Keep your finger on the legal world's pulse
11th October 2024
 
THE HOT STORY
Law firms boost IP practices amid growing demand for specialized expertise
Law firms are ramping up their IP practices, recognizing opportunities both domestically and abroad. Am Law 200 firms such as Sidley Austin, Orrick, Herrington & Sutcliffe, and Sheppard Mullin have already targeted IP as a growth area, and according to legal recruiters and industry experts, this trend shows no signs of slowing. Dan Binstock, a partner at the recruiting firm Garrison & Sisson, noted that "IP is consistently one of the most sought-after practice areas due to the highly specialized skill set and high-impact nature of the client's business." The demand for first-chair patent litigators is particularly high, with the supply of qualified candidates far below what firms are seeking. Recent hires highlight this growing demand. Covington & Burling brought on two IP heavyweights—Indy Mukerji as a partner and Steve Marshall as of counsel—both of whom were previously partners at Willkie Farr & Gallagher. The firm is positioning itself to handle complex patent litigation cases, a niche that Mukerji says is essential in an increasingly commoditized patent litigation market.
INDUSTRY
ABA updates clerkship programme amid controversy
The American Bar Association (ABA) has revised its Judicial Clerkship Program description following allegations from the conservative Wisconsin Institute for Law & Liberty, which claimed the previous wording implied racial quotas in violation of Title VI of the Civil Rights Act of 1964. Annaliese Fleming, ABA's senior associate executive director and general counsel, stated, “In reviewing the program materials, some language was removed that did not accurately reflect the operation of the program.” The updated description encourages law schools to select a diverse group of students but omits previous commitments for judges to hire minority clerks. The complaint filed with the U.S. Department of Justice and the Department of Education sought an investigation into the ABA and participating law schools, asserting that the ABA's practices could violate federal law. Fleming affirmed the legality of the programme, stating: “The programs at issue are lawful, and we intend to defend them vigorously against any challenges.”
Law schools evolve to meet demands
Law schools are increasingly under pressure to produce practice-ready lawyers, leading to significant curriculum changes. Kellye Testy, executive director of the Association of American Law Schools, stated: “Schools want to add as much value for their students as they can.” Institutions are now focusing on experiential learning, with many introducing clinics and simulations to prepare students for real-world legal practice. For instance, Stanford Law students engage in hands-on cases, while Emory Law has added business-focused classes. The American Bar Association has also pushed for more practical training, requiring six credits of experiential learning. As technology evolves, law schools are adapting their curricula to include legal tech, ensuring graduates are equipped for future challenges. This shift aims to prepare students not just for their first job, but for their entire career.
Lawyers reflect on malpractice moments
The decision to terminate client representation can be challenging for lawyers, particularly when faced with potential legal malpractice claims. Many attorneys, including Shari Klevens and Alanna Clair from Dentons, have experienced moments during client representation when they sensed something was "off." These insights highlight the importance of recognising red flags early in the legal process to mitigate risks associated with malpractice. Understanding when to end a representation is crucial for maintaining professional integrity and protecting one's practice.

 
Law
TECHNOLOGY
From apprenticeships to AI: How legal training is evolving in the digital age
In response to evolving needs, law firms are increasingly shifting from traditional apprenticeship models to online platforms for training new associates. Platforms like HotShot Legal and AltaClaro are helping firms address gaps in legal education by offering hands-on, simulation-based learning, beyond recorded lectures. Law firms like Orrick, Herrington & Sutcliffe, and Husch Blackwell are embracing these innovative tools to teach essential legal skills such as contract drafting and generative artificial intelligence (AI) use. Orrick was one of AltaClaro’s early adopters, citing the platform’s interactive “learn-by-doing” approach as a significant improvement over passive webinars. AltaClaro has grown to serve almost 80 Am Law firms, including K&L Gates, which partnered with AltaClaro to launch courses on supervising the use of generative AI. These new tools are helping firms efficiently train associates, enhance engagement, and attract new talent by adapting to the rapidly changing legal tech landscape.
Law firms must adapt to tech disruption
Robert Otty, chief executive of Orellium Advisory Services, emphasizes the urgent need for law firms to adapt to the rapid evolution of generative artificial intelligence (AI) technologies, warning that traditional models based on billable hours are becoming obsolete. While many firms are investing in AI to cut costs and boost efficiency, they often fail to fully grasp the transformation required. AI is already handling routine legal tasks like document review, research, and drafting, reducing the demand for human expertise and creating a mismatch between the number of firms and the shrinking pool of work. Otty stresses that firms clinging to outdated models risk being outpaced by agile competitors or clients bringing more legal work in-house using AI. Resistance from partners comfortable with the current model adds to the problem. The market is growing more competitive, and firms need to differentiate themselves by offering either high-value expertise or seamless technological integration. Although mergers among law firms are on the rise, Otty warns that many of these mergers are reactive, focusing on scale rather than meaningful transformation. Merging without first addressing outdated structures only compounds inefficiencies, creating a larger entity slow to adapt to technological changes.

 
Law
FIRMS
Boutique firms challenge Big Law pay
Hueston Hennigan has introduced a new associate compensation structure that exceeds the Cravath Scale, marking a significant shift in the legal talent landscape. The firm’s pay scale starts at $225,000 for first-year associates, which is $10,000 above the Cravath benchmark, and eighth-year associates can earn up to $450,000 annually. Managing partner Brian Hennigan stated: “We believe in investing in exceptional talent,” highlighting the firm's commitment to attracting top legal minds. This strategy positions Hueston Hennigan as a premium payer, potentially prompting other firms to reassess their compensation structures amid economic uncertainties. The move has sparked varied reactions within the industry, with some applauding the initiative while others express concerns about potential salary wars among law firms.
CASES
Law firms clash over unpaid fees
Two prominent law firms have initiated separate lawsuits in New York County Supreme Court, claiming a total of $2.4m in unpaid legal fees. ArentFox Schiff alleges that Venbrook Group owes nearly $2.2m for litigation and corporate transactions dating back to 2016. Meanwhile, Baker McKenzie is pursuing $283,201 from Toksoz Grup, a Turkish biotech firm, for services related to a dispute involving a chief executive. As the fourth quarter begins, many law firms intensify efforts to collect outstanding invoices from clients.
Boeing's safety scandal deepens with lawsuits
Late last year, a 4-ton satellite at Boeing's El Segundo plant fell due to improperly secured clamps, as reported by employee Craig Garriott. Although no injuries occurred, Garriott claims the incident could have been fatal. His whistleblower lawsuit, now in federal court, alleges retaliation for raising safety concerns. Attorney Leonard Sansanowicz stated: “The larger issues that we're talking about are public safety, workplace safety and what's being done with taxpayer dollars.” Boeing has denied the allegations but faces scrutiny over its treatment of whistleblowers. The lawsuits come amid ongoing challenges for Boeing, including a strike by its machinists union and past safety controversies. Garriott's spouse, Kathy Moonitz, has also filed a separate lawsuit alleging retaliation linked to her husband's complaints about nepotism. Both continue to work at Boeing, while the stress from the retaliation has reportedly strained their marriage.
SCOTUS rejects appeal in school board protest controversy
The Supreme Court has declined to hear an appeal from parents in Michigan and Virginia who accused Attorney General Merrick Garland of infringing on their free speech rights through a memo addressing threats against school officials. The memo, issued in 2021, aimed to address a "disturbing spike in harassment" but has faced a backlash, with some claiming it labeled protesting parents as "domestic terrorists." The parents argued that the memo was a tactic to intimidate them, forcing a choice between exercising their rights and facing federal scrutiny. However, lower courts dismissed the case, stating the memo did not impose new regulations and was focused on understanding threats of violence. The Biden administration supported the dismissal, noting that the parents had not faced any government action.  
EMPLOYMENT LAW
Federal Judge allows breach of contract case against University of Pennsylvania to proceed
A federal judge has allowed a breach of contract lawsuit against the University of Pennsylvania to move forward, despite claims it was time-barred by the statute of limitations. U.S. District Judge John F. Murphy ruled that factual questions remain regarding the university’s obligations under its patent policy with Susan M. Faust, a former post-doctoral scholar in the gene therapy lab. Faust alleges that Penn violated its patent policy by licensing her inventions without notifying or compensating her, involving entities like Biogen and Regenxbio. The case, Faust v. The Trustees of the University of Pennsylvania, centers around claims that the university failed to fulfill its contractual obligations to notify her about licensing deals and transfer ownership of abandoned patent applications. While the defendants argued that Faust's claims were time-barred, the judge found dismissal premature, citing uncertainty over when the statute of limitations began to run due to the ongoing nature of the contractual relationship. The court did dismiss Faust’s claim under Pennsylvania's Wage Payment and Collection law but allowed her other claims, including tortious interference, to proceed.

 

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