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Ed. Note: Welcome to our daily feature Trivia Question of the Day!

According to data collected by Law.com, for the most recent National Law Journal 500 ranking, which NLJ 500 firm employs the most attorneys in Los Angeles?

Hint: This firm has 311 lawyers in the city of angels.

See the answer on the next page.

Over the last few decades, companies like Securus have managed to obtain a cozy, government-supported monopoly over prison phone and teleconferencing services. Like any monopoly, this has pretty traditionally resulted in not only sky high rates — upwards of $14 per minute for phone calls — but comically poor service as well. Because these folks are in prison, and as we all know everybody in prison is always guilty, drumming up enough sympathy to convert into political momentum has long proven difficult, so regulatory fecklessness has proven easy to come by.

Recent efforts to do something about it were scuttled by FCC boss Ajit Pai, whose former clients included Securus. Pai not only routinely opposed efforts by ex-FCC Commissioner Mignon Clyburn to drive change in the prison telco sector, one of his very first acts as FCC boss was to pull the rugs out from underneath his own lawyers as they tried to support those reforms in court. The suddenly rudderless FCC ultimately and unsurprisingly lost due to a challenge by Global Tel*Link, which obviously wanted the status quo to remain intact. So now, while the FCC has the authority to cap interstate calling rates, the courts have declared it lacks the authority to regulate intrastate prison calling rates.

So it was odd to see Pai take to Twitter this week to first profess his breathless support for prison telco monopoly price gouging reform (clearly not true), and then state the fact his hands are tied in terms of actually doing something about it (something he’s largely responsible for):

Lawyers who actually followed this saga from gestation were…. not impressed:

Responding to complaints, Pai yesterday sent a letter to the National Association of Regulatory Utility Commissioners (NARUC), proclaiming that this is “unfortunately a problem the FCC is powerless to address,” and “calling for states to take action.” The same states he’s ironically been trying to argue lack the authority to protect consumers from telecom monopoly harm in other areas of telecom, like residential monopolies, net neutrality, and consumer privacy.

But however bad residential telecom is, prison telecom is worse. Securus and other such companies are part of a dangerously cozy and captive market, where prisons get paid upwards of $460 million annually in “concession fees” (read: kickbacks) to score exclusive, lucrative prison contracts. In this comically absurd environment, the service pricing and quality are just about what you’d expect. Government oversight of these businesses has been virtually non-existent, despite accusations that these companies have allowed some law enforcement to monitor what should be privileged attorney client communications and that they have been embroiled in location data scandals.

FCC Boss Ajit Pai Pretends To Care About A Prison Telco Monopoly Problem He Helped Protect

More Law-Related Stories From Techdirt:

Trumpian Loudmouths Apparently Losing Interest In Parler With No One To Play Victim To
CBP Has Access To Billions Of License Plate Images Collected By Private Companies
Judge Benchslaps Richard Liebowitz Again Over His Request To Not Have To Tell Everyone About Previous Sanctions

Being a lawyer is an extremely stressful profession. I know this for a fact because I feel the stress quite often and my friends who are lawyers tell me the same thing. Studies have confirmed that lawyers are very stressed out and are thus prone to being dissatisfied with their jobs.

That is why it is so important to take time to yourself and to go on vacation. As the practice of law seems to permeate all hours of the day and all days of the week, there are certain steps you can take to make your time off more relaxing and worthwhile.

The best way to escape the stress of our profession during a vacation is to utilize a “buddy” system. This is what we do at my firm. When an attorney goes on vacation, they must have a buddy who will handle any pressing tasks that come up. Of course, this system has its positives and negatives. It allows the vacationing attorney to completely unwind, knowing that their colleague will take care of anything case-related that comes up. On the other hand, this system gives the covering attorney more work and may force the covering attorney to make decisions on a matter with which they are not familiar. As with most things, I believe that striking a balance is key. In the age of remote desktops and email on personal devices, most attorneys can handle minor things that come up in their matters. At the same time, a buddy is still necessary to carry out tasks that the vacationing attorney may not be able to manage while sitting on a beach.

Another way to get the most out of your vacation is to prepare for it by organizing your schedule as much as possible and as soon as possible. The more notice you can provide to your supervisor or to the Court, the more likely you will be able to enjoy your vacation and get the rest you need. Many lawyers are remiss in taking vacation. They want to show the partners or their supervisors that they are always available and are willing to work around-the-clock. But even if you are working at a high-stakes law firm or prosecuting a high-profile criminal case, you still deserve to take time off and enjoy your vacation. As such, plan your time off and speak up. Do not be afraid to use your vacation time and assert your right to get away!

There is some debate when it comes to covering for yourself when you take vacation. Most companies and firms require those who are taking time off to set up an away message on their email system. But some firms believe that this sends the wrong message to clients as the firm wants it to appear that they are always available to the client. I am torn when it comes to this topic. Without an away message, it is very difficult to disconnect. On the other hand, I understand the concern about always being available to the client or to others. Thus, you must evaluate your own situation and make the best call for you and your employer.

In the end, you have to make these decisions and take the right steps to get away while not jeopardizing your employment or client relationships. As always, balance is the key. In this day and age, you cannot expect to be completely disconnected (unless you go to the most remote locations). But you can still get away, relax, and recharge your batteries. We are members of a stressful profession, so use your vacation time and get away!

Peter S. Garnett is an attorney at Balestriere Fariello who represents clients in trials, arbitrations, and appeals. He focuses his practice on complex commercial litigation and contract disputes from pre-filing investigations to trial and appeals. You can reach Peter at peter.s.garnett@balestrierefariello.com.

“It is  Friday. I think,” as I double-check my calendar on the phone.

⚙️ It could be any other day.

⚙️ I might have believed you if you told me it was Tuesday!

⬛ The days of the week have become suggestions.

⬛ ⬛ The differences among days are marginal at best.

⬛ ⬛ ⬛ The days are remarkably similar.

So, Tuesday or Friday? The choice is yours!

How do you keep your days apart?

  Are Fridays not special anymore?

Olga V. Mack is the CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat and Fundamentals of Smart Contract Security. You can follow Olga on Twitter @olgavmack.

The story of the stock market during the Great Recession doesn’t take long to tell. The markets crashed hard, with the S&P 500 dropping by roughly 50% in 2008. The economy continued to suffer through 2009 until a combination of stimulus, tax policy, and old-fashioned hard work served as the defibrillator-like jolt the economy needed to come back to life. By 2013, the market had regained its losses, and it continued trending upward until this year.

Unfortunately, during that 2007-09 bear market, many spooked investors cashed out to wait for more favorable conditions. By the time many felt comfortable investing again, the upswing was in full effect, and the price to re-enter the market was high. Not only had these overly cautious investors lost a huge portion of their starting wealth, they had also missed a crucial part of the recovery and ended up poorer long-term as a result. The average investor sold low and bought high, while those who sold their stock at the trough of the market made out like bandits.

Both these stories are quick to tell and easy to understand. So why does Biglaw seem hell-bent on repeating those same mistakes today?

Turtling Up

Don’t get me wrong, there’s every reason to be skittish right now about our country’s economic prospects. The American economy is woozy and wary, maybe even a little punch drunk. Things haven’t gone as apocalyptically bad as some expected, but it’s still been rough. The other shoe is currently set to drop at the end of this week, when federal unemployment benefits halt, with no extension likely to happen in the short-term. While pharmaceutical companies are making progress on a COVID-19 vaccine faster than any other in history, it’s still unlikely we’ll have one by the end of the year.

When we’re sitting in the middle of a once-in-a-century adverse event like COVID-19, it’s both instinctual and easy to play defense. Cutting costs and eliminating redundancies are evergreen strategies, but they’re especially easy sells in a bear market. Halting capital expenditures and investment in the long-term is par for the course. Many businesses are hoarding cash (sometimes literally — there’s a national shortage of loose change).

More than anything, though, our instinct seems to be to simply freeze in place while we see how things develop. COVID-19 and its uncertainties have caused law firms to massively slow down lateral hiring and mergers. Large infrastructure-building projects are being paused, and expansion efforts are being put on hold. Fear has caused our industry to freeze like a deer in the headlights — which, it must be noted, traditionally doesn’t work out too well for the deer.

Reading The Room

Running a business is about balancing risk and reward. Even in a pandemic, however, the laws of supply and demand remain in effect. There are millions of other actors in the economy making their own risk-reward decisions in real time, and those decisions in the aggregate affect any decision you’re setting out to make. When a horde of investors want a single stock, that stock gets more expensive to buy.

From a management perspective, this means when the competition is putting its resources into playing it “safe,” in many real ways it becomes more costly for you to do the same. You may get more bang for your buck by getting aggressive, since doing so is likely cheaper than usual. Conversely, when the market as a whole is going full bull, safe investments may be underpriced and more worthy of your time. When everyone else is paying a premium to zig, the cost of zagging goes down.

Many, many people lost their homes, livelihoods, and hope in the wake of the collapse of mortgage-backed securities, but a number of savvy investors made big bets, and gargantuan profits, during the uncertainty that followed. Warren Buffett put $5 billion into a battered Goldman Sachs to keep them going in 2008, and made back his investment plus over $3 billion more in profits in just three years. And Buffett was far from the only investor to make major returns off their moves in the scary days following the market collapse. There was money to be made by those with the gumption and foresight to make it. And with the rest of the competition playing defense, the field was wide open for those who were ready to make a play.

While Buffett and Berkshire Hathaway have leverage and cash resources that few of us can emulate, it doesn’t take billions of dollars to turn a recession to your firm’s advantage. It just takes smarts, savvy, and courage.

Bring It Back To Biglaw

So what does this mean for law firms? In my humble opinion, it means now, more than ever, is a time for smart strategic growth. If the rest of the legal market is piling into one investment class, the price of other investments presumably goes down. Smart firm managers can use that to their advantage.

Consider the lateral market, which has largely dried up save for the blue-chip, rain-making, guaranteed-profitability, turn-key practice groups. These unicorns command a hefty premium from firms that want to bring them over, even in the best of markets. In a risk-averse market like the one we’re facing today, the price to bring in a guaranteed rainmaker is as high as it will likely get.

So why buy high? Why spend firm resources on an inflated asset with razor-thin margins when you could instead spread that investment across several underpriced alternatives with bigger upside? Why not instead take a risk by bringing in some younger laterals without mega books but big potential for growth? If no one else is hiring in that market, a savvy firm manager could cherry pick an entire slate of future revenue-generating stars for the price of a single current-day blue chip partner.

Similarly, if the rest of the market is putting a pause on mergers, doesn’t it make sense to consider moving forward on the right kind of deal at full speed? If we’re fearful of a future downturn in the economy, the time to seek out or complete any contemplated merger is now. Get new staff onboarded, get redundancies reduced and efficiencies of scale in place, and be actively stronger as we prepare for the coming bear market. If we sit and wait for conditions to become more favorable, for everyone else to give us permission to be bold, opportunities will pass us by.

To be clear, I’m not saying cash out your firm’s retirement accounts, take them to Vegas, and hope for the best. Investments and risks always must be smart and calculated. I expect few, if any firms will make it through these next few years without feeling at least some pinch. But it’s during times like these that the moves get made that shape the coming decade.

Those who are bold enough to take risks will be the ones to reap the rewards.

James Goodnow is the CEO and managing partner of NLJ 250 firm Fennemore Craig. At age 36, he became the youngest known chief executive of a large law firm in the U.S. He holds his JD from Harvard Law School and dual business management certificates from MIT. He’s currently attending the Cambridge University Judge Business School (U.K.), where he’s working toward a master’s degree in entrepreneurship. James is the co-author of Motivating Millennials, which hit number one on Amazon in the business management new release category. As a practitioner, he and his colleagues created and run a tech-based plaintiffs’ practice and business model. You can connect with James on Twitter (@JamesGoodnow) or by emailing him at James@JamesGoodnow.com.

COVID-19 did more than just rock our healthcare system. It also caused great financial upheaval, and the legal industry — even those at elite Biglaw firms — was far from immune from the impacts. For months, Above the Law reported on the layoffs, furloughs, and associate salary cuts that were rocking the profession. But now it’s clear that, at least for some firms, the worst seems to be behind them.

Lowenstein Sandler had cut back on partner distributions, but there’ve been signs the firm’s financial condition is pretty solid. Indeed, firm chairman and managing partner Gary Wingens told Law.com that after halting partner distributions from February through April, the firm was able to pay higher than usual distributions in May and June.

“Clients and practices are far more resilient than we had feared heading into the recession, and even the practices that had a pretty severe demand shock in April are reversing and had come back pretty fast by June,” said Wingens.

The firm’s rebound has been buoyed largely by its bankruptcy and capital markets practices, but even its mergers & acquisitions practice is back to form:

“In our M&A practice, demand dropped by 35% year over year in April, but by the middle of June, demand was only off 5%,” Wingens said. “Not only did we see a lot of deals that went on hold in March and April come back, but we’re now seeing clients willing to do new M&A deals, even if they’re not physically getting together.”

Cozen O’Connor was working to avoid layoffs and associate salary cuts during the worst of the economic uncertainty caused by COVID, but they also put partner distributions on hold and furloughed some administrative staff members. Firm executive chairman and CEO Michael Heller confirmed that, as of July 1, partners’ pay checks were back to normal. However, no word yet on what’s happened to the furloughed employees.

At Bryan Cave Leighton Paisner, salaries (for anyone making over $40,000) were cut by 15 percent back in April and the firm announced layoffs earlier this month. Though the firm is not back to pre-COVID shape, they did decide to roll back the severity of the salary cuts, going from 15 percent cuts to 7.5 percent.

“After exceeding performance expectations during the first half of this extraordinary year, we’re pleased to begin rolling back salary reductions necessitated during the worst of the pandemic conditions,” BCLP co-chairs Lisa Mayhew and Steve Baumer said in a statement at the time of the recent changes.

Things are looking up in Texas too. In May, Munck Wilson Mandela reduced compensation for partners, associates, exempt directors, and managers, while some partners voluntarily deferred the entirety of their compensation for three months and some staff were furloughed or had their hours reduced. As of July 1, the firm has confirmed that all employees were back to their standard compensation.

Let’s hope more firms are able to roll back COVID-19 austerity measures — and soon.

If your firm or organization is slashing salaries, bringing folks back to pre-COVID salaries, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).

If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.

Kathryn 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).

Generally speaking, we are not overly concerned about privilege diplomas with large law firms and don’t anticipate any policy changes with respect to large law firms.

— Christopher Gomprecht, national practice leader for lawyers’ professional liability at Allianz Global Corporate & Specialty, NA, which provides coverage for more than half of all Am Law 100 firms, commenting on the prospect of new associates practicing without having taken a bar exam. Nancy Montroy, director of underwriting at ALAS, which covers 83 of the 200 largest firms, said her company’s policy doesn’t even take licensing into consideration.

Staci 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.

Joe and Kathryn check in on how the Fall semester of law school is shaping up. With COVID looming over the beginning of the school year, many law schools are going to continue fully remote learning. Several schools have also made it clear that they won’t be offering any discounts on tuition. Is this fair? While there’s a lot of consternation out there, it probably is justified. But don’t think we’re letting law schools off the hook for some of the other bad decisions they’re announcing.