Seyfarth Shaw is set to become the latest firm to flip its incoming associates the Bird. A very angry tipster reports:

[Seyfarth] just deferred all incoming associates to October 2010 with only $2000/month as a stipend beginning on our former start date of January 19, 2010! It’s a joke … we know for a fact that they were busy and could have afforded us. It is a firm managed by horrible, greedy, selfish individuals … This is amusing, in light of the fact that the firm turned a profit last year …

We would like to warn anyone considering accepting an offer from the firm to STAY AWAY!!!!!!!!!!!!!! It is particularly disconcerting for those of us who turned down offers from Biglaw in favor of a firm that apparently “cared soooo much” about us. Go Vault or go home.

Whoa, tell us what you really think. You have to wonder if these deferred incoming associates will come up with any fun banners about their would-be employer.

As angry as the deferred incoming associates appear to be, it is not at all clear that Seyfarth could have afforded to bring on a new class of people at this time. In addition to telling the incoming associates to wait for almost another year, today the firm announced that it was cutting first year associate salaries.

Details and a statement from Seyfarth, after the jump.

Here we are. The end of the Vault 100.

To be on the Vault 100 is to be a well-known firm. Sure, maybe not well-known to law students or junior associates who can’t see past the mountain of doc review boxes in their windowless conference rooms. But known to partners … and clients. Look down your nose at these firms if you wish, but remember the old African proverb: “The smallest elephant can still crush your Lexus.”

Here is the final batch of top law firms for discussion:

91. Stroock & Stroock & Lavan
92. Blank Rome
93. Seyfarth Shaw
94. Kramer Levin Naftalis & Frankel
95. Manatt Phelps & Phillips
96. Squire Sanders & Dempsey
97. Sheppard Mullin Richter & Hampton
98. Patterson Belknap Webb & Tyler
99. Wiley Rein
100. Mintz Levin Cohn Ferris Glovsky and Popeo

What say you about these fine firms? Some final thoughts after the jump.

Ed. note: This post has been revised in a number of important respects after it was published. As a result, many reader comments have been superseded, because they refer to parts of the post that have been edited or deleted. Please refresh your browser to read the latest version. Thank you.

Sarah Getchell is having a rough 2009. The University of Michigan grad was a first year at Seyfarth Shaw, until being laid off in May (perhaps as part of this bunch).

She found new employment at a small labor law firm, Lichten & Liss-Riordan. But then Seyfarth used her hiring to get the new firm removed from a case — not very nice.

While there seems to be some good news for rising 3Ls, there is more bad news for rising 2Ls. Seyfarth Shaw is the latest firm to cancel its 2010 summer program. Here’s the news from an email that went out to associates earlier today:

[T]he Executive Committee has made the decision to not host a summer associate program in 2010. By taking a break from hosting a summer program in 2010, it will allow us to effectively integrate those associates who already are set to start or participating in this year’s summer program. It also will help us get back on a more typical schedule of first-year hiring. This is not a decision to cease hiring from law schools, nor is it a decision to permanently cease a summer program. It is, however, a decision to pause for a year.

For people who have been paying attention to Seyfarth Shaw, today’s news isn’t all that surprising. More details after the jump.

Seyfarth Shaw just announced an extensive “hybrid tough love” package. The firm is laying off employees as well as cutting salaries. It is also reducing the length of the summer program and pushing back start dates.

According to a firm wide memo, 50 people will be let go:

Today, we have completed a reduction in attorneys and staff of approximately 50 people out of approximately 1,600 people nationwide. These reductions are spread across all offices and practice groups. We deeply regret the need to take these steps. The people affected are our friends and co-workers who have made contributions to the growth of the Firm. We have reached out to every affected person prior to the distribution of this e-mail.

We cannot predict the future but, as we said above, it is our goal by taking this step to avoid any further reductions in positions for the remainder of the year. We know that we will be asking each of you to take on additional responsibilities. We thank you in advance for your continued efforts on behalf of our clients and the Firm.

Seyfarth laid off 30 people back in December, and another 30 people in January. Hopefully, this is the last time layoff survivors will have to worry about their jobs. At least for this year.

After the jump, we get to the other news.

The 90’s were good to Billy Blanks of Tae Bo fame. His taekwando-boxing hybrid workout routine was all the rage across the land, with Paula Abdul a notable follower.

After his career peaked, the legal troubles started. In 1999, he filed a $10 million suit against his agent, because his agent wasn’t licensed to be an agent. And he hired Seyfarth Shaw to represent him. The case did not go well, and Blanks kick-boxed a malpractice suit Seyfarth’s way. One of Seyfarth’s L.A. partners, William Lancaster, bore the full brunt of Blanks’ aerobic fury, because Blanks alleged that he missed the statute of limitations by four weeks because Lancaster was dilly-dallying in the Superior Court system rather than taking his complaint to the labor commissioner, where it belonged.

The malpractice suit was decided in Blanks’ favor, and he was awarded $30 million. But the Second District Court of Appeals has reversed the judgment and remanded the case to the trial court. But not without a cardio-kick to Seyfarth. From the Legal Pad:

[The] Second District Court of Appeal ruling that gave [Seyfarth] that dancing-with-joy moment wasn’t very kind to their law firm: It almost scoffed at their defenses to a celebrity’s claim of legal malpractice….

[Justice Richard Aldrich] had a warning for Seyfarth (and the trial judge) on remand. Aldrich speculated that Seyfarth will argue that Lancaster’s decision to delay filing a TAA petition was “a reasoned choice” or a “prudent trial strategy.” But he indicated that won’t be easy.

“Although attorneys have wide latitude in selecting strategy,” Aldrich wrote, “Seyfarth will have the burden to explain why its choice to delay filing a TAA petition was based upon a rational, professional judgment that would have been made by other reputable attorneys in the community under the same or substantially similar circumstances.”

Billy Blanks is giving Seyfarth quite the work-out.

Seyfarth off Hook for $30 Million Award — for Now [Legal Pad]
Court Throws Out $30 Million Legal Malpractice Award [Metropolitan News-Enterprise]
Second District Court of Appeal Ruling

In December, Seyfarth Shaw laid off 30 attorneys. Today, the wheel came around to a number of staff:

As a result, we have made the very difficult decision to reduce the number of support staff positions in a limited number of offices, including ours. In Chicago, this has affected nine secretaries and five members of local department staff. A total of approximately 25 employees have been affected across the Firm.

A tipster reports:

Old ladies and people with 10+ years experience.

Read the full Seyfarth memo after the jump.

The latest layoff news comes from Seyfarth Shaw. The firm’s Executive Committee sent around a firm-wide email this morning:

As part of our planning for 2009, we have reviewed our staffing in light of market conditions and expected client needs — for now and for the coming year. While we continue to anticipate a solid 2008, we believe there is a need to exercise prudent business judgment and respond to what economists predict will be a continued challenging economic climate in the year ahead.

One of the decisions we have made has been to reduce legal headcount by approximately 30 attorneys and other time keepers across our offices. We believe this is the best course of action for the Firm in light the economic downturn. These are very difficult decisions to make and, we know, hard news to learn.

It’s another classy letter that sends a clear signal to the legal community that former-Seyfarth associates were let go only because of the terrible economic climate that is hurting everyone.

As we understand it, the firm cuts hit the New York, Chicago, Atlanta, and Boston offices.

We don’t know if this will have any impact on the long standing rumor of a merger between Seyfarth Shaw and Squire Sanders. But Seyfarth’s decision comes just two weeks after Squire Sanders announced layoffs of … 30 attorneys. Make of that what you will.

Read the full Seyfarth Shaw announcement after the jump.

Here is yet another rumor — somewhat better sourced than the Thacher Proffitt / King & Spalding rumor, but a rumor nonetheless — about a possible law firm merger.

Word on the street is that Seyfarth Shaw is seeking a merger partner. This should not come as a shock, since Seyfarth has been stumbling a bit due to the downturn. As previously reported, the firm has pushed back start dates and trimmed its lawyer ranks.

The Seyfarth partnership recently returned from its retreat, where strategic opportunities were discussed. The scuttlebutt is that the firm is in “serious” merger talks with another firm of roughly equal size. Upon information and belief, that firm is Squire Sanders.

Both firms hover around the 800-attorney mark. The product of their merger — nicknamed “S4” by one tipster, standing for either “Seyfarth Shaw Squire Sanders” or “Squire Sanders Seyfarth Shaw” — would be a 1600-lawyer behemoth. The combination would give Seyfarth a coveted foothold in Bratislava.

Associate meetings were held in all Seyfarth Shaw offices earlier this afternoon. Associates were briefed on the retreat and told about ongoing merger talks with another firm. Details are scarce; the confidential nature of the merger talks was stressed to the associates “about a dozen times.”

Whether these talks will bear fruit is anyone’s guess. Lately law-firm merger talks have been falling at a high rate.

We’ll keep you posted. If you have any info to share, please email us. Thanks.

We’re a little late in passing along this news, which is from last month. But when it comes to coverage of certain topics, like start dates and layoffs, we aim for completeness.

An article in Crain’s Chicago Business focuses on delayed start dates at major law firms in the Windy City. Most of the news in the piece was previously broken by ATL. See, e.g., Seyfarth Shaw; DLA Piper.

But there’s one nugget of news:

With starting attorney salaries reaching $160,000 a year, delaying new-hire dates is one way to trim expenses. Sonnenschein Nath & Rosenthal LLP, which has 186 attorneys in Chicago and a substantial real estate practice, pushed back starting dates for seven lawyers by two months, to mid-November, a spokeswoman says.

So add Sonnenschein to the list of firms that have delayed start dates for incoming associates. Just like no-offering summer associates, pushing back starting dates is less than ideal. But as we wondered on Friday, such measures may be the lesser of multiple evils (with lawyer layoffs as a greater evil — although some firms have done both).

P.S. Lee Miller might want to coordinate better with his public-relations team. The DLA Piper PR folks previously explained that the change in start dates was made “to provide a uniform start date across all our offices… [and] to have a uniform orientation process.” But Miller tells Crain’s that it’s the economy, stupid:

“Any firm that isn’t careful in this economy is nuts,” says Lee Miller, joint CEO of DLA, Chicago’s eighth-biggest law firm. Mr. Miller says the firm also plans to cut next summer’s recruiting class by as much as one-fifth. “The transactional practices are slower, mirroring the economy, and the capital markets are in turbulent times,” he says.

P.P.S. Today, of course, is Labor Day. Is anyone reading?

Update / Correction: The Sonnenschein start date news was first reported by Bloomberg News on August 5, in a very interesting article on partner pay. As Lindsay Fortado reported, the firm pushed back start dates for 20 of its 24 incoming first-year associates from September to November 15. (The seven lawyers referenced in the Crain’s article appear to be Chicago associates; the firm-wide number appears to be 20.)

Tougher times on the docket [Crain’s Chicago Business]
Wall Street Lawyers Ask Bank, Can You Spare $250,000? [Bloomberg News]

This marks the end of our review of the firms in the Vault 100. This is the final bunch up for discussion (with prestige scores in parentheses):

91. Lovells (4.494)
92. Thelen Reid Brown Raysman & Steiner LLP (4.489)
93. Hughes Hubbard & Reed LLP (4.478)
94. Kramer Levin Naftalis & Frankel LLP (4.459)
95. Kilpatrick Stockton LLP (4.452)
96. Locke Lord Bissell & Liddell LLP (4.439)
97. Squire, Sanders & Dempsey LLP (4.421)
98. Seyfarth Shaw (4.399)
99. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC (4.394)
100. Fenwick & West LLP (4.373)

Discuss. Dissect. Compare. Contrast. Most of all, enjoy.

Earlier: Vault 100 Open Threads - 2009

We’ve been hearing about delayed start dates for incoming associates at Seyfarth Shaw, both in comments and by email. We contacted the firm for confirmation.

A firm spokesperson informed us that start dates for new associates have been pushed back by five weeks, from September 8 to October 13:

Seyfarth Shaw recognizes that we are navigating a difficult economic climate along with everyone else. Accordingly, like a lot of other firms, we have thoughtfully deliberated about steps we can take to help us deal with these conditions with the least disruption to our personnel while ensuring continued best-in-class legal services to our clients.

Out of our deliberations, we have concluded that a prudent, minimally disruptive measure we can take immediately to help keep expenses in control is to delay by a relatively short period of time the start date of our incoming 26 first year associates.

Seyfarth Shaw is quite sound financially, indeed most of our practice areas are on-track to meet their financial targets for 2008. However, some of our practice groups are struggling along with the clients we serve in adversely affected sectors of the economy. Therefore, our decision to postpone by five weeks the start date of our incoming first year associates reflects our firm’s disciplined, fiscally conservative nature, which will help enable the firm to meet our financial objectives and help us to continue to meet our commitments.

Sounds prudent — and the firm may be taking additional steps to deal with the downturn. From a tipster:

Seyfarth Shaw held meetings with its associates last week in all of its offices regarding “firm economics.” They acknowledged that may practice areas are performing above expectations (L&E, commercial lit, employee benefits), but there were others that have seen considerable slowing (construction/real estate). As a result, there have been a few layoffs in these slow areas (word on the street is that they largely came from Boston) and they were pushing the incoming class start date to October. The office managing partners told associates that there were no other layoffs anticipated and overall the firm was “on target” in terms of budget for the year.

We asked the firm about the layoff news as well. The Seyfarth spokesperson declined to comment, except to reiterate that “some of our practice groups are struggling along with the clients we serve in adversely affected sectors of the economy. Firm-wide, most of our practice groups are on-track to meet their financial targets for 2008.”

Hmm… we’ll take that as a “yes.” But we have no details about the alleged layoffs, other than what appears above (slow practice areas, Boston). If you can enlighten us, feel free to email. Thanks.

A quick update on yesterday’s post about Seyfarth Shaw. A source there tells us:

Here are the “official” numbers for Seyfarth NYC and “Others,” excluding Atlanta (no idea where they are — presumably lower). Great for the mid/upper classes, but no so great for 1st-2nd years. Some grumbling also from income partners since they don’t get paid a whole lot more than a senior associate and have to deal with all the administrative headaches associated with income partner status.

For those of you who are interested, the salary ranges appear after the jump.

We’ve confirmed the news, which surfaced previously in the comments, about the pay raise announcement by Seyfarth Shaw. Here’s what one source told us:

The Chicago office had an all-associate meeting [yesterday]. First- and second-year associates will stay lockstep — $145K for first years, $155K for second years — while third- through eighth-years will get “market” base salary ranges. Not clear where anyone will fall in the ranges yet, since we don’t find out until the week of March 3.

The bonus pool remains the same as last year, which means no “extraordinary” bonuses. (But there seems to be room to reward top performers one way or another.)

The managing partner of the office made a crack about sending him anonymous questions by posting them “on Wikipedia,” so perhaps it’s time for a higher profile for you.

Additional information, including ranges for selected classes, after the jump.

The law firm perks keep rolling in. From a source at Seyfarth Shaw:

Following the recent trend of enhanced BigLaw perks, Seyfarth announced changes to their leave policy for associates. Previously, associates were given 4 weeks of vacation per year. Now, associates can now take (at least hypothetically) as much leave as they want so long as they get their work done.

This was a bit of a non-event given that associates can’t even find time to take their original 4 weeks of vacation, but the sentiment was nice anyway.

What Seyfarth associates are really waiting for are the “Associates Meetings” scheduled for this week. Word on the street is that salaries are going up. How much they will go up is the real question.

But don’t get too excited, people — we’re not talking “NY to 190.” Recall that, at least outside New York, Seyfarth is not yet on the $160K scale (at least according to their NALP forms).

The Seyfarth Shaw vacation memo, after the jump.

The law firm of Seyfarth Shaw cordially invites its associates… to toast their own obsolescence. Check out the invite below, for “a cocktail reception to welcome the group of attorneys visiting from Manthan Services in Bangalore, India.”

Our tipster wonders: “Why pay first-years $160,000 a year for legal research (or document review), when you can use a lawyer from India at a fraction of the cost?”

Earlier: Nationwide Worldwide Pay Raise Watch: Mumbai to $8,160?

Sometimes the partners don’t like it if you gorge yourself on “their” candy. But yesterday was different. We hope you had a Happy Halloween!!! (And that you’re not too hungover from last night’s partying.)

How did your firm celebrate this spooky occasion? Seyfarth Shaw went all out:

Halloween treats were served in a mock coffin. The menu included blood-red cupcakes decorated with bleeding fangs and bats to be washed down with Jones soda in limited edition ghoulish flavors (Lemon Drop Dead, Strawberry Slime, and Gruesome Grape).

And you thought paying $145K was scary enough!

Please share amusing Halloween anecdotes — partners in crazy costumes, conference rooms converted into haunted houses, etc. — in the comments. Thanks.

P.S. For your reading pleasure, here’s a Halloween-themed link, from yesterday’s WSJ Law Blog: The Legal Implications of Throwing Eggs. Executive summary: think twice before TP’ing that partner’s mailbox.

Update: The Department of Justice got into the Halloween spirit:

Despite the travails of the Department, our emergency response and preparedness staff are on the job. No, I’m not referring to providing assistance to wildfire-torn California. I’m talking about dressing your children in flame-retardant Halloween costumes and ensuring your home is well lit to ” to prevent injuries to little ghosts and goblins.” Our tax dollars at work! (See email sent out to DOJ employees below.)

The email appears after the jump.

Or maybe it is. From a tipster:

Several offices of Seyfarth Shaw met yesterday and today to discuss the results of the Am-Law Mid-Level Associate Survey, as well as those from an internal survey distributed. [T]he data revealed in these surveys reflected a considerable level of dissatisfaction from associates regarding a variety of areas, and [discussion was held] to cover some of the things the firm is doing to address them (as discussed at the Partners retreat in late September).

When this non-descript “Associates Meeting” was announced last week, most of the associates believed it was to discuss that fact that Seyfarth was finally going to get off ATL’s List of Shame and raise to 160k. However, to our surprise, the whole issue of salaries was completely glanced over. It was merely conveyed that the Compensation Committee was still compiling data regarding recent “market trends in compensation” and would be “meeting” (not necessarily deciding anything) in December.

Seyfarth really continues to amaze….

Okay, so you’re getting below-market pay (except in New York, where associates start at $160K). But look on the bright side — at least your firm makes awesome videos! From an earlier message:

I am not sure how you can get your hands on this, but Seyfarth Shaw did a professional-quality “MTV-Cribs” spoof for the opening of its new Chicago office last fall where Steve Poor (managing partner) walked around in a Hugh Heffner-style smoking jacket showing off the firms new office space. It was clearly a joke (unlike the Nixon Peabody fiasco) and the firm showed it to the new first year associates during first year orientation. However, I would pay money to see that video again….it was hilarious!

If any of you has a copy of said video, or knows how one might be obtained, you know where to reach us.

We have a few associate pay raise developments to report this morning. Some of these items were announced some time ago, but they haven’t written about in these pages until now. Here they are:

1. Arent Fox: The firm now pays a starting salary of $160,000 in New York, D.C., and California, according to the firm website, which a tipster pointed out to us. (But that $20,000 clerkship bonus is pretty chintzy.)

2. Seyfarth Shaw: The firm, which dragged its feet on the last pay raise, has no current plans to raise again. From a Chicago associate:

“Our executive committee recently had a meeting and it was decided that salaries would not be raised to 160K for offices outside of New York. Chicago will continue to be behind market. I’m not so sure about the Boston, D.C. and L.A. offices, but if Chicago is not bumping, those offices are most likely staying behind as well. Maybe you should do one of those Baker & McKenzie and Greenberg Traurig bar charts on Monday morning for Seyfarth Chicago. As much as this firm is trying to be a major Chi-town player, it isn’t paying like one. We are pretty bummed.”

3. LeBoeuf Lamb: The firm has raised to the $160K scale in its Houston office. Memo after the jump.

Hey, guess what? Seyfarth Shaw held some “focus groups” with its associates, and the focus groups told them: WE WANT MORE MONEY!!!

And Seyfarth Shaw, despite prior expressions of reluctance, decided to go along. Their memo, announcing associate pay raises, appears after the jump.