The Art of Spin

A helpful commenter pointed us towards an "interesting" article in Las Vegas Business Press about our friends over at ATMS. In the article, ATMS explains how the firm has been able to increase its hiring while "other firms" are forced to do layoffs. The article gave us quite a chuckle, here are a couple of our favorite excerpts (with a bit of commentary):

The staffing increase is part of Alverson Taylor Mortensen & Sanders' business strategy. In boom times, many prominent Las Vegas law offices tended to hire experienced attorneys with a large portfolio of business under their belts. This firm, however, likes to hire recent law school graduates.

"We like to hire people right out of law school and train them properly, and we can train them right," Taylor said. "We believe we are better at training new attorneys than anyone else."

Plus, people right out of law school don't laugh quite as hard when ATMS tells them they will be paid by the hour and not reimbursed for parking.

Partner J. Bruce Alverson said his firm hasn't been hammered by the economy the way some other law offices were.

"We didn't do any layoffs, like the other law firms," Alverson said. "We only had four transactional attorneys, and their work slowed. But we absorbed them in other areas."

Right. It couldn't have anything to do with the fact that those "other firms" don't have a constant flow of attorneys heading out the back door. That would be silly. Oh, and Bruce means "absorbed" literally ... the partners ate the slow associates.

Check out the article for more "ATMS Presents: How to Build a Successful Firm on the Backs of Inexperienced Law Students."

(LVBP)

WWL Mailbag: Brownstein Hyatt On Lockdown?

Given our current economic climate, it's not surprising that some firms may be a bit touchy when it comes to letting people go. After all, it's not as if a laid-off associate has many options available to them, and they may get a bit touchy about being thrown out on the street.

If the following rumor is true, however, we're going to need some details. We received the following tip yesterday:

Our [redacted] just visited Brownstein Hyatt Farber Schreck to [redacted]. He tried to take the elevator to the 16th floor, but the elevator would not allow him to do so until he checked in with security. He spoke to one of the secretaries there who informed him that a few employees have been laid off and they supposedly "got violent" while leaving. So now everybody has to check in with security before accessing Brownstein because of the lockdown. But that's just the word on the street...

Indeed. Did BHFS recently do a round of layoffs, or was this rumored policy instituted when that supposed "lone associate" got cut back in April? Anyone from BHFS care to confirm, deny, or define "got violent?"

Oh, damn ... please tell us this won't affect our access to Jason's Deli! Where will we get our Po'boys?!

(Thanks, Tipster!)

UPDATE: Well, BHFS is in "lockdown" mode, but it isn't because of disgruntled employees. Apparently, the increased security is due to threats one of their attorneys received in relation to a case. Thanks for the clarification, Karen.

Valley Layoff Watch: Have We Bottomed Out?

An interesting conversation in the comments caught our eye yesterday, and we wanted to see what you guys & gals thought. It started as follows:

This is a bit off topic, but . . . A recruiter from Ballard Spahr has contacted most of the associates in my firm's litigation department regarding openings. We have also been contacted by local recruiters for positions at unnamed firms. I also understand that Gordon & Silver is actively recruiting.

We are a bit surprised - our litigation department has been busy but we are still hearing that the economy is making things tight.

Any thoughts on the expansion by these firms? Is the economy turning around? Are any other firms actively looking for laterals?

Then, our local Shark Pimp (and past WWL contributor), Jordan Ross, weighed in with his analysis:

I think the best and most cautious way to describe the state of the legal economy in Las Vegas is that it has bottomed out. There are some definite signs of improvement; I'm currently looking for a Commercial Litigator, a Insurance Defense Litigator and a couple of IP attorneys, among others. By the way, the people in your firm were probably contacted by an outside recruiter; it's almost unheard of for an in house recruiter to solicit non-equity attorneys. Budgets are still very tight right now and any potential new hire has to pencil out well into the black, but yes, I think we are starting to see some improvement. For myself, this is shaping up to be an oddly lucrative year.

Let's do a little impromptu poll regarding our current legal job market. From where you currently-employed commenters sit at your various firms, do things seem to be looking up? Or, possibly, are we seeing the calm before a post-holiday storm?

Valley Layoff Watch: Happy Holidays Edition

We are foregoing today's open thread, as we assume most of you are (hopefully) not working. How about some bad news instead?

Rumor has it that our old friends at Jones Vargas just laid off an unknown number of attorneys from their transactional/real estate group. These guys have wonderful timing, as evidenced by their late rescission of summer associate offers last March and this latest "Happy Holidays" round of layoffs.

Apparently, JV's Reno office is doing fine, as they recently announced the addition of former federal district court judge and current republican candidate for governor, Brian Sandoval.

If you're feeling a bit too upbeat today, head on over to the Las Vegas Business Press where you'll find an interview with JV's President, Joe Brown, and Lionel Sawyer's Managing Partner, Paul Hejmanowski, about how things are going in our market. You'll be reaching for the antacid in no time. Happy Nevada Day!

(Thanks, tipster!)

Layoff Watch and a Departure from Lewis & Roca

Update: We have confirmation that Albright Stoddard just let go of 5 attorneys.

An anonymous tipster contacted me today to tell me that Albright Stoddard let go seven five associates.

Can anyone confirm if it was indeed seven five associates, and not a combination of associates and staff?

In addition, Martha Ashcraft left Lewis & Roca to start her own practice. Marti was the President of the CCBA in 1997. From what I've heard about her legal skills, she will be very successful. Good luck with your new practice!

Anyone Have A Life Raft?

It looks like quite a few associates over at the slowly sinking ship S.S. Alverson Taylor Mortensen & Sanders are singing "We're Not Gonna Take It Anymore." We have received numerous tips stating that morale is at an all-time low, and at least 8 associates are actively looking to jump ship, some with many years invested with the firm.

According to the tips, ATMS put on quite the whiteboard presentation for incoming associates to justify their comparatively low "salaries" (read: hourly pay). Previously, ATMS has justified their $78,000 base by including raises, 401K matching and insurance coverage into the calculation, and telling associates that when all this is taken into consideration, ATMS is on par with other (higher paying) firms in the valley.

Well, that has changed now, and some ATMS associates are feeling a bit betrayed. Here's how the cuts went down, according to one source:

When they announced the pay freeze a couple months ago, all of the groups (partners) met with their associates and support staff and explained why the freeze was being instituted. In my group and many of the other groups, the question was asked whether any other cuts would be happening, and the answer was NO. Re-read the email from Bruce's secretary....it says that "many other options were considered, but this was the one chosen [pay freezes]..." 

Two days later, we got an email saying that our 401k match was suspended. Some of us again asked if this was the last cut, and again were told that yes, this is the only thing and that our insurance was not going to be changed. Two months later, we get another email informing us that we no longer have insurance. If you're going to do it, have the balls to tell people to their face when they ask you a yes or no question. Don't look them in the eye and tell them that no more changes are coming, then send an f-ing email two days later.
It's chicken shit at best.

Things have apparently gotten so bad that a group of associates has set up an anonymous email account for employers who may have openings for ATMS refugees. Any employers interested in hiring ATMS associates are asked to send an email to: lookingforgreenergrass@gmail.com.

We're certainly not an employment service, but this got us thinking. There are open positions out there somewhere, and with the recent carnage in the legal market we think it may be good to do a little "who's hiring" roll call. So, does anyone know of any open positions out there? Let us know in the comments. We're sure that any former ATMS, KKBRF, Jones Vargas, Ballard Spahr, Santoro Driggs, or Brownstein Hyatt associates would appreciate it (not to mention victims of smaller firm "cutbacks" and recent Boyd School of Law grads without jobs). 

Let's see what our collective WWL hive-mind can come up with for these unfortunate souls.

(Thanks tipsters!)

Valley Layoff Watch, Part 5

This week we offer you a potpourri of layoff & salary-cut rumors from firms in the Valley.

First, Brownstein Hyatt Farber Schreck gave associates (in Denver) a choice between deeper job cuts and higher salaries, or deeper salary cuts and fewer job losses. The associates opted for the salary cuts, and reportedly saved eight jobs. (Yeah, right.) The firm still cut 15 associates and 22 staff members. Rumor has it that their Las Vegas office only lost one attorney.

Next, Greenberg Traurig decided to cut salaries for summer associates and first year attorneys by 10%. Yet another sign that the rumored merger with KKBRF is likely toast.

Speaking of our friends at Kummer Kaempfer, recent comments in this post point to more bad news for the firm. It all started with this:

KKBRF is at it again! A large amount of the firms top lawyers are bailing and leaving the rest of the firm to fend for themselves. Top dog Michael Bonner along with several others will be going to Greenberg Traurig after all. There will only be like 12 attorneys left in the whole "mega firm" and who will suffer...the support staff who will be let go.

That was followed up by a commenter who said that Tom Kummer may be leaving the firm as well. Good luck to all of you KKBRF associates if this is true.

Finally, we got a random comment yesterday on a very old post that simply said: "The bloom is off the rose ... attorneys are leaving [Holland & Hart] not by their own choice." We're not the gardening type, so we don't really get the euphemism ... but it sure doesn't sound good.

(Denver Business Journal; ATL)

See, It's Not All Bad ...

We have a bit of good news today (although not for Boyd students). It looks like local firm Lionel Sawyer & Collins is actually adding attorneys. Wait! Don't all jump into your leased Beemer's and race to their office just yet ... the positions have been filled. LSC brought on five new associates recently:

Jing Zaho from Michigan;

Abigayle Dang from Washington University;

Greg Carlson from UC Hastings;

Brin Gibson from BYU; and

Elizabeth High, former D.C. Associate and Federal District Court Clerk.

If your name is not listed above, you may return to your job search ... sorry if we got your hopes up.

But seriously, it is good to see that LSC (for the time being, anyway) has shown an ability to manage itself in a financially responsible manner. When asked if there were changes taking place at LSC due to the current economic climate, our helpful tipster responded that there were "no real changes except for a smaller incoming class and smaller summer associate class." What? You mean to say that it isn't necessary to freeze salaries and nuke summer programs to stay profitable ... the hell you say!

When asked about the lack of Boyd hires, he responded:

While I'm not part of the hiring process, I think a large part of the Boyd thing is that there is a lot of competition among firms for the top of the class and not a lot for everyone else. So if we interview the top 10 - 15 students, probably 5 - 10 of them are a good fit, and those 5 - 10 probably have multiple offers. So it's not unreasonable to think that we might not end up with any Boyd students. And why dip lower in to the Boyd class when there are other well qualified
candidates out there (like the ones mentioned above)?

Ouch! That stings a little.

Come on, LSC ... let's show a little local love. Is there really that big of a difference between #15 and #30 at Boyd? Maybe you guys should drop the "law school grades = ability to practice" garbage and dig a little deeper for some local talent. You did, after all, hire their former dean.

(Thanks, VD)

Valley Layoff Watch, Part 4 - The Big Freeze

It looks like local sweatshop Alverson Taylor Mortensen & Sanders has made the prospect of working there even more appealing. As if conditions weren't bad enough for associates, ATMS sent out two emails last week that made things even worse. The first email tried to soften the blow for a couple paragraphs, right before kicking associates in their collective nuts:

From: [Secretary]

Subject: Message From Bruce Alverson

As most of you already know, as a result of our country’s current economic times, virtually all of our clients have refused our requests for hourly rate increases. At least one client has filed bankruptcy and several more are rumored to be on that economic path. In short, our revenues are capped at least for the foreseeable future. Basic math tells us that if revenues are capped, we must make every effort to hold the line on expenses.

Salaries are the single largest expenditure in a law firm. Historically, we have given raises every six months. To our knowledge, we are the only firm in Las Vegas to review salaries and give raises that frequently. In an effort to control costs, we have considered various options that other law firms are using—ranging from layoffs to salary cuts to reduced work hours with a proportional salary reduction.

The partners have decided on a far less drastic measure. We are not giving salary increases at this time. We will re-examine this decision in six months.

Bruce

So, they have considered "reduced work hours with a proportional salary reduction?" How exactly would that work under an hourly system?

We realize that pay freezes aren't on the same level as layoffs, but ATMS associates have it pretty rough already. Up until now, ATMS has given "guaranteed" raises of $6000 every 6 months to associates, a fact often cited by ATMS associates when they are asked about working at one of the lowest-paying firms in town and used by ATMS recruiters when bringing in "fresh meat."

According to our tipsters, because ATMS raises their base salary each year for incoming associates, if things stay the way they are, first-year associates who start after the July bar (if they start at all) will be making more than the second year associates who just had their April raises eliminated. This is because ATMS raises are given twice a year, in October and April, and new associates don't get the benefit of the October raise because bar results come out in mid October, thus they aren't attorneys yet (another classy move). ATMS second-years must be feeling awesome about that.

But the fun didn't end there for ATMS associates. A second email was sent days after the first, only there was no "softening the blow" this time:

From: [Same Secretary]

Subject: MESSAGE FROM BRUCE ALVERSON

Effective 30 days from today, ATM&S is suspending the matching fund provision in our 401k plan. That is, the firm will not match future contributions. The 401k plan remains in effect–you can make personal contributions, but the firm will not contribute a matching amount. If you wish to stop contributing, contact [redacted] immediately and she will explain the process.

We will reconsider this issue in six months.

Bruce

Losing your raise and your 401K matching all in the same week ... ouch! We're pretty sure that ATMS is running out of "benefits" to cut. Perhaps they are just doing this so associates will leave on their own and ATMS can avoid using the "L" word.

By the way, what's with Bruce Alverson having his secretary send these emails? We guess he can't be bothered to address his associates directly ... must be too busy scanning the parking lot for pennies to pick up.

(Thanks tipsters)

Valley Layoff Watch, Part 3

Yes, that's right, we have back-to-back Layoff Watch posts, and this time there are actual layoffs to report. The culprit is Santoro Driggs Walch Kearney Holley & Thompson who, according to our math, has recently cut loose 5 4 people. From our anonymous tipster:

3 people have left Santoro Driggs in the past few days. Two have left on their own accord, but the rumor is they are just running in front of the broom. Two others were let go. The two that were let go may or may not have been given a period of time to try and find new jobs before they are officially taken off the payroll.

Yikes! Sounds like trouble. We wonder if these cuts are related to the rumored layoffs we heard about back in February.

UPDATE

We've received clarification that there were only 4 associates involved, not 5.

(Thanks, Anon)

Valley Layoff Watch, Part 2.9

We're still not sure what to call these quasi-cutbacks; they are not quite layoffs, but they certainly are not good news for the job market. Regardless, we have received more bad news. 

The local office of national firm Ballard Spahr Andrews & Ingersoll (which acquired Curran and Parry about two years ago to establish its valley presence) has delayed the start dates for its newly-hired associates until Fall of 2010. No word on whether the associates were offered a "Latham" ... but we seriously doubt it.

This comes as a bit of a shock to us, because at this time last year the firm was boasting that profits were up 15 percent, totaling $280 million for 2007. Additionally, the firm had established one of the best associate pay scales in the valley, starting its first-year associates at $133,000 (remember ... back when "Magic Numbers" used to matter).

We understand that these firms are running a business, but isn't this a little late in the game to be calling audibles? 

Layoff Watch, Part 2.5

Ok, maybe Jones Vargas' latest shenanigans don't officially count as "layoffs," but we thought the story deserved its own post. As mentioned in the previous post, Jones Vargas has recently rescinded offers made to all 2Ls for summer associates positions, completely scrapping their summer program.

We have also learned that Jones Vargas has reneged the offers extended to last year's summer associates.

This is a pretty slimy move this late in the game, made worse after considering JV partner Joe Brown's comments to the RJ less than two weeks ago where he said that "his firm hasn't had layoffs." They don't count if they never really worked for you, right?

Good luck to those of you now scrambling for work. Remember: trust no one.

(RJ; Various tipsters)

Rumor Monday

We are looking for confirmations/denials regarding the following rumors, feel free enlighten us in the comments:

• Rumor #1: The Heavy Hitter may have just gone through a round of layoffs. (We have a hard time believing this one, as it appears that plaintiff's firms are doing just fine in this economy.)

• Rumor #2: The traffic ticket busting firms in town may be planning to finance a campaign against Chief Judge Ann Zimmerman when she comes up for election. Apparently, the mystery candidate being touted has plenty of money on his own, and is expected to be well-backed besides. This likely has to do with the Judge's rumored smack-down on ticket-busting firms.

• Rumor #3: According to an anonymous commenter, the KKBRF - GT merger is officially off. The same commenter adds that one KKBRF litigation partner and two transactional partners are leaving to start their own firm (these attorneys, apparently, were not part of KKBRF's recent bloodbath). Also, KKBRF's governmental affairs group may or may not be leaving in April, depending on which anonymous commenter you believe.

Let us know if you have any information.

UPDATE

• Rumor #4: Jones Vargas has recently rescinded offers to its 2L summer associates. This has been confirmed. We are awaiting a response from Jones Vargas with details. Apparently, summers received a letter in late February indicating that, because of the poor economy, the firm was withdrawing their offers of employment. Nice of them to leave their summers with plenty of time to find alternative placements. Very classy, JV.

Thanks, tipsters!

Layoff Watch, Part II

We started receiving tips yesterday that KKBRF has recently made some major cuts. According to the tips, the layoffs started in their Reno office on Wednesday with one partner and one associate being cut loose. On Thursday, they reportedly laid off three transactional attorneys and "at least" two litigation attorneys, plus staff. 

Apparently, no one is sure if the (rumored) cuts are related to the (rumored) merger with Greenberg Traurig, or if the economy is to blame. Either way it sucks. This is truly a sad state of affairs, and our hearts go out to our fellow colleagues. Please post any denials, confirmations or further information in the comments. 

UPDATE:

We received a follow up tip with the final body count: 

4 - Litigation attorneys (2 from Vegas, 2 from Reno)
4 - Transactional attorneys (one very pregnant)
1 - Government Affairs attorney
All related staff

We also received news from one of our tipsters regarding the post-massacre meeting:

"There was a firm wide meeting at the end of the day where they said that the remaining attorneys who had not been laid off would be the firm going forward, and if we merge with GT, this will generally be our firm merging (interesting use of the word "generally" by managing partner Mike Bonner, I overheard some litigation attorneys really parsing his language on that issue...lawyers are nerds). They also said that some partners will be leaving on their own terms by April, no word on which partners. The general justification for the layoffs was the poor economy, though they noted that we have lots of money in the bank after a pretty good year last year. This year is going to be tough.
There is a lot of speculation amongst the remaining associates that more layoffs could occur, and also that a number of partners will split and open a new firm."

SECOND UPDATE  (2/20/08):

Looks like the LV Sun (finally) got around to reporting this. Many thanks to you tipsters for the scoop.

According to the Sun, the total body count was "at least nine attorneys" plus three to four support staff. The Sun was also able to get a quote from the firm:

“We did have some reductions,” firm spokeswoman Diane Gibes said. “Like so many companies across the country we were affected by the economic downturn. It’s unfortunate, but we felt we needed a leaner structure.”

"[W]e felt we needed a leaner structure?" We're sure that makes those of you who ended up on the wrong end of a pink slip feel awesome.

(Thanks for the tips, Anonymous.) 

Valley Layoff Watch

We've held back on posting anything about firm layoffs during these times because, up until now, all we've heard are rumors here and there concerning the occasional "cutback." Well, according to Las Vegas Business Press, it's officially time to start giving this topic some lip service:

Layoffs and firm failures are increasingly hitting the valley as attorneys feel the economic downturn's effects. At least nine more Las Vegas lawyers and other legal professionals have quietly received pink slips in recent months as cash-strapped clients walked away from their bills.

The article focuses primarily on Adams & Rocheleau and Smith Forsberg's layoffs/closings, but Bullivant Houser's trimming of its Vegas office is also mentioned. Additionally, over in the forums, we've heard rumblings of possible cuts from Lewis & Roca, Santoro Driggs, and Greenberg Traurig. We can only wonder how successful Boyd's on campus interviews were this past fall.

So, are these cutbacks really a result of the current economic conditions, or are these firms just using the economy to justify cutting loose some dead weight? Many firms in the Valley have instituted hiring freezes, but are these firms just playing it safe? We know of at least one area of law that is loving this climate: bankruptcy.

So, how about it commenters. Is it time to start panicking, or are lawyers in the valley by and large recession-proof? Let us know your thoughts.

(LV Business Press, LV Sun)

Greetings from a fellow blogger!

Thanks to your generous invitation to post on your blog, I wanted to introduce myself (here) and highlight a few of my recent posts on my own blog. First, a shout-out to Jim Shea, local Las Vegas bankruptcy guru and a member of the American Bankruptcy Institute's executive committee, who speaks about our current bankruptcy crisis in today's Las Vegas Sun (see here). Second, my own thoughts (written before the governor's draconian budget proposal) about the usefulness of higher education to Nevada (see here). I'm looking forward to getting to know "all y'all" (as we say back in my native Texas).

(Posted by Nancy Rapoport)

Will Economic Downturn Affect Law Firms?

Last week, Above the law reported that east coast firms have started downsizing to deal with the lack of real estate and financing business in light of the country's economic woes.

Todat, the Wall Street Journal's Law Blog reports that the slowing economy is affecting litigation departments as well:

Legal consultancy Hildebrandt and Citi Private Bank are due to issue a report today, based in part on financial data furnished by 247 firms, indicating that the subprime mortgage crisis and fears of a recession have triggered not only a decline in corporate legal work but also litigation, a practice area that typically gathers steam in down
economies. “The current downturn has thus far been a ‘perfect storm’” for law firms, according to Hildebrandt and Citi.

Many firms will increase revenue and profits by only modest amounts in 2008, and “some firms will be down a lot in 2008, with decreases in income,” predicts consultant Brad Hildebrandt.

Few firms have so far resorted to layoffs or other drastic cost cutting, in part because many experienced healthy growth in 2007, consultants and lawyers say. But layoffs raise another concern: if attorneys are laid off en masse, firms may be caught flat footed when demand for their services picks up again.

But firms are likely to become more ruthless about “weeding out those attorneys who are not performing as well as they should,” says Mr. Hildebrandt. Firms may be particularly apt to prune at the partner level, even though partner firing were once rare, because partners are costlier and sometimes less productive than more junior lawyers, says Dan DiPietro, of Citi Private Bank.

Will Vegas see a similar pruning of lower billing associates? Has the economy affected the Vegas firms yet? Let me know if you're job is cutting back on perks or laying off associates: nevadalegal@gmail.com