Wake Up Call: Littler to Cut Salaries 50% for Staff Who Can’t Work Remote

In today’s column, the CEO of litigation funder Burford Capital brushed off a 21% profit drop for 2019 and said he expects a busy 2020; the U.S. Supreme Court is set for an “historic” May session, with questioning via telephone and an all-female argument; law grads in New York will temporarily be able to practice under supervision; a pole-dancing teacher is suing Zoom for security lapses, and a Big Law firm warned its lawyers about the app; and, finally, there are new questions about what’s really motivating all those recent partner exits at Boies Schiller.

• Leading off, since the Covid-19 pandemic hit the world economy, dozens of law firms have announced pay cuts, furloughs, layoffs and other measures aimed at surviving the economic impact of what one legal blog calls the “coronapocalypse.” Yesterday, the world’s biggest worklaw firm Littler Mendelson said it’s cutting pay 20% for its “participating shareholders,” aka equity partners, and its top management. Salaries will shrink 15% for nonequity shareholders and non-attorney senior-level administrative employees making over $300,000 per year. Staff pay cuts average 10%. Staff who can’t work remotely will get 50% pay cuts on June 5, but they can use their paid time off to cover the amount they lose, according to reports. (Above the Law) (Daily Report)

• Davis Wright Tremaine had a record 2019 and a strong opening to 2020, but now it says a significant slowdown in collections is forcing it to cut pay across the board, starting with a 25% reduction to equity partner distributions. Meanwhile contract partners and C-level executives will see cuts of 15%, while associates, counsel, and of counsel will see 12% salary cuts. Staff salary cuts range 6% to 10%; while 8% of staff are getting furloughed. The firm also said it’s taking its summer associate program virtual and cutting it to six weeks. (BLAW)

• Meanwhile, Manatt announced 20% pay cuts for all attorneys, which works out to an annualized reduction of 13%. (Above the Law) And in London, Simmons & Simmons became the second U.K. firm, after Ashurst, to delay its promotion round because of the pandemic. (The Lawyer)

• During the pandemic, Big Law firms including Morgan, Lewis & Bockius, Gibson, Dunn & Crutcher, and others, are using remote technology to continue their pro bono help for undocumented immigrants known as “Dreamers.” (BLAW)

• The leader of a stock-market listed U.K. law firm Keystone Law criticized law firms and other companies using the U.K. government’s Covid-19 furlough scheme to “protect their own profits.” (Law.com International)

• Mayer Brown launched an online tool to help companies navigate state and local governments’ varying approaches to re-opening for business, as well as continued Covid-19-related restrictions. The firm also started a tool to help businesses compare stimulus measures rolled out by governments worldwide to revive economies hit by the pandemic shutdown. (MayerBrown.com)

Lawyers, Law Firms

• Burford Capital’s profits fell 21% in 2019 but the litigation funder’s CEO, Christopher Bogart, says he expects a busy year, including a bump from Covid-19. (American Lawyer)

• Boes Schiller Flexner’s new managing partners say the recent wave of partner exits from the firm fit into their plan to downsize and refocus the firm. But “insiders” say the story is not that simple. (American Lawyer) (Business Insider)

• Kirkland & Ellis got scolded by a Texas federal judge for stonewalling a legal recruiting firm trying to get information to enforce a noncompetition agreement against a former employee. (BLAW)

• U.S. Supreme Court justices will have to wait their turn to ask questions during the court’s first-ever telephone arguments starting next week. (Bloomberg News) The two-week May argument session will also be notable for featuring an argument between two female lawyers. (BLAW)

• Nearly three quarters of top corporate legal departments worldwide have at least one dedicated legal operations professional, as companies catch on to the benefits of tech and other tools to boost collaboration and efficiency, according to a new report. (BLAW)

• A new U.S. Patent and Trademark Office program will provide more trial argument opportunities to younger and more diverse attorneys. (BLAW)

• An accused Ponzi schemer who asked the wrong court to review an SEC in-house judge’s ruling against him won’t get a pass for missing the correct court’s filing deadline, the D.C. Circuit said. (BLAW)

• Tesla Inc. CEO Elon Musk decided the company’s directors and officers liability insurance policy was too expensive, so he’s personally providing the coverage. Also, the company apparently still lacks a general counsel. (Bloomberg News)

Reports

• Dechert is holding a May 7 webinar on “how to win an antitrust merger trial.” (Dechert)

• Texas-based global law firm network Lex Mundi, with help from Jenner & Block, published a guide to allow general counsel to compare attorney-client privilege information across over 65 jurisdictions. (LexMundi.com)

In-house Moves

• The new top lawyer of New York State’s financial regulator is the former head of financial crime prevention at two major banks, Richard Weber, who earlier in his career oversaw the Internal Revenue Service’s criminal division. (BN via BLAW)

• Houston-based oilfield services giant Baker Hughes Co. hired a new general counsel, and Minneapolis-based utility holding company Xcel Energy Inc. promoted in-house for its new top lawyer. Several other companies and entities in the U.S. energy sector have also made notable in-house legal appointments in recent weeks. (BLAW)

Technology

• A pole-dancing teacher filed a proposed federal class action against Zoom Video Communications Inc. in California, accusing the company of overpromising on security. She says she discovered the Zoom app’s shortfalls when “uninvited men” started joining her classes for her dance studio. (BLAW)

• Citing security concerns, London-based Mishcon De Reya told its lawyers to get written consent from clients in order to use Zoom for confidential conference calls. (Law.com International via Legalttech News)

• L.A.-based legal tech managed services provider Innovative Computing Systems is conducting a survey that seeks to learn how U.S.-based law firms have responded to the Covid-19 crisis. (InnovativeComp.com)

Legal Education

• An IP law professor in New York used Zoom and weekly wine tastings to bring his students together remotely to discuss legal aspects of the wine business. (New York Law Journal)

• Recent graduates of New York law schools who planned to take the bar exam this summer will be temporarily allowed to practice law under supervision of a qualified attorney, New York state’s chief judge said. (New York Law Journal)