Keep your finger on the legal world's pulse

As competition intensifies within the legal sector, major law firms like Weil Gotshal & Manges and DLA Piper are innovating their compensation structures to attract and retain high-performing lateral partners. Traditionally, firms have offered fixed cash guarantees or shares in the firm, but recent trends indicate a shift towards more flexible and mixed compensation models. This change allows firms to adapt to the unique contributions and needs of new hires while managing their financial risk. Weil Gotshal & Manges has recently transitioned to offering shares instead of purely cash-based compensation, aligning new partners more closely with the firm's long-term success. DLA Piper’s global co-chair, Frank Ryan, emphasizes the need for flexibility to leverage the unique skills of individuals within the legal profession. Recruiters and analysts observe that while some firms are increasing their use of cash guarantees, others are favoring shares or a combination of both. This strategy not only helps in managing financial outcomes better but also integrates laterals more deeply into the firm’s culture and success metrics. The approach aims to balance immediate incentives with long-term commitment, reflecting a broader trend of strategic adaptation among top law firms.

 

The American Lawyer

During a virtual roundtable hosted by Ironclad, titled "State of AI in Legal," Harvard Law Professor David Wilkins and other legal experts discussed the profound changes AI is bringing to the legal profession. Professor Wilkins recalled a significant moment from the early 2000s when a visiting MIT professor emphasized that technology redefines professional roles rather than merely enhancing existing practices. Today, this perspective resonates deeply as generative AI reshapes how lawyers work, from drafting documents to redlining contracts. Kate Orr, global head of practice innovation at Orrick, Herrington & Sutcliffe, highlighted the growing importance of creativity in the legal field, a trait not traditionally associated with lawyers. The discussion also touched on the evolving training and apprenticeship models for lawyers, challenging the conventional pathways that have dominated legal education. The roundtable revealed that a significant majority of legal professionals trust AI to some degree, with many already integrating it into their daily tasks. The conversation also ventured into potential future applications of AI in legal judgments, as noted by Renny Hwang from OpenAI, who mentioned an instance where an appeals court judge used AI to define legal terms.

 

Corporate Counsel

Kirkland & Ellis, the world's most profitable law firm, is extending its $50,000 referral bonuses for junior lawyers until January 2025. The firm initially raised the bonuses from $25,000 to $50,000 due to increased demand in litigation, but now it is responding to the need for both litigation and corporate talent. The referral bonuses serve as incentives for associates to tap into their networks and indicate a positive sign for the lateral associate hiring market. Kirkland's move comes as global M&A transactional volume has increased by 13% to over $1 trillion in the first half of 2024. While demand may not reach pre-pandemic levels, the retention bonuses offered by Kirkland demonstrate the tools firms can use to attract and retain talent as hiring needs increase. "This suggests that corporate transactional work is increasing, which is a welcomed sign that the tides may be turning," said legal recruiter Summer Eberhard.

 

Bloomberg Tax

Law firms in California are increasingly relocating from downtown areas to more flexible and premium locations. This trend, detailed in a report by JLL, reflects a decline in demand for traditional downtown office spaces, with notable shifts in Los Angeles and San Francisco. In Los Angeles, where 86 Am Law 100 firms occupy 4.5m sq ft, there’s been a 20% drop in commercial leasing activity. Similarly, San Francisco's office vacancy reached a record high of 32.4%. Despite these downturns, the overall U.S. market for law firm leasing remained strong, with 9m sq ft leased in 2023 across JLL's nine surveyed markets. Firms like Thompson Hine and Hanson Bridgett are either expanding or setting up new offices, driven by corporate finance demands in regions like Southern California. The migration from downtown areas to places like Century City in LA represents a "flight to quality," with firms opting for newer or renovated buildings to attract talent and host clientele efficiently. This strategic relocation is seen as essential for firms looking to maintain competitive edges in recruitment and client services amidst evolving market conditions.

 

The Recorder

J.D. Vance, running as former President Donald Trump's VP candidate, has publicly supported Federal Trade Commission Chair Lina Khan's robust stance on antitrust enforcement. As a member of a faction of Republican lawmakers known as "Khanservatives," Vance advocates for a broader interpretation of antitrust laws, focusing not only on consumer prices but also on promoting competition and regulating Big Tech's market power. This endorsement indicates potential policy directions regarding antitrust enforcement in a possible second Trump administration, highlighting internal debates within the conservative movement about the scope and aims of regulatory bodies like the FTC. Vance's backing of Khan's policies underscores a commitment to using antitrust laws as a tool against corporate dominance, aligning with his previous calls to dismantle major tech companies like Google. This stance reflects a broader concern about the impacts of corporate consolidation on workers and consumers alike. 

 

U.S. News

Jenner & Block chair Thomas Perrelli and DLA Piper associate Christopher Oprison have been appointed special masters to assist in the resolution of the vast case emanating from exposure to hazardous water at Camp Lejeune in North Carolina. The appointments come in a case that the government has estimated could cost around $21bn to resolve. Court fights over the process have bogged down the settlement process, with judges expressing frustration over the slow pace of resolutions. Lawyers for the government and plaintiffs in the Camp Lejeune cases had recommended Perrelli for the mediator-like role as early as January. The court identified Oprison as a candidate. The government and plaintiffs will split the costs of the settlement masters, who will provide billing records of their work. Magistrate Judge James E. Gates will be the “settlement liaison” working with Perrelli and Oprison. Perrelli has previously won monitorship appointments for three companies. Oprison, a litigation partner, is a former Marine Corps captain who has represented active duty, reservist and retired veterans in pro bono cases. The appointments will last one year but the court can extend them if necessary.

 

Bloomberg Law

The second phase of the civil trial against the National Rifle Association (NRA) and its top executives has begun in Manhattan, New York. New York Attorney General Letitia James is seeking an independent monitor to oversee the powerful gun rights group. James is also aiming to ban Wayne LaPierre, the former CEO of the NRA, from holding leadership positions or collecting funds for charitable organizations in New York. In the first phase of the trial, LaPierre was found to have misspent millions of dollars of NRA money on a lavish lifestyle. The NRA is opposing the request for a court-appointed monitor, claiming it is unwarranted. The trial, which is a bench trial without a jury, is expected to last about two weeks. Witnesses, including former NRA president Charles Cotton, will testify. The trial has shed light on the leadership, culture, and finances of the NRA, which has been a major political force in the U.S. for over 150 years.

 

U.S. News

The New York attorney general and the New York Civil Liberties Union have filed lawsuits against Nassau County over its ban on transgender females participating in women's sports teams at county facilities. The ban, signed into law by Nassau County Executive Bruce Blakeman, has been blocked by a judge in the past. Both lawsuits argue that the ban violates state anti-discrimination laws. Attorney General Letitia James stated that the county is attempting to exclude transgender girls and women from sports while claiming to support fairness. The New York Civil Liberties Union's lawsuit was filed on behalf of the Long Island Roller Rebels, a women's roller derby league. The ban would apply to about 100 sporting facilities in the county.

 

U.S. News

Ceremony of Roses, a merchandising company, has filed a lawsuit against Live Nation, alleging negligence related to the deadly crowd surge at the 2021 Astroworld Festival. The suit, lodged by Eisner Law in the Los Angeles County Superior Court, claims substantial financial harm due to Live Nation's failure to implement adequate security measures, despite prior warnings from similar events. This legal action follows the settlement of nine of ten wrongful-death lawsuits involving Live Nation and rapper Travis Scott, linked to the festival where ten concertgoers died and thousands were injured. Ceremony of Roses, which managed carnival attractions at the festival, is seeking punitive and monetary damages, including $700,000 in unrecovered investment.

 

The Recorder

Russian cybersecurity firm Kaspersky Labs will leave the United States following a sales ban imposed by the U.S. government. The ban, announced by U.S. Commerce Secretary Gina Raimondo, cites security risks posed by Russia's influence on the firm. Kaspersky Labs will gradually wind down its U.S. operations and lay off employees starting July 20. The company's U.S. website has already stopped allowing purchases by U.S. customers. The new restrictions on inbound sales of Kaspersky software will come into effect on September 29, blocking downloads of software updates, resales, and licensing.

 

U.S. News