Yelp Review Leads to N.J. Lawyer’s Suspension Where Client Info was not “Generally Known”

“Just because information relating to your representation of a client might be publicly available, your duty of confidentiality means that you can’t disclose it if it is not ‘generally known.’ The two concepts — public availability and being ‘generally known’ — are not the same, as a New Jersey lawyer learned earlier this month when the state supreme court imposed a one-year suspension in a disciplinary case that (among other things) involved a Yelp review,” reports Karen Rubin in Thompson Hine’s in The Law for Lawyers Today Confidentiality.

“According to the disciplinary board’s decision, the lawyer represented a client in a child custody matter and achieved a ‘seemingly good result’ via settlement. Over a year later, however, the client posted ‘poor reviews’of the lawyer’s services on several websites. In turn, as set out in the board decision, the lawyer posted a review of the client’s massage business on Yelp, where he said that the client ‘is a convicted felon for fleeing the state with children. A wonderful parent. Additionally, she has been convicted of shoplifting from a supermarket. Hide your wallets well during a massage. Ooops, almost forgot about the DWI conviction. Well maybe a couple of beers during a massage would be nice.'”

“After the client complained, the lawyer sought to explain his actions, according to the board decision. He admitted he was ‘very upset’ by the client’s negative Yelp rating of his practice, and felt that his response was justified because ‘what was good for the goose was good for the gander.'”

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Biglaw Firm Late on Rent — to the Tune of $3.7 Million — According to Landlord

“A Biglaw firm finds itself the defendant in a lawsuit over an issue a lot of folks feel right now — late rent,” reports Kathryn Rubino in Above the Law’s Biglaw.

“According to the lawsuit, filed in Illinois, the Biglaw firm of Jenner & Block is behind on its rent for the firm’s Chicago office. Landlord Hart 353 North Clark LLC, affiliate of global real estate investment management firm Heitman LLC, said in a lawsuit filed May 20th in Cook County Circuit Court the firm owes $3,726,415.74, plus late fees and interest, for its 416,000+ square feet of office space.”

“But not so fast, the firm contends their lease provides an out. Randy Mehrberg, co-managing partner, that the firm’s partners are availing themselves of a provision in their lease agreement that provides rent abatement if the space cannot be used as intended. And he assures everyone this rent dispute is not a harbinger of financial troubles for the firm.”

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Lawyers Who Asked for Fees 40x the Settlement they Negotiated Dealt $280K Blow

“Plaintiffs lawyers shouldn’t have been awarded $280,000 for negotiating a $15,000 settlement, a Los Angeles appeals court has ruled,” reports John O’Brien in Legal Newsline Stories.

“The California Court of Appeal, Second Appellate District issued its ruling on May 21 in a blow to lawyers who claimed to spend more than 800 hours on the lawsuit and initially requested close to $600,000 in fees and expenses.”

“The decision comes in a former server’s lawsuit against Fleming’s Steakhouse & Wine Bar’s. She alleged she was deprived her 10-minute breaks, but her lawyers claimed the settlement included wage and hour claims that entitled them to recover fees.”

“Afterwards, attorneys at Felahy Employment Lawyers and Yash Law Group sought $580,794 in fees and more than $16,000 in costs, claiming they spent 869.6 hours were incurred. They said the wage and hour claims were ‘closely intertwined’ with retaliation and wrongful termination claims.”

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Why This Lawyer Increased His Fees During the COVID-19 Pandemic

Lawyer, Robert Theofanis launched his estate planning practice in mid-2019. His “plan was to start off with below-average fees and by the end of the first year increase them to the high end of the market,” discusses Theofanis in ABA Journal’s Your Voice.

After working his way through those clients, he started charging his published fees, which were about average for the area.

He was hitting his stride at the start of 2020 and felt it was time to increase his fees. “At the time, I was in the middle of a marketing program and decided to hold off on increasing fees until after I updated my website with new marketing content.”

“Then the COVID-19 pandemic hit.”

In the end, he decided to raise his fees for two reasons.

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Law Firm Fires Employee After ‘Threatening’ Post About his Gun, COVID-19 Mask Requirements

“A Dallas law firm fired an employee after he wrote in a Facebook post that lambasted businesses that require customers to wear masks during the COVID-19 pandemic and made references to firearms and ammunition,” report Dana Branham in The Dallas Morning News’ Public Health.

“The law firm, Thompson & Knight, called the post ‘threatening and offensive’ in a statement.”

“The firm’s chief marketing officer, Kelby Luther, confirmed Monday that the terminated employee is Kevin Bain, who had worked as a document services manager based in Dallas.”

“Luther said the firm’s statement refers to a widely shared Facebook post in which Bain referred to the Whole Foods grocery store on Lomo Alto Drive in Highland Park, saying that any business that insists he wear a mask ‘will get told to kiss my Corona ass and will lose my business forever.'”

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The Bigger the Better? Understanding the Biglaw Salary Scale

“Biglaw is an industry-specific nickname for high-revenue law firms with large headcounts. It can also refer to smaller firms that pay their lawyers a market rate salary, or even a medium-sized outfit with wide, international reach and notoriety,” writes Joshua Holt in Law Fuel’s blog.

“All of these types of firms are typically headquartered in major US cities, like Los Angeles, New York, and Chicago, with multiple branches in smaller markets. And, most notably, lawyers who work in Biglaw can expect to be paid based on the Cravath scale.”

“The Cravath Scale, an offshoot of the Cravath system, is named after Cravath, Swaine & Moore LLP, the firm which is generally considered the authority on setting associate salaries. Its compensatory functions include factors like the number of years out of law school and particular law school classes, among others.”

“Lawyers on this pay scale not only earn the same salary but can also anticipate receiving the same annual market bonus. Based on the lockstep and closely monitored structure of the scale, if one firm offers an associate a higher salary, other firms tend to follow suit. But while this scale is based on a platform of consistency, changes have been experienced throughout the years.”

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Considerations When Reducing Executive Salaries

“In the wake of the market disruption caused by the COVID-19 outbreak, a number of employers have announced temporary salary reductions as a means of conserving cash, and thus demonstrating sound stewardship. This memorandum discusses key considerations for companies and boards that are contemplating a salary reduction program for members of executive management,” discuss John J. Cannon III, Doreen E. Lilienfeld, Gillian Emmett Moldowan, Matthew Behrens and Max Bradley in Shearman & Sterling’s Perspectives.

“Companies considering implementing a base salary reduction for executives should begin with a careful review of their existing contractual requirements to determine whether the reduction could trigger the right of an executive to terminate employment for ‘good reason.’ ‘Good reason’ (or constructive termination) rights may arise under employment agreements or in severance plans. ‘Good reason’ triggers may also engender consequences under equity or incentive compensation arrangements and deferred compensation plans.”

“Each arrangement that includes a ‘good reason’ construct should be analyzed to determine whether the contemplated reduction in base salary could trigger an argument of constructive termination. The company ought to consider whether the salary reduction is significant enough to cause a trigger if the ‘good reason’ definition is qualified by materiality and if ‘good reason’ is triggered when the salary reduction is part of an across-the-board program that reduces salaries for the entire company or similarly situated employees. If it is determined that the salary reduction could trigger ‘good reason,’ employers should seek consent and waivers from the executives before proceeding.”

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Judge Rakoff Ends Litigation Fantasy

“There is nothing much better for a litigator/baseball fan than when these two interests collide.  One of the highpoints of my legal career was successfully representing a major league baseball player (Pat Kelly) in his salary arbitration with the Yankees.  So I was pretty excited when the case Olson, et al. v. Major League Baseball, et al. was filed this year in the SDNY.  Maybe not as excited as if I would have been if I were involved in the case myself, but in these times we have to take what we can get,” discusses Edward H. Rosenthal in Frankfurt Kurnit Klein + Selz‘ blog.

“Olson was a putative class action brought by individuals who participated in DraftKings fantasy baseball competitions. The plaintiffs sued Major League Baseball (“MLB”), MLB’s marketing entity called Major League Baseball Advanced Media, L.P. (“MLBAM”), the Houston Astros and the Boston Red Sox alleging that plaintiffs’ fantasy baseball efforts had been harmed by virtue of the electronic sign-stealing scandal that has been revealed over the past few months. In a nutshell, the Astros were found to have devised a system using cameras to relay the signs the opposing team’s catcher was giving to its pitcher by sending the signs to a player or coach situated behind the Astros dugout.  The recipient of the video would then convey the pitch information to the batter by banging on a trash can.   It is undoubtedly true that a batter’s knowledge of the pitch about to be thrown enhances his chances of a successful time at the plate.  While sign-stealing is not in and of itself illegal (it’s a time honored tradition for baserunners to try to figure out the sign being given by the catcher and then convey that information to the batter), the rules of baseball specifically prohibit electronic sign stealing.”

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Practice Areas Most Impacted By COVID-19

“As mentioned in previous articles, the ongoing COVID-19 pandemic has substantially impacted the legal profession. Economic issues have affected the need for legal services, which has forced law firms to reduce headcount, lower salaries, and take other efforts to weather the storm. However, based on my own experience, some practice areas seem to be expanding in the current environment, and other practice areas are struggling because of COVID-19,” writes Jordan Rothman in Above the Law’s Biglaw.

“If attorneys have a good sense of the practice areas that are expanding and contracting in the current environment, they can best weather the storm of COVID-19.”

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Baker Donelson Temporarily Cuts Pay, Furloughs Some Employees Because of COVID-19

“Baker Donelson is imposing temporary pay cuts, reducing partner draws, and furloughing some employees because of the financial impact of the COVID-19 epidemic,” reports Debra Cassens Weiss in ABA Journal’s Latest News.

“Baker Donelson confirmed the measures in this statement provided to the ABA Journal: ‘We have undertaken a number of measures to ensure the financial stability of the firm moving forward, which includes shareholder reduction in draws and salary that have already been implemented,’ the statement said. ‘This will be followed over the next few weeks by temporary salary reductions across the firm and with a furloughing of some employees. … Our hope is that, once this crisis subsides, we will eventually be able to bring the furloughed team members back to Baker Donelson. Until then, we are providing them with support to help minimize the impact of what we know is an extremely trying situation, particularly in these highly uncertain times.'”

Read the article to find what other law firms are following suit by taking temporary measures in response to work slowdowns.

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Top Lawyers’ Pay Cut as Coronavirus Brings C-Suite Austerity

“Top in-house lawyers are getting their compensation cut along with other executive officers as the new coronavirus causes widespread economic distress,” reports Brian Baxter in Bloomberg Law’s Corporate Governance.

“Marriott International Inc., the Cheesecake Factory Inc., and other companies have announced plans to cut pay for top executives. Bloomberg Law recently reported that gaming company Accel Entertainment Inc.’s leadership is going even further, foregoing 100% of their pay until it hopes normal business operations resume next month.”

“Veta Richardson, president and CEO of the Association of Corporation Counsel, said that she can’t recall another time when executive pay cuts have become so extensive.”

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Keep Learning While Your Case Is in Limbo: Seven Ways to Use the Pause

“One after another, like dominos, court systems are shutting down or moving to drastic restrictions. In the process, court dates are being pulled and cases are moving into limbo. As that happens to your own once trial-bound cases, you think, ‘What now?’ What do you do with the time that you now unexpectedly have as your case is put on pause?” asks Dr. Ken Broda-Bahm in Persuasive Litigator.

“Clients will often issue a ‘Stop work’ notice, thinking, ‘Let’s put a pin in it, package everything so it’s fresh, then revisit the situation down the road, closer to the new date.’ Limiting the expenses is, of course, a worthwhile goal, particularly now that the economy is moving into limbo as well. But sometimes, the decision to call an abrupt and complete halt can be more penny-wise than actually wise. When a pause is created, not just by the current Coronavirus measures, but by any delay or uncertainty over a court date, that pause can be an opportunity.”

In this post, Dr. Broda-Bahm shares seven ideas on how to make the best use of an unexpected delay.

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The Biglaw Firm Cracking An Impressive $4 Billion In Revenue

“While not every firm has yet reported their financials, we do know what Kirkland & Ellis — the reigning top revenue pile in Biglaw — did in 2019,” reports in Above the Law’s BigLaw.

“In 2019, Kirkland saw their revenue rise by an impressive 10.6 percent, bringing them to a crazy $4.154 billion in revenue. And profits per equity partner were also up — 3.13 percent to $5.195 million.”

“The firm is also busy getting bigger.  In 2019, Kirkland’s headcount went up 12.6 percent, with the London office leading the way with a 3.3 percent headcount increase, bring that office to ~307 lawyers. However, all the headcount growth does have a downside, with revenue per lawyer dipping 1.8 percent to $1.59 million.”

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Am Law 50 Firm Demands Massive Tax Breaks, Sues Government For Not Handing Them Over

“The Am Law 50 firm moved its headquarters to Philadelphia’s Cira Centre in 2005, taking advantage of a tax break program that Pennsylvania offers businesses to move into developments in formerly run-down areas. Since taking up residence in Cira Centre, Dechert’s paid virtually no state or local business taxes in exchange for Dechert’s role in making the area an attractive business destination,” notes Joe Patrice in Above the Law’s Biglaw.

“But the program expired in 2018, so when the Keystone Opportunity Zone program eyed a new tax-free area in Schuylkill Yards, Dechert walked up and asked to move there too.”

“There’s nothing in the law to say companies can’t hop from zone to zone to remain permanently tax-free, and when authorities denied Dechert’s request to continue not paying its taxes, the firm took the government to court.”

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Inside The Twin Cities’ Big Law Firm Mergers

It was November 2014 when attorney Steve Ryan gave a presentation to his shareholders about a possible merger for Briggs & Morgan law firm, arguing that they “needed to take a hard look at what the strategic path forward for our firm was going to be,” reports Liz Fedor in MinnPost’s Twin Cities Business.

“It took Briggs five years to consider its future, choose a merger option, and find Taft, a Midwestern law firm that, like Briggs, was founded in the 1880s. On Jan. 1, 2020, the firms merged, and Ryan is now partner-in-charge of the Minneapolis office of Taft.”

“As of early 2020, Briggs was among three of the 10 largest law offices in downtown Minneapolis that executed mergers. Gray Plant Mooty, the oldest continuous law firm in Minneapolis, dating back to 1866, combined with a firm whose biggest market is Kansas City. The new firm is called Lathrop GPM.”

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Vacancies Prompt County to Hire Private Law Firm to Assist With Cases

“Cascade County has hired a private law firm to assist the Cascade County Attorney’s Office, which is experiencing a significant number of attorney vacancies with two major civil cases pending,” reports Kari Puckett in Great Falls Tribune.

“At a special meeting Friday, commissioners approved a legal service agreement with Ugrin, Alexander and Zadick in which attorneys for the firm will serve as independent contractors to provide legal representation to the county.”

“Costs for the initial six-month term is $7,500 a month for a total of $45,000.”

There are three vacancies in the office.

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Quinn Emanuel Shuts Down New York Office After Partner Tests Positive For Coronavirus

“A partner at Quinn Emanuel Urquhart & Sullivan in New York has tested positive for the coronavirus, prompting the firm to close the office as a precaution this week,” reports Amanda Robert in ABA Journal’s Daily News.

“The firm did not name the attorney, but according to Law.com, he is the first known BigLaw partner to contract the coronavirus in the United States. An attorney at Lewis and Garbuz, a Manhattan trusts and estates law firm, also tested positive for the illness last week.”

“John Quinn, founding partner of the 800-plus attorney firm, also told Law.com on Sunday that the partner belongs to a religious community in Westchester County, where other infections have been reported. He has been resting at home since March 2.”

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How Showcasing Softer Content and Your Firm’s Culture Can Enhance Your Social Media Efforts

“Using social media to support your firm’s and lawyers’ business development efforts should be at forefront of everything you do on LinkedIn, Twitter, Facebook, etc. If the post doesn’t support your firm’s strategic goals, take a time out to think about why you are even doing this and rethink your strategy,” writes Stefanie Marrone in The Social Media Butterfly’s Insights.

“Don’t use your social channels to only focus on your firm’s work and its substantive news, events and publications – that can make your firm seem dry, a little boastful and devoid of personality and heart.”

“Firms should also showcase their “softer” side, which can support their business development efforts, because clients want to peek behind the curtains on the firms on which they rely.”

“Showcasing the softer side of your law firm humanizes your firm and makes your lawyers more relatable. Include posts about firm life, pro bono and community service, upcoming holidays, as well as profiles on lawyers and alumni, and photos from firm events.”

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Threat From Within: Inside Counsel’s Role In Defending Against Data Breaches

“While organizations make significant investments in protecting their data from outside infiltration, they can often overlook the serious threats that exist within their own workforce. According to a 2020 study released by the Ponemon Institute, the biggest threat in terms of disclosure of sensitive information comes from so-called “insider threats,” in the form of employees who disclose protected information or provide a means of access to that information to third parties, either unwittingly or otherwise. That threat has only grown in recent years, increasing by 47% in the last two years alone,” reports Risa B. Boerner in Fisher Phillips Newsletters.

She further breaks down her article into the following sections:

  • The Costs Can Be Staggering
  • Why The Recent Surge?
  • First Steps: Awareness + Training
  • Advanced Tactics

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Inside Counsel Beware: Your Job Description Now Includes Antitrust Compliance

“There has been a veritable explosion of antitrust litigation in the workplace law field, putting employers and their executives at risk. Federal and state antitrust agencies and private plaintiffs have accelerated their attacks on employers who agree to coordinate wage levels (wage-fixing) or not solicit each other’s employees (no-poach),” writes Dennis Cuneo in Fisher Phillips’ Resources.

“Four years ago, the Department of Justice threatened criminal prosecution of companies and individuals who engaged in such activities. A few weeks ago, the nation’s top antitrust law enforcement official reiterated that threat, announcing that he plans to bring a criminal prosecution this year challenging a no-poach agreement. Attorneys General in several states have stepped up their challenges to no-poach agreements, particularly in franchise settings. Private plaintiffs have obtained huge settlements in class action lawsuits challenging no-poach agreements and exchanges of compensation data among employers.”

“The antitrust prohibitions against price fixing or market allocation in product markets are well understood. What is not as well understood is that the antitrust laws apply equally to labor markets. Just as a price fixing agreement between two companies to fix the price of widgets may lead to antitrust sanctions, a wage-fixing or no-poach agreement between two companies that compete for the same labor may also lead to antitrust sanctions.”

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