the type of tax advice sold by J&G?
 

Always inspiring confidence.

And the J&G exodus continues
 

What little is left of Dallas IP is about to take a major hit with about 4-6 leaving. Someone turn out the lights please! Houston IP has major defections in the works. Also several Dallas general Lit people in serious discussions.

But then they are all life style choices?

Houston IP
 

two equity and one income shareholder on their way to Baker & McKenzie...

Jenkens IP
 

I think the number, as of latest defections, are about 30 firm wide, with many of those left with resumes on the street. Dallas will have I think 4 or 5 shareholders (although only 2 are real shareholders) with no associates left (are the associates smarter than the partners who remain?)

From the Court House News Service
 

Roger Maxwell v. Jenkens & Gilchrist PC

2/28/2005 3-05-cv-402-B
(Dallas)
Employment discrimination and injunctive actions based on disability. The plaintiff patent attorney was a shareholder in the defendant law firm when he suffered a massive and near deadly cerebellar stroke. After a full year of rehabilitation, he was ready to return to work, but the defendant deems him "totally and permanently disabled." This is in spite of his running the White Rock Marathon last December. Furthermore, the defendant failed to pay the plaintiff's 2003 end-of-year bonus even though it collected millions of dollars in fees based on his patent licensing work that was done before the stroke. The firm had agreed to pay him a defined percentage of the fees in the form of a bonus.

and the hits keep on coming for J&G
 

J&G NY office goes away

Troutman Sanders has hijacked the 91-lawyer New York office of Dallas-based Jenkens & Gilchrist.

"However, differences in firm culture and the economic downturn which the market experienced shortly after the merger, coupled with distractions during the last couple years, did not foster an environment conducive to finding a workable solution,"

and they make the news again!
 

Sued by former shareholder



"Ex-Partner Sues Firm, Seeks Unpaid $1.6 Million Bonus

Former Jenkens & Gilchrist shareholder Roger L. Maxwell filed a suit in federal court on Feb. 28 alleging the firm acted unlawfully when terminating him in 2004 on the ground he was "totally and permanently disabled."

Maxwell alleges in his original complaint in Roger L. Maxwell v. Jenkens & Gilchrist, filed in the Northern District of Texas, that while he suffered a stroke in March 2003 "that almost took his life," he recovered and was preparing to return to work when the firm terminated him in April 2004. In the complaint, Maxwell asks to be reinstated to his position as a shareholder in Jenkens and asks to be awarded his full back pay, including his 2003 year-end bonus. "

Lets see they have had a pregnancy discrimination case now a handicap discrimination case and if I recall a few years ago a sex case- a trifecta!

Seriously is this a firm you would have do your labor cases for you?

possible criminal investigation for tax matters?
 

Forbes article

"The government got the names through summonses issued to firms allegedly involved in Son of Boss promotion, including KPMG, Ernst & Young, Jenkens & Gilchrist and Sidley, Austin, Brown & Wood. "Son of Boss was not something people cooked up in a how-to book in their backyards," Everson said. "This is something that was done by very sophisticated promoters.''

A federal grand jury in the Southern District of New York is also looking into possible criminal charges related to the promotion of Son of Boss. ":(

NY Law Journal article
 

In the catagory of almost old news

NY Law Journal is reporting

about the Houston and Dallas IP defections- This really is somewhat old news.

I am waiting on the formal anouncment of the litigation group that is in final talks.

Support staff layoffs
 

There was a one round in the last week or so (mostly their "national" staff) with supposedly another round for Dallas people coming shortly. If you want to see something sad sort J&G list and see that the firm is now more shareholders than associates (although a large number of the shareholders are non-equity shareholders). In the Dallas IP section, there are no associates only shareholders (although 60% are non-equity). Even getting a law student to interview with J&G now must be difficult. It is sad that a "big law" (now big flaw) firm has sunk so fast. The levarge ratio is now upside down. The legacy of some of the Durbin et al decisions have come home to roost.

Even when you bump up the summer salary
 

, allow them to have multiple sessions- you still can't recruit as well-

Law.com article


"Dallas-based Jenkens & Gilchrist is also employing fewer summer associates in 2005 than last year. The 288-attorney firm reports hiring 22 summer associates, down from the 43 hired for the 2004 summer.

Jenkens has suffered as a result of troubles in its tax-shelter practice, and, in March, 91 of its attorneys in New York decided to open a New York office for Atlanta-based Troutman Sanders. Just over a year ago, the firm had 444 lawyers. Over the past year, its headcount has decreased by 156 lawyers. "

I am surprised that they were even able to get the 22 and that is with paying over market rates.

Tax fall out-
 

Which firms could this be in response to?

or to use a line "What you talkin about Willis?"

The end may be near?
 

J&G is moving out of a large part of its Dallas digs in the next few weeks to consolodate space. They have sublet or let go all of the 36th floor where they speant a whole bunch on high density files for IP. One of the last remaining large IP clients pulled all their work a month or two ago and asked for all the files back. This is rare in patent prosecution in that even if you don't give new work a client generally leaves the existing work with an outside firm in that the upfront cost in the preperation would then be essentially lost as a new firm (or inside counsel) has to relearn what was intent of filings.

The koolaid given to people is that it is just life style choices, no problem from the tax or just a few disgruntled people who have left.

Any bets on if J&G even makes AMLAW 100 next month?

Any bets on if J&G even makes AMLAW 100 next month?

No bet, it is a sucker bet with size drop and client loss.

the former NY office of J&G
 

From source inside the now Troutman offices, business could not be better without the J&G tax stigma hanging over them. Supposedly they are on a size upswing now the J&G brand is gone.

The hope by one that made the move is that they can get far enough away from the issues of J&G so that any personal liability that might attach (and they are still more than a bit worried about that) will be done with.