Associate Reviews Are Influenced by Market Conditions: The Morning Minute
The news and analysis you need to start your day.
November 04, 2022 at 06:00 AM
6 minute read
Law Firm Associates
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WHAT WE'RE WATCHING
IT'S NOT ME, IT'S YOU - Big Law is looking to cut head count because of the struggling economy without, y'know, making it look like they're cutting head count because of the struggling economy. With performance reviews underway at law firms this quarter, industry observers told Law.com's Justin Henry that Kirkland & Ellis won't be the only top 50 firm using billable hours and work quality as reasons to weed out so-called underperformers during a period of slower demand in the legal industry. Firm leaders say performance reviews of associates have multiple uses to firms—sometimes a form of feedback on an associate's career trajectory at the firm, an evaluation to inform year-end bonus compensation or an occasion to tell them to find new employment. But such evaluations never take place in a vacuum and are impacted by broader market forces like demand for legal services and the potential for a recession in the coming months, according to recruiters and consultants in contact with recently let-go associates. "Firms would rather say we have to lay off people because of performance," said Brian Levinson, founder of Alevistar Legal Search in Philadelphia. "When things are really good, they are not looking to trim their head count. But when things slow down, it makes sense to get rid of their least productive performers."
NO TIME LIKE THE PRESENT - Law firms aren't the only ones making decisions right now that they probably wouldn't make under better circumstances. As Law.com's Heather Nevitt writes in this week's Barometer newsletter, there is already significant pressure on legal departments, now add onto that budget season, a looming recession, a continuing challenge around overwhelming workloads and systemic burnout, and you get the picture. The current climate could force legal department leaders to adopt short-term thinking, to the long-term detriment of their businesses. As one GC put it: "Do we have the time to address the more forward-looking, longer-term issues? In some sense, corporations are not unlike a family trying to decide whether they are going to save for college or put food on the table." "The other issue is simply bandwidth," the GC continued. "There is a perception outside the walls of a corporation that corporations have sort of unlimited resources—that whatever needs to get done, gets done. There are a limited number of people who have a limited amount of time." To receive the Law.com Barometer directly to your inbox each week, click here.
WHO GOT THE WORK?℠ - Neil J. McNabnay of Fish & Richardson has entered an appearance for Target in a pending patent infringement lawsuit. The dispute centers on the Target mobile app and its ability to help customers find information about products within a specific store, including the price, location and quantity in stock. The case was filed Aug. 4 in Wisconsin Western District Court by Boyle Fredrickson on behalf of Innovaport LLC. The case, assigned to U.S. District Judge William M. Conley, is 3:22-cv-00425, Innovaport LLC v. Target Corp. >> Read the filing on Law.com Radar and check out the most recent edition of Law.com's Who Got the Work?℠ column to find out which law firms and lawyers are being brought in to handle key cases and close major deals for their clients.
ON THE RADAR -Gordon Rees Scully Mansukhani filed a trade secret lawsuit Thursday in Texas Northern District Court against ABC Tax and Accounting Corp., Singa Tax and Financial Services Corp. and president Jek Yong. The lawsuit contends the defendants violated the non-competition provision of a franchising agreement by misappropriating confidential information, including client lists. The court action was filed on behalf of JTH Tax LLC, doing business as Liberty Tax. Counsel have not yet appeared for the defendants. The case is 3:22-cv-02464, JTH Tax, LLC v. Yong et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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EDITOR'S PICKS
Americans' Opinion on Civil Justice System Offers Plaintiffs Firms Case Strategy Road Map By Christine Schiffner |
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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