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Law Profession Adjusting to Lives, Kids
Headline News | 2008/01/28 13:46

In the last two decades, as working schedules became flexible, and even accounting firms, of all places, embraced the mantra of work-life balance (at least on paper), there was one unbending, tradition-bound profession: The law.

That is why it is so remarkable to watch the legal world racing - metaphorical black robes flapping - to catch up.

Over the last few years and, most strikingly, the last few months, law firms have been forced to rethink long-standing ways of doing business, if they are to remain fully competitive.

As chronicled by my colleague Alex Williams in the Sunday Styles section earlier this month, lawyers are overworked, depressed and leaving.

Less obvious, but potentially more dramatic, are the signs that their firms are finally becoming serious about slowing the stampede for the door. So far the change - which includes taking fresh looks at the billable hour, schedules and partnership tracks - is mostly at the smaller firms. But even some of the larger, more hidebound employers are taking notice.

"There are things happening everywhere, enough to call it a movement," said Deborah Epstein Henry, who founded Flex-Time Lawyers, a consulting firm that creates initiatives encouraging work-life balance for law firms, with an emphasis on the retention and promotion of women. "The firms don't think of it as a movement, because it is happening in isolation, one firm at a time. But if you step back and see the whole puzzle, there is definitely real change."

Last month, Henry's ambitious proposal was published in the magazine Diversity and the Bar. Her plan, called FACTS, takes on law-firm bedrock - billable hours, which are how lawyers have calculated their fees for more than 50 years.

At nearly every large American firm, lawyers must meet a quota of hours. During the 1960s and 1970s, the requirement was between 1,600 and 1,800 hours a year or about 34 hours a week, not counting time for the restroom or lunch or water cooler breaks. Today that has risen to 2,000 to 2,200 hours, or roughly 42 hours a week. (Billing 40 hours a week means putting in upward of 60 at the office.)

FACTS is an acronym. Under Henry's proposal, work time can be: Fixed (allowing lawyers to choose less high-profile work for more predictable schedules), or Annualized (intense bursts of high-adrenaline work followed by relative lulls); Core (with blocks mapped out for work and for commitments like meeting children at the bus); Targeted (an agreed-upon goal of hours, set annually, customized for each worker, with compensation adjusted accordingly); and Shared (exactly as it sounds).

Henry's proposal came at the end of last year, when firms had already started backing away from the billable hour.

Some firms have gone so far as to eliminate the billable hour. The Rosen law firm in Raleigh, N.C., one of the largest divorce firms on the East Coast, did so this year, instead charging clients a flat fee.

Similarly, Dreier, a firm with offices in New York and Los Angeles, pays its lawyers salaries and bonuses based on revenue generated, not hours billed.

At Quarles & Brady, a firm with headquarters in Chicago, not only have billable hour requirements been eliminated, but parental leave has been expanded. Women can take 12 weeks with pay, men six weeks. And that time can be divided, meaning a father can take a few weeks off when his baby is born and a few more after his wife returns to work. Other firms are making smaller changes.

REDUCED PAY, REDUCED SCHEDULE

Howrey, a global firm in Washington, is tinkering not only with how much associates bill, but also with their pay.

That is the message behind changes at Chapman & Cutler, a midsize firm in Chicago, which rolled out a two-tier pay scale in September.

Associates can choose to bill 2,000 hours a year and be paid accordingly. Those who would like to see their families a little more can opt for 1,850 billable hours. Both groups will have a chance to become partner, albeit at different paces. Given the choice, more than half took the reduced schedule.

"What is happening now is not just about the needs and demands of women," said Lauren Stiller Rikleen, who directs the Bowditch Institute for Women's Success.

Law is responding to a confluence of factors, said Rikleen, the author of "Ending the Gauntlet: Removing Barriers to Women's Success in the Law" (Thomson Legalworks, 2006).

First, clients, reacting to spiraling legal costs, have begun insisting on flat-fee deals.

In addition, "you can't ignore the generational piece," Rikleen said. On one end of the spectrum are baby boomers, nearing retirement and mindful of the flexible schedules that did not exist at the start of their careers. At the other end are Gen Y workers, some nearing 30 and in want of a life.

FIGHTING FOR A LIFE

A group of students at Stanford Law School, for instance, shook up the legal world in 2006 when they formed Law Students Building a Better Legal Profession. The Stanford group has more than 130 members, and other elite schools like Yale and New York University have formed chapters. The Stanford organization has published a ranking of firms based on how they treat employees; members vow not to work for those who don't rate well.

Andrew Bruck, a president of the Stanford group, told the Legal Times: "Just because something always has been doesn't mean that it always must be."

A harbinger of changing times might well be the brief filed by the hard-driving white-shoe firm of Weil Gotshal & Manges of New York, asking a judge to reschedule hearings set for Dec. 18, 19, 20 and 27 of last year.

"Those dates are smack in the middle of our children's winter breaks, which are sometimes the only times to be with our children," the lawyers wrote. The judge moved the hearings.



Judith Regan Lawsuit Settled Is Settled
Headline News | 2008/01/27 03:30
The war is over: Judith Regan, the publisher fired in the wake of her efforts to release O.J. Simpson's hypothetical "confession," has settled her $100 million lawsuit with Rupert Murdoch's News Corporation. "The parties are pleased that they have reached an equitable, confidential settlement, with no admission of liability by any party," according to a joint statement issued Friday.

"I am grateful for the opportunity to have worked with so many gifted people and am looking forward to my next venture," Regan, who filed a $100 million defamation suit last November, said in a statement.

Regan's ReganBooks imprint at HarperCollins published a long list of racy best sellers, including Jose Canseco's "Juiced" and Jenna Jameson's "How to Make Love Like a Porn Star." But she was fired in December 2006, less than a month after Murdoch canceled her plans to publish O.J. Simpson's allegedly fictional murder confession, "If I Did It." The book and a companion Fox television interview were greeted with widespread public outrage.

"Ms. Regan is a talented publisher who created many award-winning and best-selling books during her twelve and a half years at the company," the company said in a statement. "News Corp. thanks Ms. Regan for her outstanding contributions and wishes her continued success."

At the time of her firing, when she still had more than two years on her contract, News Corp. alleged that Regan made anti-Semitic comments to a company lawyer during an angry telephone conversation.

"This charge was completely fabricated," according to Regan's lawsuit.

"After carefully considering the matter, we accept Ms. Regan's position that she did not say anything that was anti-Semitic in nature, and further believe that Ms. Regan is not anti-Semitic," News Corp. said Friday.

Regan had also accused her former employers of asking her to lie to federal investigators about Bernard Kerik, the former New York City police commissioner who was once her lover, and had tried to smear her.

Regan said the smear campaign stems from her past intimate relationship with Kerik, who was police commissioner under former Mayor Rudolph Giuliani, and from the political agenda of News Corp.

Giuliani, a Republican, appointed Kerik police commissioner and recommended him to President Bush for secretary of the Department of Homeland Security. Kerik had to withdraw his nomination after it was revealed he had not reported the wages he paid to a nanny. He was indicted last November, days before Regan filed her lawsuit, on counts including accusations of lying to the White House and filing false income tax returns. He has pleaded not guilty to the charges.



Atlanta labor law firm plants flag in San Francisco
Headline News | 2008/01/25 13:48

A fast-growing labor and employment law firm from Atlanta has planted its flag in San Francisco.

Ogletree Deakins Nash Smoak & Stewart PC raided two law firms in the city for partners to launch its newest location.

Thomas McInerney joined from Thelen Reid Brown Raysman & Steiner LLP, where he was a partner in the firm's labor and employment law group. Douglas Farmer, formerly a partner at Sheppard Mullin Richter & Hampton LLP, is Ogletree's new managing partner in the San Francisco office.

Ogletree, with more than 400 attorneys in 33 offices across the country, is the nation's third largest labor and employment law firm -- behind Jackson Lewis LLP and San Francisco-based Littler Mendelson PC. Ogletree said it represents more than half of the Fortune 50 corporations in the United States. McInerney and Farmer bring clients to Ogletree in a number of industries, including television, retail, health care and engineering.

McInerney's and Farmer's jump to Ogletree illustrates a growing tendency among labor and employment partners: They are bolting general practice firms to join speciality shops. One big reason: rates. Many general practice law firms charge higher hourly rates for labor and employment work than do specialty firms. By moving their labor practice to a boutique, labor lawyers can offer lower rates and hold onto cherished clients.

Clients are another factor fueling partners' lateral moves. Fortune 500 companies are cutting back on the number of labor firms they use. To make themselves more attractive to these clients, some lawyers are joining specialty labor and employment firms to be able to cater to those companies' needs.

Farmer said Ogletree is seeking additional partners for its San Francisco office. He would like the firm to have 12 attorneys in the city within two years.

Founded in 1977 , Ogletree already has a presence in California. The firm opened a branch in Los Angeles in 2003. Ogletree opened seven offices across the country last year, including Cleveland, Philadelphia, Memphis, Tenn., and St. Louis.



Texas Panel That Charged Justice Invalid
Headline News | 2008/01/25 09:43
A bizarre legal battle effectively ended Tuesday when a judge ruled that a grand jury that indicted a Texas Supreme Court justice over the prosecutor's objections was operating with improperly filed paperwork, the justice's attorney and the grand jury foreman said.

The mistake, made when the Harris County district attorney's office extended the grand jury's term in November, invalidated all indictments issued after that point, District Judge Jim Wallace ruled. That includes last week's tampering-with-evidence charge against Justice David Medina, and an arson charge against his wife, in connection with a fire at their home in June.

District Attorney Chuck Rosenthal had quickly dropped the charges, saying there was insufficient evidence. Angry grand jurors said the move was politically motivated, and their foreman, Robert Ryan, said he had planned to reconvene the panel Wednesday to issue another indictment.

Those plans were scuttled by Wallace's ruling, said Ryan, who has served on five grand juries.

Ryan said he and several other grand jurors were outraged by the judge's decision over what he described as a "boilerplate" order routinely issued by the district attorney's office to extend grand jury terms.

"That just shows you the sheer incompetence of the district attorney's office of Harris County, Texas," Ryan said.

Prosecutors have said they are continuing to investigate the June 28 fire that destroyed the Medinas' home, damaged two other houses and caused nearly $1 million in damage in the Houston suburb of Spring. But the couple's attorney Terry Yates expressed hope that the case was over.

"It's been a roller coaster for them. Obviously, they're very pleased," Yates said. "We hope this is a final chapter in this case and that it effectively ends the prosecution of David Medina."

The fire marshal's office has said the fire was not electrical or accidental. A dog detected an accelerant at the scene.

Investigators became suspicious after discovering a mortgage company sued in June 2006 to foreclose on the $300,000 home. The lawsuit, filed after the family missed payments for five months, was settled in December 2006.

Yates has acknowledged the family had financial problems. They owed nearly $1,900 in fees to a homeowners association and let the insurance policy on the house lapse, meaning losses from the fire were not covered.

Medina was appointed by the governor to the state's highest civil court in 2004 and elected to a full term two years later. He and the district attorney are Republicans.

Rosenthal dropped out of his re-election campaign but has refused calls for his resignation after the embarrassing release of dozens of pornographic, racist and political e-mails on his office computer.



Law firm creates climate change group
Headline News | 2008/01/24 11:41

Law firm Stinson Morrison Hecker has marshaled some of its lawyers from different specialties to form the Climate Change Practice Group.

The group's members include David Bengtson, Stinson's Wichita managing partner, as well as 29 other lawyers in five of Stinson's eight offices across the country.

Mark Johnson, practice leader of the climate change group and a lawyer practicing in environmental law, said several factors led the Kansas City, Mo.-based firm to form the practice group. Those include client needs and an increasing focus at the state and federal levels on climate change legislation.

The idea solidified when Johnson attended a seminar on the Clean Air Act last year in Washington, D.C.

"It seemed like the discussions were dominated by climate change," he said.

Legislation in Congress, such as the America's Climate Security Act, whichaims to cut greenhouse gas emissions, will likely have an impact on business, Johnson said.

A bill has been introduced in the Missouri Legislature that would require greenhouse gas emissions reporting and also calls for greenhouse gas reductions.

And in Kansas, Sunflower Electric Power Corp., which wants to build two coal-fired power plants, is battling state regulators over the potential of carbon dioxide emissions.

"I think it's really a reaction to the changing legal environment... in which all of our clients operate," Bengtson said of the creation of the practice group.

Johnson and Bengtson, who specialize in the oil and gas industry, said the lawyers in the practice group specialize in several areas, including securities law, corporate law and real estate.

Bengtson and Johnson think Stinson is the first firm in Kansas and Missouri to create a practice group representing businesses affected by climate change issues.

Local law firm officials said they are not aware of other firms forming similar practice groups, though there are lawyers in the Wichita area who specialize in environmental law.

Nationally, there are firms that have similar environment-focused practice groups, including Hogan & Hartson in Washington, D.C., and Perkins Coie in Seattle.



Two shareholders leave Orlando law firm
Headline News | 2008/01/23 11:41

The Orlando law firm of Moran & Shams P.A. announced that two of its shareholders are leaving and the firm's name will change.

Maurice "Mo" Shams and Sidney Shams are departing amicably, the firm says.

The 14-attorney commercial law firm, renamed Moran Kidd Lyons Johnson & Berkson P. A., will remain at 111 N. Orange Ave., Suite 1200.

Meanwhile, the Shams have set up a new law firm in Maitland, to be called the Shams Law Firm, at 1015 Maitland Center Commons Blvd., Suite 110.

A joint statement by the Orlando firm and the Shams says the two attorneys are leaving to focus on their business, tax, estate and real estate practice.

"In light of the longstanding personal friendships and mutual respect of all of the firm's shareholders, the transition has been amicable and cooperative," says the statement.




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