Law firms consider increasing capital contributions by equity partners

Law firms consider increasing capital contributions by equity partners


Law Firms

Law firms consider increasing capital contributions by equity partners

Some law firms are considering increasing capital contribution levels, according to a report by Law.com. (Image from Shutterstock)

Some law firms are considering increasing capital contribution levels, according to a report by Law.com.

Jon Lindsey, a New York founding partner at recruiting firm Major, Lindsey & Africa, thinks some firms are considering increases amid economic uncertainty.

“I think firms want to make sure they can meet that uncertainty with all the tools they have,” he told Law.com.

The article cited 2023 figures from Wells Fargo’s Legal Specialty Group. The average capital requirement in the nation’s 100 top-grossing firms was 23% of compensation that year. For the Second Hundred top-grossing firms, the average was about 19.5%. But the percentages vary widely, with amounts of contributions ranging from 0% to 49%.

The averages haven’t changed much over the last five years or so, according to Owen Burman, a senior consultant for Wells Fargo’s Legal Specialty Group, who spoke with Law.com in an interview.

The article listed these reasons why firms may want to increase capital contributions:

  • To invest in artificial intelligence technologies, cybersecurity systems and other technology

  • To finance expansion into new cities

  • To make up lost funds when firms decrease equity partners

  • To make partners feel invested in the firm, possibly discouraging them from leaving





Source link

BigLaw firm lays off 5% of business professional staff

BigLaw firm lays off 5% of business professional staff


Layoffs

BigLaw firm lays off 5% of business professional staff

Perkins Coie has laid off 5% of its business professional staff following a firmwide review that took place over the last year. (Image from Shutterstock)

Perkins Coie has laid off 5% of its business professional staff following a firmwide review that took place over the last year.

The law firm confirmed the layoffs in a statement, report Law.com, Above the Law and Law360.

The firm said the layoffs “reflect the firm’s long-term strategic goals and incorporate best practices from across the industry.” The decision “was informed by a firmwide review over the last year and aligns with our commitment to client service and operational excellence,” the statement said.

Perkins Coie was one of the firms targeted by President Donald Trump in an executive order that sought to suspend security clearances had by firm personnel and to end clients’ government contracts for which the firm performed work.

Perkins Coie sued, and a federal judge enjoined the punitive order in May.





Source link

Nonlawyers can partly own law firms in Puerto Rico under revised ethics rules

Nonlawyers can partly own law firms in Puerto Rico under revised ethics rules


Ethics

Nonlawyers can partly own law firms in Puerto Rico under revised ethics rules

Puerto Rico has enacted new lawyer ethics rules that allow nonlawyers to have an ownership interest in law firms. (Image from Shutterstock)

Puerto Rico has enacted new lawyer ethics rules that allow nonlawyers to have an ownership interest in law firms, a departure from Model Rule 5.4 of the ABA Model Rules of Professional Conduct on professional independence.

Although Puerto Rico’s new ethics rules are modeled on the ABA Model Rules, the provision allowing nonlawyer ownership of firms is a key change, the LawSites blog reports.

Nonlawyers would not be allowed to own more than 49% of the shares in the law offices, according to a ChatGPT translation of the rule published by LawSites.

The rule also states that law offices partly owned by nonlawyers must be operated by lawyers licensed in Puerto Rico. The nonlawyers cannot interfere with lawyers’ independent professional judgment and cannot provide services to the law offices.

The Puerto Rico Supreme Court, which adopted the ethics rule, plans to assess its effectiveness after three years.

The only other jurisdictions that allow nonlawyer ownership of firms are Arizona and the District of Columbia, LawSites reports. Utah also allows nonlawyer ownership but only under the restrictions of its regulatory sandbox program.

See also:

Following decades of discourse on nonlawyer legal services, questions of motives continue

How ethics reforms in Arizona led to LegalZoom’s law firm





Source link

New Amazon Prime documentary explores high school ‘WebcamGate’

New Amazon Prime documentary explores high school ‘WebcamGate’


As a parent watching Amazon Prime’s Spy High, it’s scary to hear students talk about their school-issued computers’ webcams turning on by themselves.

The documentary explores what happened in 2009 at a suburban Philadelphia high school, including a school accusation that then-student Blake Robbins sold drugs. This accusation was based on a photo taken by his school-issued computer in his bedroom, without his or his parents’ consent.

The laptop in question contained tracking software that was supposed to activate its camera when the computer was reported lost or stolen. But Robbins’ laptop was never reported lost or stolen, and the device captured approximately 400 other images of him. Robbins’ 2010 federal lawsuit catalyzed the documentary’s production.

Some other family’s problem

In the series, students talk about the “first time the green light came on by itself,” in reference to the light illuminating on the school-issued computers when the webcam is active. Some of the then-minors describe thinking it must have simply been a malfunction, brushing it aside.

But as Robbins’ lawsuit gained steam, it garnered national attention and the situation became commonly referred to as “WebcamGate.” There were multiple media interviews with the family’s attorney, Mark Haltzman, and with Blake and his family. According to Haltzman, going to the media was not the plan initially, but “it became necessary because of the spin that the school district wanted to put on” the lawsuit.

What was that spin? The Robbins family was a group of money-hungry individuals with huge personal debts looking to maximize their 15 minutes of fame. It didn’t help that they also had a history of litigation in other circumstances. As the narrative surrounding the lawsuit began to switch, the Robbinses were no longer viewed as heroes willing to stand up to the powers that be; instead, they were being cast as pariahs by the community.

As the public profile grew, Haltzman did what he could to get as many class members for the lawsuit as possible, even going so far as to ask to speak with other students’ parents at a meeting organized to discuss the merits of the litigation. His request was denied, and while one other student, Jalil Hasan, filed a parallel suit and was also represented by Haltzman, it appears no other students joined Robbins’ action.

After all, as one parent put it, the lawsuit effectively asked the parents to sue themselves: they were the taxpayers who would foot the damage. That sentiment, coupled with the notion that the school had invaded only Blake Robbins’ privacy, left the family feeling alone.

Opinions began to change yet again once an investigation revealed the situation wasn’t limited to the 400 images of Blake Robbins. The school district captured approximately 56,000 images of various high school students without their consent. Of the 2,306 issued laptops, 36 captured images of students in their homes without their permission.

But hey, it’s not your problem until it’s your kid, right?

School surveillance

As I mentioned, Spy High discusses only one other student filing suit against the school district initially (Robbins’ sister filed and dismissed more than a year after her brother and Hasan had settled). Perhaps other families didn’t feel betrayed to the same level. Maybe they simply didn’t want to deal with the hassle. After all, the documentary spends quite a bit of time discussing the backlash the Robbins family, and to a lesser extent, the Hasan family, received from the community and others.

Nevertheless, the cases were settled for shockingly low amounts. After attorney’s fees, Robbins netted $175,000; Hasan only came away with $10,000.

The discussion regarding Haltzman and his representation of Robbins and Hasan during the settlement proceedings is insightful. The conversation touches on issues of racial inequality in the school district and how most of the students who had been spied on were students of color. The audience learns about some of the seemingly unfair issues surrounding civil representation, attorney’s fees and settlement disbursements.

But perhaps the most enlightening aspect of Spy High deals with the final episode’s discussion of the ever-evolving use of computers in schools and the monitoring software the schools use.

Noting remote learning in the COVID-19 era, the documentary offers interviews with students who attended school during that time who talk about the reality of living through a screen. Most of these children’s interactions with friends were virtual, and they commonly communicated during remote learning through chat features embedded into the computers they were issued.

The chat features allowed schools to earmark specific terms or phrases they found concerning, leading to many unintended consequences. One Minneapolis student essentially had his sexuality “outed” to his parents; the school’s position was that it was concerned about terminology he used with other classmates. This portion of the documentary piggybacks on an earlier discussion regarding students’ limited privacy rights in the digital age.

Ultimately, one of the gay Minneapolis students went to the Minnesota legislature with his story, and Spy High ends by briefly touching on Minnesota’s Student Data Privacy Act, passed in 2022. The documentary would have served itself much better by spending more time addressing this evolving landscape. Most parents see the need for technology in the classroom. Still, we worry whether our children will be protected and if those attempts at protection will ultimately do more harm than good for their mental health as new standards and practices are developed.


Adam Banner May 2023

Adam Banner

Adam R. Banner is the founder and lead attorney of the Oklahoma Legal Group, a criminal defense law firm in Oklahoma City. His practice focuses solely on state and federal criminal defense. He represents the accused against allegations of sex crimes, violent crimes, drug crimes and white-collar crimes.

The study of law isn’t for everyone, yet its practice and procedure seem to permeate pop culture at an increasing rate. This column is about the intersection of law and pop culture in an attempt to separate the real from the ridiculous.


This column reflects the opinions of the author and not necessarily the views of the ABA Journal—or the American Bar Association.





Source link

Judge refuses to block sanctions for Penn Law prof accused of ‘discriminatory and disparaging statements’

Judge refuses to block sanctions for Penn Law prof accused of ‘discriminatory and disparaging statements’


Law Professors

Judge refuses to block sanctions for Penn Law prof accused of ‘discriminatory and disparaging statements’

The eastern facade of the University of Pennsylvania Carey Law School in 2006. (Photo by Jeffrey M. Vinocur, CC-BY-SA-3.0, via Wikimedia Commons)

A federal judge in Philadelphia has refused to block the University of Pennsylvania from sanctioning controversial professor Amy Wax of the University of Pennsylvania Carey Law School, finding that the harm that she claims is not imminent and irreparable.

Senior U.S. District Judge Timothy Savage of the Eastern District of Pennsylvania denied Wax’s injunction request in a June 23 opinion, report Reuters and Bloomberg Law. The Volokh Conspiracy published opinion highlights.

Citing Wax’s “discriminatory and disparaging statements,” the university determined in September that it would suspend Wax with half pay and full benefits for the 2025-2026 academic year. The school also imposed a public reprimand, revoked her named chair position and blocked summer pay “in perpetuity.”

In a March 2022 letter to Wax, the university cited alleged conduct showing a callous disregard to the university community, including:

  • Wax told a Black student who asked whether she agreed that Black people are inferior to white people, “You can have two plants that grow under the same conditions, and one will just grow higher than the other.”

  • Wax asserted on a panel that “our country will be better off with more whites and fewer nonwhites.”

  • Wax told the New Yorker that “women, on average, are less knowledgeable than men” and “less intellectual than men.”

  • Wax said Black people have “different average IQs” than people of other races, and they won’t be “evenly distributed throughout all occupations.”

  • Wax said Asian people lack “thoughtful and audacious individualism,” and “the United States is better off with fewer” of them.

Savage said Wax had not satisfied the requirements for an injunction.

“Wax has failed to show that harm to her reputation is imminent,” Savage said. “What effect the sanctions may have on her reputation has already occurred. She has been publicly disciplined and reprimanded. The sanctions have been publicized. Her suspension was announced. An injunction will not erase that record.”

Wax’s damages, if any, are monetary, Savage said.

Wax has sued for breach of contract, racial discrimination and false light invasion of privacy.

See also:

Penn Law is quicker to discipline whites than minorities, controversial prof alleges in lawsuit

Citing statements Penn Law prof allegedly made while teaching and in interviews, dean asks for discipline against her





Source link

Trump administration tells Supreme Court that judge defied its order allowing third-country deportations

Trump administration tells Supreme Court that judge defied its order allowing third-country deportations


U.S. Supreme Court

Trump administration tells Supreme Court that judge defied its order allowing third-country deportations

Immigrants deported from the United States arrive in Guatemala on an Immigration and Customs Enforcement deportation flight during President Donald Trump’s first term in February 2017. (Photo by John Moore/Getty Images)

The Trump administration told the U.S. Supreme Court on Tuesday that it had to address a federal judge’s “unprecedented defiance” of its order the previous day that allowed deportation of immigrants to countries other than their own.

The administration motion sought clarification of the Supreme Court’s Monday order that temporarily blocked an injunction by U.S. District Judge Brian E. Murphy of the District of Massachusetts.

Murphy had issued an April 18 injunction that required immigrants to be given a chance to contest their removals to third countries.

On Monday evening, Murphy said his May 21 ruling enforcing the now-blocked injunction remains in effect. The enforcement order required the U.S. Department of Homeland Security to maintain custody of migrants flown to third countries while he considers whether their removals violated his April 18 order. As a result of the order, eight immigrants who oppose deportation to South Sudan, a country in East Africa, are being held at a U.S. naval base in Djibouti, another country in East Africa.

The New York Times, Reuters and SCOTUSblog are among the publications that covered the request by U.S. Solicitor General D. John Sauer.

The government’s clarification request called Murphy’s decision “a lawless act of defiance that, once again, disrupts sensitive diplomatic relations and slams the brakes on the executive’s lawful efforts to effectuate third-country removals.”

Sauer said the Supreme Court must “make clear beyond any doubt that the government can immediately proceed with the third-country removals of the criminal aliens from Djibouti.”

Lawyers for the eight men countered that the government had “repeatedly defied” Murphy’s April 18 injunction and continued enforcement of Murphy’s May 21 remedial order “preserves the status quo, ensuring that class members receive the remedy to which they are entitled.”

The case is U.S. Department of Homeland Security v. D.V.D.





Source link