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This article has been revised to reflect the following correction:
Correction: August 30, 2013
An earlier version of this article included outdated information about the status of New York legislation that would set guidelines for the inheritance rights of posthumously conceived children. The state Senate did not take up the legislation in the most recent session, which ended in June; it is not awaiting Senate action in this session.
This article has been revised to reflect the following correction:
Correction: May 3, 2013
An earlier version of this article and an accompanying picture erroneously identified Prince Alwaleed bin Talal of Saudi Arabia as the owner of BDL Gulf. Representatives of Prince Alwaleed said that neither he nor his senior advisers are aware of any connection between the prince and BDL Gulf.
For more than a decade, the provenance of white-collar defense work has been shifting away from boutiques to large corporate firms that have wooed prominent former prosecutors and built strong white-collar practices.
Nevertheless, boutiques continue to form, prompting many in the defense bar to ask whether there's enough white-collar work to go around.
In interviews with the New York Law Journal, a few white-collar defense lawyers said they felt the field was getting crowded, but others said there is a role for boutiques that find a niche and develop an expertise.
"There are many more fish chasing the same business," said Gordon Mehler, who started his own firm in 2000. While he said he thought older, established lawyers like himself would survive, younger lawyers entering the field in boutiques "will have a rough time."
There are more small firms focused on white-collar practice than there were five years ago, Mehler said. "The dynamics have dramatically changed" among the boutiques, he added.
One partner at a white-collar boutique who did not want to be identified said that "the practice area now feels to me very crowded and it seems unlikely that there's enough work to go around."
"As work has slowed down for big firms, you see more lawyers at top firms competing with boutiques to represent individuals," the partner said. "For the people who want to get into it, it's a tough market to crack."
Others are more optimistic.
"You don't need to do any more than open the newspaper and see that there's another investigation," said Steven Molo, a partner of boutique MoloLamken. "The opportunities have increased for boutiques in several ways."
Increased government enforcement and regulation have propelled the growth of the white-collar practice. In just one example, the Securities and Exchange Commission said that in fiscal year 2012 it filed 734 enforcement actions, including those against insider trading, broker-dealers, delinquent filings and other actions, just one shy of the record in 2011. The government said the last two years reflect the highest numbers of total actions brought by the SEC.
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For more than a decade, the provenance of white-collar defense work has been shifting away from boutiques to large corporate firms that have wooed prominent former prosecutors and built strong white-collar practices.
Nevertheless, boutiques continue to form, prompting many in the defense bar to ask whether there's enough white-collar work to go around.
In interviews with the New York Law Journal, a few white-collar defense lawyers said they felt the field was getting crowded, but others said there is a role for boutiques that find a niche and develop an expertise.
"There are many more fish chasing the same business," said Gordon Mehler, who started his own firm in 2000. While he said he thought older, established lawyers like himself would survive, younger lawyers entering the field in boutiques "will have a rough time."
There are more small firms focused on white-collar practice than there were five years ago, Mehler said. "The dynamics have dramatically changed" among the boutiques, he added.
One partner at a white-collar boutique who did not want to be identified said that "the practice area now feels to me very crowded and it seems unlikely that there's enough work to go around."
"As work has slowed down for big firms, you see more lawyers at top firms competing with boutiques to represent individuals," the partner said. "For the people who want to get into it, it's a tough market to crack."
Others are more optimistic.
"You don't need to do any more than open the newspaper and see that there's another investigation," said Steven Molo, a partner of boutique MoloLamken. "The opportunities have increased for boutiques in several ways."
Increased government enforcement and regulation have propelled the growth of the white-collar practice. In just one example, the Securities and Exchange Commission said that in fiscal year 2012 it filed 734 enforcement actions, including those against insider trading, broker-dealers, delinquent filings and other actions, just one shy of the record in 2011. The government said the last two years reflect the highest numbers of total actions brought by the SEC.
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You must be signed in to comment on an articleSign In or Subscribe
Korean-American Bar Association members include, clockwise from lower left: Sara Hamilton, Alex Shin, Steve Park and June Towery. In a sign that Atlanta's Korean-American legal community is gaining critical mass, a group of lawyers of Korean descent has launched the Korean-American Bar Association of Georgia.
One impetus for forming the new bar association is to mentor younger lawyers, said Jeong-Hwa Lee "June" Towery, a partner at Nelson Mullins Riley & Scarborough, who helped organize the group.
"For a few years I have been wanting to put the Korean-descent attorneys together for mutual support, information exchange and networking," said Towery, who is KABA Georgia's president.
"The main thing is the mentoring," she added. "Typically these are the first attorneys from their families and they don't have the exposure to lawyers. They can have a hard time adjusting to the big firm environment."
Towery said about 45 lawyers and law students came to KABA Georgia's first meeting in late August. About half the lawyers who attended were small practitioners serving Korean individuals, she said, and the other half work for corporate firms.
"The response was incredible," she said, noting that a lot of law students attended, including some who had driven to Atlanta from the University of Georgia in Athens.
Towery estimated that there are more than 100 lawyers and law students of Korean descent in the Atlanta area, with about 50 Korean lawyers in Gwinnett, where there is a large Koreatown, and another 30 or more in corporate Atlanta firms.
"There is a general feeling of trying to help people out," said Han Choi, a partner at Ballard Spahr, who is the new group's vice president. "We're trying to make sure younger Korean-American lawyers get some opportunities to meet people."
He and Towery said major U.S. cities such as Los Angeles, New York, Washington and Chicago already have KABAs.
In Atlanta, the Georgia Asian-Pacific American Bar Association has been around since 1992, but until now there has been no bar association specifically focused on the growing Korean legal community.
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Call it a sign of the times. In May the Spanish government announced the results of its beauty contest for legal work on a €35 billion emergency fund designed to reduce regional government debt. Bidders for the work, which involved setting up the legal framework for the banks to disperse the funds to unpaid suppliers, included Spain's three largest firms --Cuatrecasas, Goncalves Pereira; Garrigues; and Uria Menendez -- and at least one Magic Circle firm, Clifford Chance. While it wasn't surprising that Cuatrecasas, one of the oldest operating law firms in the Iberian market, ended up winning the work, what is shocking is the firm's suggested fee: €1.
That wasn't a fluke. Uria Menendez also volunteered to do the work for €1, and Garrigues and Clifford Chance offered reduced fees in an effort to land the prestigious assignment, which could lead to more work from the Spanish government. "Given the economic situation, we felt it was the right thing to do as a service to the government," says Cuatrecasas corporate partner Federico Roig. (Uria declined to comment. Garrigues and Clifford Chance confirmed that they offered a reduced fee, but say that it was a reasonable one.)
The economic crisis in Spain is now in its fifth year and shows little sign of abating soon. The country's banking system, which accounts for 20 percent of Spain's $1.49 trillion GDP, is on the brink of insolvency and will require up to a €100 billion ($123 billion) bailout from the European Union. And in order to comply with the E.U.'s conditions for the bailout funds, in July Spanish prime minister Mariano Rajoy proposed an austerity plan that would raise the Value Added Tax (VAT) on goods and services by 3 percent -- increasing it to 21 percent -- while also cutting unemployment benefits and reducing civil servants' pay. Although the Spanish government clearly needed to take action to reduce the country's deficit, the measures could stifle consumer spending and thus deepen the recession.
The prolonged downturn has affected law firms in the Iberian market, particularly those whose client base is primarily comprised of large Spanish companies. Although there's been an uptick in labor, tax, litigation and insolvency work in Spain and Portugal, financing and mergers and acquisition work has slowed dramatically.
At the three biggest Spanish firms, revenues from 2010 to 2011 increased only incrementally. Garrigues, the largest of the triumvirate, posted revenue of €355 million ($495 million) last year, up just 1 percent from 2010. Cuatrecasas' revenue saw a meager 0.4 percent increase during the same time period, with revenue of €241.7 million ($321 million) in 2010 and €242.6 million ($338 million) in 2011. And Uria Menendez reported a 1.5 percent increase last year, with revenue of €188 million ($262 million).
This year, things are looking even bleaker. Garrigues, the only firm in the region whose fiscal year ends on August 31, expects that its revenue will be down 2 percent to 3 percent for 2012. Global firms that work in the region, such as Freshfields Bruckhaus Deringer, Baker & McKenzie, Clifford Chance, and Jones Day, have been affected as well. While none of these firms disclose revenue figures for Spain, lawyers at the firms nonetheless admit that the crisis has affected their practice in the region.
In order to compensate for the loss of revenues from lucrative practice areas like M&A, firms have had to make critical changes: reducing operating costs, more actively managing their lawyers' practices, restructuring compensation plans, and -- in some cases -- reducing their head counts. "We increased our numbers [between 2000 and 2008] because the economy was booming and we thought it would continue," says Garrigues managing partner Fernando Vives. "So now we've had to reduce and adapt our workforce."
Although the 10 lawyers interviewed for this article were publicly stoic about Spain's economic crisis, in private conversations they were clearly worried about the effects of a continued downturn on their firms and their country. Nearly all expressed hope that the economy had bottomed out and would begin to turn around this fall. "We are facing the crisis more optimistically now, but not naively so," says Freshfields' managing partner for Spain, Inaki Gabilondo.
From the late 1990s until 2007, Spain had the fastest-growing economy in the European Union. The country experienced a decadelong real estate boom; at its peak in 2007, construction accounted for 16 percent of the GDP. The thriving real estate market, coupled with a high volume of leveraged buyout and M&A deals, attracted U.S. and U.K. law firms to the region, and spurred the growth of domestic firms within Spain and abroad. Spanish M&A activity more than doubled from 2003 to 2007, and the value of the deals peaked at $194 billion in 2007. But then came the downturn, fueled by the collapse of the real estate market in 2008, which in turn resulted in the crash of the cajas, the small Spanish savings banks that were heavy on home mortgages and have little access to capital since they aren't publicly traded.
The majority of the 45 cajas were forced to merge -- there are now just 14 -- and this helped generate enough work for big firms in Spain to weather the recession. But that work is drying up, and over the past five years M&A activity has declined steeply. "It's not a good time for corporate transactions. There aren't any takeovers or acquisitions," says Jose Maria Alonso, the head of Baker & McKenzie's dispute resolution team in Madrid and the former managing partner at Garrigues. Alonso cites two large deals that have been put on hold because of the crisis: the privatization of Spanish airport operator Aeropuertos Espanoles y Navegacion Aerea (AENA), and the initial public offering of lottery operator Loterias y Apuestas del Estado (LAE), which would have been the largest IPO in Spanish history.
Call it a sign of the times. In May the Spanish government announced the results of its beauty contest for legal work on a €35 billion emergency fund designed to reduce regional government debt. Bidders for the work, which involved setting up the legal framework for the banks to disperse the funds to unpaid suppliers, included Spain's three largest firms --Cuatrecasas, Goncalves Pereira; Garrigues; and Uria Menendez -- and at least one Magic Circle firm, Clifford Chance. While it wasn't surprising that Cuatrecasas, one of the oldest operating law firms in the Iberian market, ended up winning the work, what is shocking is the firm's suggested fee: €1.
That wasn't a fluke. Uria Menendez also volunteered to do the work for €1, and Garrigues and Clifford Chance offered reduced fees in an effort to land the prestigious assignment, which could lead to more work from the Spanish government. "Given the economic situation, we felt it was the right thing to do as a service to the government," says Cuatrecasas corporate partner Federico Roig. (Uria declined to comment. Garrigues and Clifford Chance confirmed that they offered a reduced fee, but say that it was a reasonable one.)
The economic crisis in Spain is now in its fifth year and shows little sign of abating soon. The country's banking system, which accounts for 20 percent of Spain's $1.49 trillion GDP, is on the brink of insolvency and will require up to a €100 billion ($123 billion) bailout from the European Union. And in order to comply with the E.U.'s conditions for the bailout funds, in July Spanish prime minister Mariano Rajoy proposed an austerity plan that would raise the Value Added Tax (VAT) on goods and services by 3 percent -- increasing it to 21 percent -- while also cutting unemployment benefits and reducing civil servants' pay. Although the Spanish government clearly needed to take action to reduce the country's deficit, the measures could stifle consumer spending and thus deepen the recession.
The prolonged downturn has affected law firms in the Iberian market, particularly those whose client base is primarily comprised of large Spanish companies. Although there's been an uptick in labor, tax, litigation and insolvency work in Spain and Portugal, financing and mergers and acquisition work has slowed dramatically.
At the three biggest Spanish firms, revenues from 2010 to 2011 increased only incrementally. Garrigues, the largest of the triumvirate, posted revenue of €355 million ($495 million) last year, up just 1 percent from 2010. Cuatrecasas' revenue saw a meager 0.4 percent increase during the same time period, with revenue of €241.7 million ($321 million) in 2010 and €242.6 million ($338 million) in 2011. And Uria Menendez reported a 1.5 percent increase last year, with revenue of €188 million ($262 million).
This year, things are looking even bleaker. Garrigues, the only firm in the region whose fiscal year ends on August 31, expects that its revenue will be down 2 percent to 3 percent for 2012. Global firms that work in the region, such as Freshfields Bruckhaus Deringer, Baker & McKenzie, Clifford Chance, and Jones Day, have been affected as well. While none of these firms disclose revenue figures for Spain, lawyers at the firms nonetheless admit that the crisis has affected their practice in the region.
In order to compensate for the loss of revenues from lucrative practice areas like M&A, firms have had to make critical changes: reducing operating costs, more actively managing their lawyers' practices, restructuring compensation plans, and -- in some cases -- reducing their head counts. "We increased our numbers [between 2000 and 2008] because the economy was booming and we thought it would continue," says Garrigues managing partner Fernando Vives. "So now we've had to reduce and adapt our workforce."
Although the 10 lawyers interviewed for this article were publicly stoic about Spain's economic crisis, in private conversations they were clearly worried about the effects of a continued downturn on their firms and their country. Nearly all expressed hope that the economy had bottomed out and would begin to turn around this fall. "We are facing the crisis more optimistically now, but not naively so," says Freshfields' managing partner for Spain, Inaki Gabilondo.
From the late 1990s until 2007, Spain had the fastest-growing economy in the European Union. The country experienced a decadelong real estate boom; at its peak in 2007, construction accounted for 16 percent of the GDP. The thriving real estate market, coupled with a high volume of leveraged buyout and M&A deals, attracted U.S. and U.K. law firms to the region, and spurred the growth of domestic firms within Spain and abroad. Spanish M&A activity more than doubled from 2003 to 2007, and the value of the deals peaked at $194 billion in 2007. But then came the downturn, fueled by the collapse of the real estate market in 2008, which in turn resulted in the crash of the cajas, the small Spanish savings banks that were heavy on home mortgages and have little access to capital since they aren't publicly traded.
The majority of the 45 cajas were forced to merge -- there are now just 14 -- and this helped generate enough work for big firms in Spain to weather the recession. But that work is drying up, and over the past five years M&A activity has declined steeply. "It's not a good time for corporate transactions. There aren't any takeovers or acquisitions," says Jose Maria Alonso, the head of Baker & McKenzie's dispute resolution team in Madrid and the former managing partner at Garrigues. Alonso cites two large deals that have been put on hold because of the crisis: the privatization of Spanish airport operator Aeropuertos Espanoles y Navegacion Aerea (AENA), and the initial public offering of lottery operator Loterias y Apuestas del Estado (LAE), which would have been the largest IPO in Spanish history.