid fire announcing of Biglaw bonuses is continuing. The bonus season began when Milbank took the plunge and announced bonuses. Even though Milbank announced earlier than usual, Cravath quickly matched that scale. That kicked off a frenzy of bonus announcements that we here at Above the Law have just been eating up. Now Proskauer has announced the bonus schedule for their own associates.

The bonus scale that Proskauer announced — the same as the other Biglaw firms that have announced this bonus season — is as follows:

Class of 2019 – $15,000 (pro-rated)
Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012 – $100,000
Class of 2011 – $100,000

Bonuses will be paid by the firm on December 20th. (Full memo on the next page.)

Remember, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for all salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for your help!


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Pepper Hamilton And Troutman Sanders Planning To Merge

Two Biglaw firms are engaged in advanced merger talks with an eye toward creating a new 1,000-attorney firm with over $800M in revenue. Philadelphia-based Pepper Hamilton and Atlanta-headquartered Troutman Sanders confirmed the negotiations are underway in statements sent around this afternoon.

The merger would combine Am Law 68th-ranked Troutman with Am Law 105-ranked Pepper Hamilton. The firms boast a combined 26 offices, some of which will have to be merged — both firms have outposts in New York, D.C., and Orange County — but all in all, the firms are mostly not stepping on each other’s turf.

The move gives Pepper access to the Chicago market and Troutman access to Boston and Philadelphia. Combined, the firms will have a robust California presence with attorneys in Orange County, L.A., San Diego, San Francisco, and Silicon Valley.

The major sticking point in a lot of mergers — synchronizing business expectations — doesn’t seem to be an issue with the firms. Troutman has an RPL of $809K, while Pepper says its RPL is $789K, making for a relatively small gap. When it comes to PPP, Troutman is just barely in the million-dollar club but Pepper is sitting at $830K. That’s a tougher chasm to cross, but given the geographies involved, it may not be as big a deal as it seems.

There’s still a long way to go before this is all wrapped up. Pepper was trying to tie up with Reed Smith and that fell through, so nothing should be taken for granted. But a public announcement is a huge step in the process.

Abracadabra! Magic Circle Firm Enchants Associates With Bonus Bucks

Last week, Milbank set the scale for 2019 year-end bonuses, and once Cravath decided to hop on board, the rest of Biglaw was essentially granted permission to join in the fun and make their announcements as well.

One Magic Circle firm has already announced its bonus news, and now another is ready to enchant its associates with bonus bucks. Hocus pocus! Which Magic Circle firm just pulled money out of its hat?

It’s Freshfields, and the firm has adopted the Milbank scale for its U.S. associates:

Class of 2019 – $15,000
Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012 – $100,000
Class of 2011+ – $100,000

Read the full bonus memo on the next page. Freshfields will make money magically appear in associates’ bank accounts on December 13.

Remember everyone, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for all of your help!


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Biglaw Celebrates Solid Revenue Before The Bottom Falls Out

The nine-month numbers are in, and law firms are still making money.

To be a little more specific, the Citi Private Bank Law Firm Group collected data from 190 firms and found that revenue continues to creep up, prompting victory laps around the law firm world. That expenses grew almost as much is a trifle.

At least expenses didn’t swamp revenue growth, so that’s good! Revenue growth clocked in at 5.1 percent over the first nine months while expenses grew by 4.7 percent. Conveniently, 4.7 percent was also the portion of revenue growth driven by billing rate growth so we’re pretty much just making clients pay more and calling it growth. That sounds sustainable!

Looking at the results by revenue size, Am Law 51-100 firms continued to outperform other segments in revenue and demand growth, up 5.8% and 1.8%, respectively. While the collection cycle lengthened for these firms, Am Law 51-100 firms also had the highest inventory growth (at 7.5%), setting them up well for a strong end to the year. Am Law 1-50 firms may have trailed Am Law 51-100 firms in demand growth, but in another positive trend this year, we have seen demand performance for these firms continue to improve throughout the year, up 0.8% for the first nine months—much better than the 0.7% decline we saw during the first quarter. Am Law 1-50 rate increases continued to outpace other segments, up 5.2%, helping to drive the 5.4% growth in revenue (second only to the Am Law 51-100 firms), and in spite of the 1.6% lengthening of the collection cycle. With strong inventory levels (up 7.1%) for Am Law 1-50 firms, the outlook for the rest of the year is very positive.

That’s actually an interesting development since the growing gap between the Am Law 1-50 and 51-100 has defined the last several years. These numbers suggest that the second 50 have gained some traction.

Of course, this all depends on the bottom not falling out of an economy that looks increasingly like it’s been juiced up. General counsel are already predicting the recession and planning to cut back on costs — not great when demand is already stuck in molasses. Firms have quietly been stockpiling bankruptcy talent throughout the year because they know what’s coming.

Another lesson of the first nine months is that bigger remains better, with global firms performing better than the rest of the legal landscape:

National firms saw solid revenue growth (5.6%), driven by a combination of 1.4% demand growth and 3.8% rate increases. Inventory growth of 5.9% signals a strong year-end.

Regional firms were the only segment to continue to see a demand decline, though it moderated from the 1.3% decline reported for the first half, to 0.5% decline for the nine-month period. Revenue growth of 3.5% trailed all segments, far below the 4.2% growth in expenses. Looking ahead, 6.2% growth in inventory means that there is opportunity for these firms to see a decent end to the year.

While the report concludes by trying to put a happy face on all this, it’s getting harder and harder to feel good about revenue growth driven almost entirely by just asking clients to pay more. That’s a business model that doesn’t bode well when clients have to start tightening their belts.

Next year could get ugly.

Law Firm Revenues Rise as Demand Accelerates, Citi Reports [American Lawyer]


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

ATL’s Legally Themed Halloween Costume Contest: The Winner (2019)

You came, you saw, you voted, and one submission absolutely dominated in this year’s legally themed Halloween costume contest. Our winners ran away with 30 percent of the vote this year. Making legally themed Halloween costumes isn’t an easy feat, and many of this year’s submissions were quite creative. As usual, we applaud the brave souls who subjected themselves to our judgment.

And now, the moment you’ve been waiting for. Who won our annual costume contest?

An entire class of 1Ls from Florida International University Law stole the show this year. Here they are, continuing the tradition of dressing like Thomas E. Baker, their beloved Constitutional Law professor, who wears a “school uniform” each and every day: A long-sleeved white dress shirt and tie with black pants. This has been done every year since 2012. Well done, everyone — especially Professor Baker!

Congrats on winning our annual costume contest. Email us collect your prize.

Thanks to everyone for submitting costumes and for voting (sometimes on numerous occasions). We sincerely hope you’ll submit a costume again for next year’s competition. Our readers are part of what makes Above the Law such a great website.


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Connecticut Supreme Court Restores Reason To Embryo Wars, Also Punts On Key Questions

An increasing number of couples are turning to assisted reproductive technology, and specifically in vitro fertilization (IVF), to have children. As a result, more and more courts are struggling with the legal difficulties that arise when relationships end, but cryopreserved embryos remain. The Connecticut Supreme Court is the latest high court to take on one of these legally sticky and emotionally wrought situations.

A Classic Fact Pattern

Jessica Bilbao and Timothy R. Goodwin married in 2011, and started fertility treatments shortly thereafter. They successfully conceived a child. But when they filed for divorce a few years later, they still had remaining cryopreserved embryos stored with their fertility clinic. Prior to going through IVF, the couple completed pretty basic and standardized forms with the clinic indicating their wishes should certain scenarios happen — these scenarios included death or divorce. The couple jointly filled out a form and checked the box on the fertility clinic paperwork that — in the case of the divorce — they wished for their embryos to be discarded. Both parties initialed the selection and signed the form.

At the time of the divorce, as sometimes happens, one party was no longer happy with that selection. In this case, Bilbao asked the court to enforce the agreement per their signed form. Goodwin, however, said he had changed his mind. He did not want the embryos discarded, but instead wanted them to stay cryopreserved in case the couple reconciled in the future. (Aww… that’s kinda sweet.) Alternatively, he asked that the embryos be donated to others for conception purposes.

Trial Court Craziness

In a bizarre and legally questionable decision, the trial court sided with Goodwin that the clinic form should not be enforced. The trial court reasoned that in entering into the form agreement, the contract lacked consideration between the parties themselves. Further, the trial court took issue with the clinic document being merely a “checkbox” form, and therefore not robust enough of a contract to be enforceable. Goodwin should have been pleased, right? Not so fast. The trial court then went on, after finding the form unenforceable, to weigh the parties’ interests in the embryos. The trial court then found that Bilboa had a greater interest in the embryos than Goodwin, and awarded her the embryos accordingly. Not a ruling either party wanted! Perhaps this is a good time to mention that both parties were unrepresented — proceeding pro se — in the divorce proceedings.

Reason Reinstated Upon Appeal

Having succeeded in invalidating the contract but still losing the right to the embryos, Goodwin appealed to the Connecticut Appellate Court, which then transferred the case to the Connecticut Supreme Court. In any event, two weeks ago, the Connecticut Supreme Court’s ruling brought back some degree of sanity for all of Connecticut fertility practitioners, and thousands of patients in Connecticut who may have been panicking that the forms they had signed with their clinics were legally unenforceable.

In Support of Checkboxes

While the trial court denigrated the use of checkboxes on the form the parties signed, laughably, the Connecticut Supreme Court pointed out that even “Connecticut trial courts ‘routinely use’ checkbox forms to issue legally binding orders.” Ouch, that’s a third-degree burn. So good news, fertility clinics, there is no need to rewrite those checkbox forms. Checkboxes FTW.

The court further determined that there was, in fact, legally valid consideration for the contract entered into by the parties in signing the form. “The plaintiff and defendant made mutual promises to contribute gametic material, and the reproductive services center promised to store the pre-embryos in exchange for the certainty provided by the parties’ election of a disposition in the event of the parties’ divorce.” Yeah, exactly. Kind of … obvious.

Side-Stepping Personhood?

On appeal, Goodwin argued that the trial court had incorrectly distributed the embryos as “property” when they are, instead, human life. He similarly argued, even if deemed property, the trial court should have applied a presumption in favor of preserving the embryos, on the basis that embryos should count as human lives. The court declined to touch these arguments with a 10-foot pole, noting that they had not been made at the trial court level, and therefore the court lacked an adequate record on the topic. Instead, Goodwin had merely argued at the trial court-level that he should be able to change his mind.

Of course, by not ruling on this issue, the court sort of conveys how it feels on the merits of the question. If the court thought that human lives were being killed in this context, they might have found a way to hear the arguments. Yes, technically they avoided addressing the issue. But I would say the avoidance speaks volumes on the court’s stance.

By finding that the form was an enforceable contract, the court also avoided deciding the state’s approach if there is no agreement in place. The court spends time addressing the various approaches, including a balancing of the interests, as well as an approach called the “contemporaneous mutual consent” approach. That theory would adopt the general principle that conception can never happen, even if the parties agreed at the time the embryos were formed, unless the parties still agree to conceive later in time. But the Connecticut Supreme Court, again, specifically declined to address what approach the state might take if there hadn’t been an enforceable agreement in play stating that discarding the embryos was the couple’s mutual choice.

Don’t Get Too Comfortable Relying On Those Forms

The court interestingly also notes that its decision only applies to contracts, if enforced, that will not result in procreation. “We do not decide whether the contractual approach applies in a scenario that would force one party to become a genetic parent against his or her wishes or, if the contractual approach does apply, whether such a contract would be unenforceable for other reasons, including public policy.”

Tim Schlesinger, Missouri assisted reproductive technology attorney and embryo disposition expert, points out that the court is acknowledging the reality that it is much easier to apply the contractual approach when the contract does not require one party to become a genetic parent against his or her wishes. Without mentioning the constitutional right not to procreate, according to Schlesinger, the Connecticut Supreme Court’s decision “illuminates the reluctance of courts to allow one progenitor to force the other to become a genetic parent against their wishes, and leaves the Connecticut courts room to prevent such a thing from happening.”

Schlesinger also notes that he is not aware of any other court in this position making that distinction, versus just remaining silent on the issue. And that, he thinks, is important.

So, to all of the Connecticut women going through IVF in their late 30s or early 40s, be mindful of the possibility that love, sometimes, doesn’t last forever. Even if you think your partner has agreed to give you control over embryos, maybe consider leaving some unfertilized eggs cryopreserved… just in case the current spouse/partner/sperm-provider has a change of heart. In such an instance, Connecticut might be open to humoring such fickle feelings directly affecting your ability to have a child.


Ellen TrachmanEllen Trachman is the Managing Attorney of Trachman Law Center, LLC, a Denver-based law firm specializing in assisted reproductive technology law, and co-host of the podcast I Want To Put A Baby In You. You can reach her at babies@abovethelaw.com.

Fill up on Legal Podcasts

Turkey isn’t the only thing you’re going to want to load up on this Thanksgiving. Whether you’re in a food coma or driving to grandma’s house, Legal Talk Network has the perfect legal podcasts to keep you educated and entertained this holiday season. If you’re looking for tips on handling stress in the profession, tune in for candid conversations about addiction and stress. Or if you’re interested in different kinds of system reform, tune in to hear about the experiences of lawyers fighting for death row and criminal justice reform. Or if you’re curious about current events, catch the funny and thoughtful takes of other legal professionals as they share their two cents. So while you sweat over the oven, pull up Legal Talk Network on your favorite podcast app and enjoy informational and engaging legal content designed with the busy lawyer in mind.

Why Criminal Justice Reform Matters (Part 1)

Criminal justice reform advocate and 2019 Clio Cloud Conference keynote speaker Shaka Senghor shares his personal story of redemption along with his experience with gun violence trauma and how legal professionals can shift their perspectives on justice reform.

The Alter Ego Effect, with Todd Herman

Todd Herman talks about his book, The Alter Ego Effect, in which he explains what the “alter ego effect” is, how to use an alter ego to overcome your biggest challenges, and whether you can still be authentic while you are pretending to be someone else.

The Angel of Death Row Edition

Hear the personal stories behind the death penalty in America. Andrea Lyon, dubbed “The Angel of Death Row” by the Chicago Tribune, shares about the challenges of advocating for justice for death row inmates and why she maintains her belief in the power of redemption.

How to master the jury selection process

Jeffrey T. Frederick dives into his new book, Mastering Voir Dire and Jury Selection, Fourth Edition: Gain an Edge in Questioning and Selecting Your Jury, which expands on ways to ask the right questions that will uncover needed information.

Data Literacy Guidance for Law Firms

What does it take to become data literate and data competent as a lawyer? LexisNexis CPO Jeff Pfeifer discusses the various tools and training that help lawyers gain deeper insights into the data they use on a daily basis and how to use it.

Innovations in the Future of Law Practice with Bill Henderson

In today’s ever-changing legal landscape, the Institute for the Future of Law Practice (IFLP) facilitates programs that help both law students and practicing lawyers develop specific skills. Bill Henderson discusses the motivation behind the founding of IFLP.

Birds, Books, And Blogs. Oh My!

A bird is loose in the Harvard Law School library, the relevance of libraries is questionable in the age of digital research, and Deadspin’s entire staff resigned causing a significant loss to the blogosphere. Plus, arguments against Halloween.

Inside the Controversial Purdue Pharma Settlement

Jonathan Novak from the Fears Nachawati Law Firm discusses the proposed settlement by Oxycontin maker, Purdue Pharmaceuticals LP, Purdue Pharma’s bankruptcy filing, and whether the remaining states will agree to a settlement or take their fight to the courts.

Exploring Gambling Addiction and the Path to Recovery

It’s common for legal professionals to struggle with addiction, but gambling addiction is often overlooked. Jeff Wasserman talks in-depth about his experience as a recovered addict and what he’s doing now to help others struggling with the same issue.

The Law Student Roundtable: Examining Stress–Offering Hope

The new Law Student Division chair, Johnnie Nguyen, discusses the division’s upcoming mental health initiatives including a roundtable discussion to highlight the factors driving student mental health issues.

It’s Almost Time for Law Jobs!

It’s finally happening. Law Jobs for Humans 2.0 is this Friday. We’ve already told you a bunch about it: it’s got more of what you liked and less of what you didn’t from the first Law Jobs for Humans; it’s got some of the “most interesting and innovative career renegades” in legal scheduled to speak at the event; we’ll even likely discuss Clio’s recent enormous fund-raising event in some way, shape, or form.  

We’ve also nailed down the list of speakers (mostly). We’ve got one or two still figuring out some specific logistics but expect this list and the associated agenda to be just about as final as it’s going to get. 

Innovators Runway 1: Early career edition

  • Miguel Willis, Presidential Innovation Fellow, LSAC
  • Felicity Conrad, Co-Founder & CEO, Paladin
  • Rebecca Williams, DC Legal Hackers Founder and Board Member
  • Jason Dirkx, Knowledge Management Counsel, Littler
  • Nikki Shaver, Director, Global Knowledge Management. Paul Hastings LLP
  • Selena Lucien, Founder, Small Claims Wizard

Innovators Runway 2: Mid-career edition

  • Nicole Clark, Founder and CEO, Trellis Research
  • Marla Decker, Managing Director, Lake Whillans
  • Linda Tvrdy, Founder, Daisy Debt
  • Tunji Williams, Co-founder and CEO, dealWIP and Director of Strategy for Transaction Management, Litera

Discussion: Building a Perfect Human

  • Carlos Gamez – Client & Partner Lead – Legal Technology Innovation, Thomson Reuters
  • Lori Lorenzo – Managing Director Chief Legal Officer Program, Deloitte
  • Jacquie Champagne – Director of Talent Acquisition at Elevate Services

Between/in addition to these amazing panels, we’ll also have a speed networking event and plenty of time for attendees to connect and discuss the new legal employment landscape.

We’ve basically tripled attendance from the last go-round in Chicago, so only a few tickets remain. If you want to meet some amazing people and talk about future-proofing your career. This Friday is the time. Law Jobs for Humans 2.0 is the place. See you there.

Tax Court Decides Whether A Tax on Marijuana Sales Is An Unconstitutionally Excessive Fine

(Image via Getty)

Current tax laws are killing the buzz for legal marijuana sales dispensaries. Section 280E disallows any business-related expenses connected to the trafficking of Schedule I controlled substances, which includes marijuana. The IRS and the courts have consistently held that Section 280E is clear on its face when they mean all expenses are nondeductible. However, this next case takes an interesting twist as the taxpayer and its lawyers try to show the U.S. Tax Court that Section 280E is unconstitutional.

Last month, the U.S. Tax Court decided Northern California Small Business Assistants, Inc. v. Commissioner. There, the Court considered whether Section 280E of the Internal Revenue Code is an excessive fine in violation of the Eighth Amendment.

The facts are typical. The taxpayer was a corporation operating a marijuana dispensary business in California where it is legal. The IRS audits the taxpayer and disallows all of the taxpayer’s business expenses citing Section 280E. The IRS then proposes $1.5 million dollars in taxes and penalties for one year. The taxpayer disagrees and petitions the U.S. Tax Court.

The case was interesting enough to warrant a decision from all 15 judges. While all of them ruled that the IRS’s disallowance was proper, the judges were split on whether Section 280E implicates the Eighth Amendment of the Constitution. To do so, the court had to determine whether Section 280E had the effect of a penalty.

In the majority opinion, 10 of the judges held that Section 280E’s disallowance of marijuana-related business expenses was not a penalty. The majority acknowledged that Congress had the unquestionable Constitutional right to create tax laws. Furthermore, they also noted that the Supreme Court has held that tax deductions are granted only by Congress.

In the dissenting opinions, three of the judges ruled that Section 280E was a fine, although they joined the majority siding with the IRS because there was no finding of excessiveness. Judge Gustafson starts by stating that the Constitution allows Congress to tax income. The Constitution does not define income but Judge Gustafson states that income is defined as gain which is only determined after all relevant businesses expenses are deducted from gross income. To tax solely on gross income could lead to an unfair situation where the taxpayer may not have any money to pay the tax.

For example, if a taxpayer earned $100 but his business expenses totaled $150, he would realize a loss of $50 and under normal circumstances he would not be taxed because it would add insult to his financial injury. If only his gross income was taxed he would have to pay income tax on the $100 even though he has no money after expenses.

Judge Gustafson states that for a payment to be a penalty, it must be imposed as punishment for an unlawful act. It does not matter whether a payment is labeled differently, like a tax, a tariff, or a fee. In this case, according to the legislative history, Section 280E was enacted with the explicit goal of deterring and penalizing marijuana trafficking. By disallowing deductions, income taxes will increase and the profit motive will decrease. He believes this has the effect of punishment even though it is not explicitly stated as such.

Two judges had no opinion on whether Section 280E was a fine since there was no determination on excessiveness.

So while the majority of the Tax Court judges ruled that Section 280E was not a fine, three held that it was a fine and could be excessive in violation the Eighth Amendment of the Constitution. And two are on the fence. If they can disagree, so could other judges and even other circuits.

Professor Bryan Camp over at the TaxProf Blog believes that the majority got it right.

He believes that Congress has the Constitutional right to tax gross income even if business deductions are disallowed. Why? Because if Section 280E can be a penalty, then so can Section 163(h) which allows the ever-popular home mortgage deduction. In other words, the home mortgage interest deduction punishes renters for not owning a home. Also, since hobby losses are nondeductible, he believes that this would open the doors for tax protestor hobbyists to argue that they are being penalized.

In short, he’s arguing that this can open Pandora’s Box.

Should Congress have the “unquestionable” power to tax as the majority of the Tax Court judges believe? Most believe that it is better for the legislature to pass tax laws as they are directly accountable to the people. But what if Congress wanted to pass a law that taxes a certain group of people differently? For example, some believed that the Tax Cuts and Jobs Act’s $10,000 limitation on state tax deductions unfairly targeted high tax states where the residents predominately voted Democratic. It was so bad that it got to the point where New York and other blue states sued. That lawsuit was recently dismissed.

While any tax law can treat people differently, when does it get to a point of being a penalty that can implicate the Eighth Amendment? Perhaps a good place to start is to determine whether a tax punishes or subsidizes behavior. Some taxes are known to be penalties. For example, “sin taxes” are taxes imposed on certain goods (such as alcohol and cigarettes) that are known to be harmful to society.

But some tax laws act as subsidies. For example, the federal government provides tax credits for the purchase of alternative fuel cars in order to boost sales and promote use of alternative fuel. These credits do not covertly penalize those who purchase gasoline engine cars assuming the prices of the cars were fairly steady before the tax and will continue to remain that way.

Some tax laws can be neither subsidies nor penalties. It can just be a means to raise revenue. Or to curb abusive transactions.

Of course, the line can be difficult to draw. Reasonable people will have different opinions.

While the Tax Court’s majority decision dealt another blow to marijuana advocates trying to fight Section 280E, the split decision opened the door for courts to consider whether the Section may be unconstitutional. If enough judges disagree, the issue may end up being decided in the high court.


Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.

Another Biglaw Firm Matches Bonuses, Plus Extra Cash For High Billers

Bonus season really is the best time of the Biglaw year. Sure, you probably worked a ton and had to sacrifice your personal life to do so, but at least you get a nice big bonus in recognition of all that hard work. But just how generous will those bonuses be?

That question was largely answered when Milbank acted first in announcing bonuses, then Cravath matched that scale. Now Cadwalader has announced that their associates will also be compensated on those market rates as well.

And the market scale that pretty much all the big firms will be following is:

Class of 2019 – $15,000 (pro-rated)
Class of 2018 – $15,000
Class of 2017 – $25,000
Class of 2016 – $50,000
Class of 2015 – $65,000
Class of 2014 – $80,000
Class of 2013 – $90,000
Class of 2012+ – $100,000

Plus, the exciting part for those who’ve notched a particularly busy year, is that associates and counsel who bill over 2,200 hours will receive bonuses of 120 percent of their class year. Which is a nice extra way to say thank you. Bonuses will be paid by the firm in February. (Full memo on the next page.)

Remember, we depend on your tips to stay on top of important bonus updates, so when your firm matches, please text us (646-820-8477) or email us (subject line: “[Firm Name] Matches”). Please include the memo if available. You can take a photo of the memo and send it via text or email if you don’t want to forward the original PDF or Word file.

And if you’d like to sign up for ATL’s Bonus Alerts (which is the alert list we also use for all salary announcements), please scroll down and enter your email address in the box below this post. If you previously signed up for the bonus alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each bonus announcement that we publish. Thanks for your help!


(Click to enlarge)

headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).