Keep your finger on the legal world's pulse

Contrary to the broader trend of law firms reducing office space in other parts of the U.S., seven out of 10 Am Law 200 firm relocations in New York since early 2023 have been for the same or more space, according to data from commercial real estate firm Cresa. These firms include King & Spalding, Paul, Weiss, Rifkind, Wharton & Garrison, Wilson, Sonsini, Goodrich & Rosati, Susman Godfrey, Kilpatrick Townsend & Stockton, Greenspoon Marder, and Holland & Knight. From the start of 2023 to May 2024, 23 Am Law 200 firms signed leases totaling 2.83m sq ft in New York City. The trend toward securing larger or equivalent spaces reflects a preference for Class A buildings, many of which have undergone significant renovations. Data shows that 50% of relocations were to buildings that had or were receiving $100m or more in upgrades. Examples include Quinn Emanuel's move to 295 Fifth Ave after a $350m renovation, and Paul Weiss and Greenspoon Marder's move to 1345 Avenue of the Americas following a $120m renovation. Despite some moves to areas like Hudson Yards, Midtown Manhattan, particularly Times Square, remains the preferred location, with 81% of Am Law 200 firms situated there. Notably, Covington & Burling's 235,000 sq ft lease at 30 Hudson Yards was the largest signed in June 2024.

 

Law

As Kamala Harris steers towards the Democratic nomination for President, her campaign faces a tight schedule to address numerous tasks, including legal challenges and strategic planning. A significant step in her campaign involves selecting a vice-presidential candidate, a process being overseen by former Attorney General Eric Holder and his firm, Covington & Burling. Among the candidates being considered are several attorneys and current governors such as Josh Shapiro of Pennsylvania, Roy Cooper of North Carolina, Andy Beshear of Kentucky, and Gretchen Whitmer of Michigan. Other potential candidates include Arizona Senator Mark Kelly, Maryland Gov. Wes Moore, and Secretary of Transportation Pete Buttigieg. This array of choices highlights the diverse legal and political expertise available for Harris's potential running mate.

 

Above The Law

Financial institutions are being advised to evaluate and enhance their compliance programs in light of proposed revisions to anti-money laundering and counterterrorism financing (AML/CFT) rules. The Financial Crimes Enforcement Network (FinCEN) has put forward these rules to streamline AML/CFT program rules across various financial institutions. The proposed changes include the introduction of a new statement of purpose, the requirement for an "effective" compliance program, additional components or pillars, a risk assessment process, qualified personnel for pillars, periodic assessments and audits, and the responsibility of U.S. persons. The proposed revisions are driven by the Anti-Money Laundering Act of 2020. Companies are urged to prepare for increased regulatory scrutiny and engage in the regulatory comment process. Comments on the proposal can be submitted until September 3.

 

Bloomberg Tax

Michigan is the most recent state to prohibit the "gay and trans panic" criminal defence, making it illegal to cite "the discovery of a person's actual or perceived gender identity, gender expression, or sexual orientation as justification for the commission of a crime." The American Bar Association has called for legislative action to “curtail the availability and effectiveness” of the defense, saying that “successful gay and trans panic defenses constitute a miscarriage of justice.” The Michigan law bans using a person’s real or perceived sexual identity in a provocation defense, a “heat of passion” defense or a reduced mental capacity defense. Twenty states and the District of Columbia have some form of legislation prohibiting an LGBTQ+ panic defense. There is legislation pending in Pennsylvania, and it has been introduced but failed in several other states. A federal bill was introduced but has not passed.

 

ABA Journal

The California Supreme Court has upheld Proposition 22, allowing gig economy companies including Uber and Lyft to classify drivers as independent contractors. The court rejected claims that the law is unconstitutional, stating that it does not interfere with lawmakers' authority over workers' compensation. The ruling marks the end of a long legal battle and means that delivery and ride-hailing services will continue to operate under the current classification. The decision has significant implications for the over 1m drivers in California and may have ripple effects on drivers in other U.S. states. The law, which passed with 59% of the vote, grants limited benefits to drivers but exempts companies from providing full-fledged employee rights. Labor groups expressed disappointment but highlighted other avenues for workplace protections.

 

Los Angeles Times

Wall Street Journal

A federal appeals court has upheld a landmark law giving temporary workers in New Jersey sweeping new protections and rights. The law, known as the "Temp Worker Bill of Rights," fully took effect on July 1. The law was inspired by an investigation that found some low-paid temp workers being exploited and mistreated by temp agencies. The court's decision is a blow to business groups and staffing agencies that sought to stop the law's implementation. The law requires agencies to provide temp workers with basic information about their work, pay rate, schedule, and sick time. It also eliminates many fees deducted from workers' paychecks and guarantees them at least minimum wage. Supporters say the law is critical for temp workers, many of whom are people of color or first-generation Americans. The New Jersey Business and Industry Association expressed its disappointment with the decision but noted that a separate claim is pending before the district court.

 

NJ.com

A judge has questioned the $185m fee requested by Quinn Emanuel in a long-running fee dispute. The firm claims it devoted a significant amount of hours to the case and believes the high multiplier applied to the fee calculation is reasonable. The insurers, however, argue that the billing descriptions provided by Quinn Emanuel were vague and are asking the judge to reduce the fee award. The Court of Appeals for the Federal Circuit remanded the case last year, directing the judge to consider the lodestar method as a multiplier. Quinn Emanuel has defended the fee, stating that it came up with the idea behind the lawsuit, worked extensively on the case, and achieved a rare 100% return on their clients' claims. The fee represents 5% of the recovery and was communicated to clients when they hired the firm for the case.

 

Bloomberg Law

Clifford Chance, a Magic Circle law firm, has reported impressive financial results, with a 28% increase in U.S. revenue. The firm's U.S. expansion has proven to be successful, as it is not the only Magic Circle firm experiencing financial growth. Litigation and regulatory work have seen a 20% increase, and M&A deals have reached $208bn. The partnership's profit has increased by 10%, with a profit per equity partner of £2.04m ($2.7m). The U.S. market has been particularly lucrative for Clifford Chance, with a 28% revenue jump. Linklaters and Allen & Overy have also seen similar growth. The firm's litigation and dispute resolution teams have experienced a 20% increase, and they have been involved in 224 M&A deals. Clifford Chance's success extends to areas such as tax, pensions, and real estate. The firm has also expanded in the U.S., hiring 19 new partners.

 

LawFuel

Melanie van Leeuwen, a partner at Parisian arbitration boutique Derains & Gharavi, has been reappointed as chair of the International Chamber of Commerce (ICC) Commission on Arbitration and ADR. Her reappointment comes with twelve new vice-chairs to work with her on the Commission's steering committee, as part of a move by the ICC to ensure a more balanced representation of established and emerging jurisdictions and promote regional diversity, a key priority for the Court of Arbitration’s president, Claudia Salomon, who was also recently reappointed to her role. "Many of the newly appointed vice-chairs, all leading professionals from various regions, were women," said Melanie van Leeuwen. The ICC has seen a significant increase in representation from in-house counsel and corporate representatives, with current membership comprising more than 1,400 members from over 100 countries.

 

The Global Legal Post

China has revealed details of a revised state secrets law that bans government officials entrusted with state secrets from going abroad without approval. The law, which takes effect from September, focuses on data security and aims to protect national interests. The revised law gives police broader powers to investigate breaches and requires private companies to protect state secrets. The regulations also require pre-employment background checks and regular confidentiality training for government officials handling state secrets. Criminal offences include failing to report leaks in time or skipping data security procedures. An update to a separate anti-espionage law, as well as laws curbing cross-border transfers of data, have posed challenges for foreign firms operating in China, especially in the due diligence sector. Chinese police raided several foreign management consultancies last year and detained a Japanese pharmaceutical executive on spying charges.

 

Reuters