Category: News Feeds

We knew this was going to start happening. Stealth layoffs are a Biglaw specialty and the economic upheaval surrounding COVID-19 is ripe for them. Above the Law is hearing from multiple insiders at the firm that over the last month or so, Goodwin Procter has been letting associates go. They’ve already laid off staff members, and now it seems it’s cutting some associates from its payroll. As a reminder, the firm made over a billion dollars in gross revenue last year — $1,330,176,000 to be precise — making it 22nd on the most recent Am Law 100.

Particularly prevalent during economic downturns, stealth layoffs allow firms to cut headcount without confirming that there were economic-based layoffs. Rather than signal some perceived weakness, a firm tries to cut overhead without making a splash. So, they’ll give the associates X number of months/weeks to find a new job and the firm may even couch the reductions in performance review terms, making those let go doubt their lawyering skills.

Here is what we are hearing is happening at the firm. First it starts in dribbles. (Potentially identifying information of those laid off has been edited from tipster accounts.)

I heard Goodwin is emptying certain practice groups.

Have heard that Goodwin is making stealth associates layoffs.

Hey ATL, Tip regarding stealth layoffs at Goodwin Procter. In early April, Goodwin began laying off associates.

Which, is not enough to base a story on, but it is enough to start poking around. And, the tips just continued to pour in.

Hi, this is a tip on stealth lay offs done by Goodwin Procter. We know of at least 12 associates that were laid off.

I was a Goodwin associate and can confirm that Goodwin has been conducting stealth layoffs.

Just wanted to give a tip that Goodwin recently laid off a handful of associates, but did not provide much detail regarding the layoffs, including how many associates were let go (I’m hearing at least 10-20….). The New York office had a firm-wide call where the firm…. communicated that some associates had been “counseled out” last week due to the anticipated reduction in revenue for the firm. Those let go 12 weeks severance and healthcare benefits through September. For the time being, firm leadership on the call communicated that those who had been let go have been let go, and there are no further plans to let associates go or cut salaries.

Tip: Goodwin is conducting stealth layoffs for economic reasons. They are trying to keep it under wraps by having affected associates sign confidentiality agreements. They should be listed as a firm implementing layoffs.

And then yesterday this account was posted on Reddit:

Before the firm decided to stealth me, I received consistently positive performance evaluations and was given positive informal feedback. My hours were always a healthy margin above the billable hours target and were consistent with that of my colleagues. One day, very suddenly, I was told that I had performance issues and had three months to leave. The conversation made no sense to me, and I spent a lot of time and energy trying to figure out what I had done wrong – thinking I had inadvertently offended someone or made a giant mistake – until a coworker confided in me that the same thing happened to them. Through the grapevine I was able to figure out that this is happening throughout the firm, and it wasn’t just me.

And oof, that is basically a textbook account of stealth layoffs. I have nothing but the deepest sympathy for anyone that finds themselves going through it. And let me reassure you — it isn’t you.

When reached for comment a spokesperson for the firm said:

In early April, we completed our annual mid-year review cycle for our non-partner lawyers (Goodwin operates on a September fiscal year-end.) As a matter of policy, we do not comment on our performance management process.

Which is, again, textbook.

We couldn’t report on the nitty gritty of what is going on in Biglaw firms like Goodwin without the outstanding ATL tipster network. So thank you for helping this come to light.

And remember, if your firm or organization is slashing 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).

---

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.

Here’s a little Fri-YAY fun.

Working in Biglaw can be a stodgy affair; very serious work, you see, and lots of long hours, no time for a laugh. Well, if that’s your impression of those who work in the biggest law firms in the world, you’re in for a treat.

Roll on Friday got their hands on a tribute video from DLA Piper whose employment partner Tim Marshall is stepping down as Joint Global Head of the firm’s employment practice. Set to the tune of “So Long, Farewell” from The Sound Of Music (extra point for the show tune), it features DLA-ers decked out in their best 1920s-inspired garb.

But the very best part is the good humor the firm displayed when Roll on Friday asked them for a comment. A DLA spokesperson said:

“Tim has had a change of role at the firm, and seeing as they couldn’t get together in person to thank him for his eight years as International Group Head, his colleagues thought they would do the next best thing and give him the gift of song”.

“We apologise unreservedly if any [] readers’ eyes or ears were damaged in the viewing of this video, but remain quietly proud of the team’s fortitude, ingenuity and sheer sartorial flair in celebrating with Tim during this lockdown period”.

Nice. Easily my favorite Biglaw statement of all time.

---

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).

Live Webinar:
Date: May 28, 2020
Time: 1 p.m. ET / 10 a.m. PT

Eighty percent of lawyers will get sued for legal malpractice in their careers, and sometimes insurance doesn’t even respond. Owners need to pay attention to other exposures like employment suits, cybersecurity, and other exposures today.

This 60-minute webinar is designed to boil it all down and make insurance a bit less painful and confusing:

• What are the key exposures for law firms?
• How can you avoid getting claims declined?
• What can be done to reduce insurance rates?

Embroker will share transparent information to help you better run your firm. Join Brad Barkin, VP of Law and Accounting of Embroker, and Bob Ambrogi, lawyer and legal journalist, as they discuss the radical way law firms can find the right insurance.

By submitting the form below, you are opting in to receive communication from Above the Law and its partners.

After a scary stretch, Susman Godfrey founder Stephen Susman has awoken from the coma he entered after a late April bike crash.

It’s not clear exactly when Susman got out of the coma and left the hospital, but he’s now in recovery at TIRR Memorial Hermann, the famous physical rehab center.

All of us at Above the Law are happy to hear that Susman is on the mend.

Susman Godfrey Founder Steve Susman Is Out of Coma, In Recovery After Bicycle Accident

Earlier: Susman Godfrey Founder Seriously Injured

---

Joe 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.

Recently, my colleagues and I used Zoom (like everyone) to hold a mock trial. Different lawyers opened, and others acted as witnesses, either as themselves as they would be in the eventual trial, or as our adversaries (who we have somewhat gotten to know, and who we enjoyed pretending to be). We used the Zoom screen-sharing feature to put exhibits in front of the witnesses and all of that.

The trial isn’t scheduled until late 2021.

Given that last fact — that we have forever until trial and, indeed, we are nowhere near done with discovery, let alone know what dispositive motions we will have to deal with, or, of course, whether we will have a real settlement discussion — why would my colleagues and I devote the time and resources now to preparing for trial? It’s simple: because that’s what you need to do to win.

To be clear, when I write “win,” I mean it as we do at our firm: get the best result for the client, whatever that result is. Sometimes that result is getting rid of the fight. Sometimes it’s fighting only for a short while, as that has some collateral benefit to the client (in particular, in commercial litigation). Sometimes it does indeed mean pushing the case to trial or to an evidentiary hearing before an arbitration tribunal and getting a victory at that trial or hearing.

But even if a win for your client doesn’t mean going all the way to trial, you need to be ready to — since it may happen — and by preparing for trial in the early stages of the case, you will do a better job throughout the case, and be more likely to get the client to that win, and get the client there faster. We all think we know our cases. But then when a good lawyer puts on her devil’s advocate cap and examines one of your side’s witnesses you may see, for the first time, some real weaknesses: maybe the witness comes off poorly; maybe you realize you don’t have a good explanation for some conduct; maybe you realize there are things you just don’t know. Like anyone, we can get into a herd mentality about our cases (and, indeed, that’s why at our firm we are huge fans of using mock jurors from the community who really know nothing about the case and aren’t lawyers). By forcing yourself to think like your adversary and go through the motions, even a little, of the end determination of merits, you can make sure you learn.

Some of us, these days, unfortunately aren’t too busy. Many of us, thankfully, are. But challenging your case by mooting it out this way is something we all need to make time to do if we want to win for our clients.

---

John Balestriere is an entrepreneurial trial lawyer who founded his firm after working as a prosecutor and litigator at a small firm. He is a partner at trial and investigations law firm Balestriere Fariello in New York, where he and his colleagues represent domestic and international clients in litigation, arbitration, appeals, and investigations. You can reach him by email at john.g.balestriere@balestrierefariello.com.

After years of diligent silence during oral argument, Justice Clarence Thomas has already piped up twice since the Supreme Court started livestreaming arguments. It’s almost as if the notoriously disengaged jurist has spent the last 29 years waiting for an audience. Perhaps this is why the Court remained so steadfastly opposed for so long.

While hearing argument on Colorado Department of State vs. Baca, the faithless elector case, Thomas jumped in to ask counsel if there could be any check on an elector’s discretion:

“The elector, who had promised to vote for the winning candidate, could suddenly say ‘you know, I’m going to vote for Frodo Baggins. I really like Frodo Baggins,’” said Thomas. “And you’re saying, under your system, you can’t do anything about that.”

As Jason Harrow, the attorney for the faithless elector from 2016, immediately pointed out, this question is remarkably stupid since electors have to vote for real people. Also, if Hawaiian birth certificates couldn’t be trusted, good luck dealing with the bureaucracy of the Shire.

Unfortunately the other side picked up on this strawhobbit argument and cited it later in the argument as proof that electors cannot be legally bound by states lest mischief ensue. It was a disingenuous jab but at least it helps the right side. Efforts to replace the archaic role of the Electoral College with one that simply hands the presidency to the winner of the popular vote hinge on the power of states to keep electors faithful so if it takes freaking out over halflings to get that result, so be it.

But all this raises more interesting questions about Clarence Thomas: Low-Key High-Fantasy Nerd. The references people deploy can reveal a lot about who they are. He could’ve asked about Jay Gatsby or Gregor Samsa or a Republican who opposes de facto segregation — they’re all fictional characters, so why does his mind jump to the hero of the Lord of the Rings trilogy? There are a lot of reasons to appreciate Tolkien, but the fantasy genre does feed a Manichaean worldview, an unhealthy romanticization and whitewashing of the past, and a politics that sees people as defined by birth — dwarves are violent miners because they’re dwarves and not because they live in economically distressed mountain communities. Not that there aren’t other reasons to appreciate the books, but if he’s the sort of superfan ready to drop Frodo in a Supreme Court argument it certainly suggests he’s thought a little more deeply about the books than people probably should and now that it’s been highlighted, it’s hard not to see these strains in his jurisprudence.

Does Justice Thomas see his Supreme Court as an ersatz Fellowship? Perhaps one he envisions as sent on a grand quest to destroy the One Ring, or “voting rights” as we call them? In this model, I assume Roberts holds the Fellowship together as its Gandalf, Alito is believable exuding that Samwise sidekick-y vibe, Kavanaugh doing the Boromir thing and trying to take stuff without consent.

But seriously, is Thomas a big Tolkien guy? Or is this more of a Zeppelin thing where he’s only vaguely following the plot from the lyrics of epic ballads about love and longing and Hobbits? So many questions.

Wait, did Long Dong Silver ever do a Lord of the Rings parody?

SUPREME COURT JUSTICE CLARENCE THOMAS DISCUSSES FRODO BAGGINS DURING ELECTORAL COLLEGE ORAL ARGUMENT [Newsweek]

Earlier: Clarence Thomas Speaks During Supreme Court’s First Ever Remote Oral Arguments

---

Joe 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.

When it comes to thought leaders in the legal industry, they don’t come much bigger than Mark Harris. Twenty years ago, Harris co-founded Axiom, now one of the biggest, oldest, and heaviest-hitting Alternative Legal Service Providers in the world. These days he’s running a spin-off entity called Knowable, which is focused on contract management. Few can claim to have changed an entire industry, but he’s one of them.

So when Mark Harris pens an open letter to the business world, as he did this week, it merits attention. Harris generously shared a draft of the letter that he and Alec Guettel, Knowable’s CFO and Axiom’s co-founder, wrote. He also granted me an interview ahead of publication. It’s a heck of a conversation piece.

While I’d recommend reading the letter in full, its central insight is a practical one: “Large companies are constructed of hundreds of thousands of commercial arrangements in all directions[.]” In the abstract, we all expect COVID-19 to place an immense strain on those arrangements as supply and demand sharply rise and fall, as customers or suppliers go out of business, and as consumers change their basic habits.

What Harris teases out is that our responses to these changes will be dictated and constrained by the contracts our companies have entered into, but most companies have little or no idea at any given moment what’s included in those contracts. While most companies will soon have an urgent need to review and understand their contractual obligations, far too many struggle to even find copies of the relevant agreements once they need them. If the basic contract can be found, pulling together the various addenda, modifications, waivers and such that tend to accrete over a business relationship can be more difficult still.

Harris witnessed the disaster that played out in the 2008 financial crisis. As the stock market tumbled and mortgage-backed securities collapsed, “… the banks were paralyzed. It wasn’t that they themselves were in financial peril, it was that they were contractually committed to all kinds of other institutions and had obligations in this complicated web of commitments and promises and dependencies, and it was completely opaque to them… . It did get sorted out, and the regulators parachuted in for the next six or seven years, and it turns out that having more visibility into their contractual commitments made their businesses a lot better.”

Harris and Knowable are offering a solution to the problem they see coming. As a response to COVID-19, and in anticipation of the difficulties the business world is gearing up to face, Knowable is offering a basic version of its contract management software to all companies free of charge. Harris is up-front that the offer is equal parts altruistic gesture to help struggling businesses and a self-serving effort to onboard new customers. Both in his open letter and in our conversation, Harris was thoughtful about trying to combine compassion with  business-savvy. At the same time this product is being made available free of charge, Knowable has ceased sales calls to potential new customers out of the sense that doing so would be tone-deaf and off-putting. “While we’re sensitive to that, we’re not ashamed of it,” he told me. “What I believe in more than anything is a for-profit company out to do good, out to actually help and solve real problems. It’s understanding that the point of the game is to win, but to win for the right reasons and in the right ways.”

Harris’ anxiety reflects the difficult needle that business leaders are having to thread during this likely generation-defining crisis. The biggest cost of this pandemic is indisputably the human one. Keeping ourselves, our loved ones, and our coworkers healthy while caring for the sick and bereaved is, and should be, our first priority. But while the economic impacts of the crisis may not be the most damaging, they are nonetheless important to mitigate. Doing what we reasonably and safely can to keep people employed and mitigate the economic damage will help prevent second-order suffering down the road. Knowable’s free offer will, Harris hopes, help some businesses better weather the storm, better take care of their employees, and better lift the country back up once we’re through the worst of this.

Like any visionary, Harris sees the upheaval caused by COVID-19 as an opportunity for betterment. “The greatest obstacle most companies have is that they’re fighting inertia,” he told me. “In the short term, it’ll be paralysis and chaos. I think in the medium- to long-term, however, this will open hearts and minds to doing things in a different, smarter, better way… . Freelance working and virtual working are going to be far more accepted” once the world settles into its new normal.

For the founder of one of the legal industry’s biggest Alternative Legal Service Providers, Harris remains surprisingly bullish on the future of law firms themselves. “Law firms take a lot of punishment, particularly in the sort of circles I travel in, but I think the reality is they’re a pretty good business model. They’ve endured pretty well.” Harris also breaks from the convention that firms should continue to consolidate and grow into larger and larger entities. “I think law firms work better as partnerships. I think when partners feel like partners, as opposed to midlevel managers at a multinational corporation, I think they just function better, culturally and from a performance standpoint, from a customer experience standpoint. And I think they control their financial statements in a way that puts them on much better footing and leaves them less vulnerable when the world swings in violently.”

If there’s one thing that resonated for me out of Harris’ open letter and our conversation, it’s a similar theme that has been emerging out of the past few columns I’ve written. COVID-19 is making us realize how what we think of as monolithic businesses and industries are really just a series of connections between people. The contracts that define our conduct are, at heart, a group of people sitting down and agreeing to make each other better off. It’s people deciding to build something together that make up our companies. It’s people that take care of one another in times of crisis.

We are who we surround ourselves with and who we look out for during difficult times.

---

James Goodnow is an attorney, commentator, and Above the Law columnist. He is a graduate of Harvard Law School and is the managing partner of NLJ 250 firm Fennemore Craig. He 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 a tech-based plaintiffs’ practice and business model. You can connect with James on Twitter (@JamesGoodnow) or by emailing him at James@JamesGoodnow.com.

Back in 2017, the U.S. Federal Reserve adjudged Deutsche Bank to be in a “troubled condition.” This may sound like something pretty close to a compliment for a bank undergoing a decade-long existential crisis, but it’s not, because the Fed wasn’t making a general comment on how the Germans were doing, but how they were doing vis-à-vis not laundering money specifically, and “troubled condition” is not a term the central bank throws around lightly.

Since then, the Deutsches have gotten tied up in money-laundering scandals in Malaysia and Estonia, admitted to being a little less-than-attentive as regards the accounts of the president of the United States and his son-in-law, had an unannounced visit from the police, and paid yet another fine. So, uh, how are they doing?