• Home
  • News
  • Arent Fox Revokes Offers to 12 Incoming 1st-Years, Will Pay $20K

Law Practice

Arent Fox Revokes Offers to 12 Incoming 1st-Years, Will Pay $20K

Posted Sep 24, 2009 12:59 PM CST
By Martha Neil

Updated: As some observers wonder why other law firms dealing with an oversupply of new attorneys in a struggling economy aren't considering a similar move, Arent Fox has confirmed that it is revoking offers to what the law firm describes as "some—not all" members of its incoming class of first-year associates.

They will be paid $20,000. "The firm sincerely regrets having to make this decision. The firm does believe however that the approach it has taken today is better than indefinite postponement of an associate’s projected start date," says Arent Fox in a written statement provided to Above the Law.

A total of approximately 12 associates got the ax, "about eight" in Washington, D.C., and "between two and three" in New York and one in Los Angeles, the firm's chairman, Marc Fleischaker, tells the National Law Journal.

Arent Fox laid off 13 associates and 15 staffers in March.

Updated on Sept. 25 to include information from subsequent National Law Journal article.

Comments

1.

B. McLeod
Sep 24, 2009 1:06 PM CST

Apparently they missed the happy story about the recessioon being over for law firms and profits recovering.

Flag this comment

2.

LawFirmRealist
Sep 24, 2009 9:02 PM CST

I thought the Fed chief, Bernanke, said the recession was over!  What gives????

Flag this comment

3.

Ooona Youren
Sep 25, 2009 4:53 AM CST

Comment removed by moderator.

Flag this comment

4.

Rob
Sep 25, 2009 5:06 AM CST

@LFR - just in case you are merely uninformed, rather than purposefully misrepresenting things, the end of a recession doesn’t mean life is suddenly hunky dory.  Just means the economy is growing rather than shrinking.  That still leaves you at the bottom of the trough.

Flag this comment

5.

JFK
Sep 25, 2009 7:21 AM CST

Employment is a lagging indicator of economic recovery.

Flag this comment

6.

B. McLeod
Sep 25, 2009 7:31 AM CST

Something about #3 seems hauntingly familiar. . .

Flag this comment

7.

tim
Sep 25, 2009 7:49 AM CST

Law students, this is why you accept every offer you get.  You don’t know which law firm is going to screw you.

Flag this comment

8.

Mike Appleton
Sep 25, 2009 7:53 AM CST

Unless an offer includes a specific term of employment (e.g., one year), the employment is at will. Accordingly, any damages for breach would probably be limited to the amount due for one pay period. Presumably a payment of $20,000.00 for withdrawal of the employment offer would more than compensate the employee for any contract damages. A lawsuit would be a waste of time and money.

Flag this comment

9.

Puss Rider
Sep 25, 2009 7:56 AM CST

Love it. Lawyers getting screwed. Karma..

Flag this comment

10.

Openskies
Sep 25, 2009 8:03 AM CST

While I largely agree with #3 above, I’m not sure how successful such a lawsuit might be.  I’d be most interested in reviewing any document that these new lawyers might be asked to sign in exchange for receiving their $20k checks.  I’d also be concerned that someone in this situation who chooses to sue would damage her/his opportunity to work at other “biglaw” firms.  Of course, if we believe that biglaw is on the way out, then I guess my last point doesn’t matter much…

Flag this comment

11.

Ron Burgundy
Sep 25, 2009 8:17 AM CST

Comment removed by moderator.

Flag this comment

12.

Older Guy
Sep 25, 2009 8:32 AM CST

Meanwhile, the developers of a massive new office building at Connecticut and K (currently just a hole in the ground) are trumpeting Arent Fox as their main tenant. Wonder what the poor saps who got their offers revoked think about that?

Flag this comment

13.

AndytheLawyer
Sep 25, 2009 9:16 AM CST

More damages are possible.  Wouldn’t surprise me if canvassing bitter layoffs from such firms revealed evidence of fraud when the offers were extended.  Also, California’s Labor code allows double damages if in reliance of an employment offer the student moved to California for employment from elsewhere.

Flag this comment

14.

Esq.
Sep 25, 2009 10:43 AM CST

I’m actually not surprised.  The same thing happened in 2001, 2002 and 2003. 

Law firms are having to revamp their business models, reduce the number of incoming associates, and reduce associate salaries.  And while incoming associates are cheaper than exisitng mid-level associates, a business can only afford to lay off so many of it’s seasoned attorneys, while still maintaining enough to do the exisitng work, and train the new class from scratch. 

These folks are still better off than their peers who graduated without offers.  At least they made $40k their 2L summer, got their bar fees paid for, a summer bar stipend, and a $20k parting gift.

Flag this comment

15.

fed up
Sep 26, 2009 7:10 PM CST

RE 7: “You don’t know which law firm is going to screw you.”

Now you know how clients feel. 

priceless.

Flag this comment

16.

James
Sep 26, 2009 9:42 PM CST

Really “fed up” how do the clients feel?

Cause last I checked large businesses are not required to use Big Law for their legal needs.  If they don’t like the prices mayhap they go elsewhere.  Either way, I find it hard to really care that much about the so-called “clients” when they’re throwing lavish executive parties and paying huge bonuses for failure.  At least in big law you only get bonuses when you bill an obscene number of hours, not when you chuck your company in the toilet.

Flag this comment

Add a Comment

We welcome your comments, but please adhere to our comment policy.

Commenting has expired on this post.