Lawyers Who Never Have Known a Down Market - Now, the Return of "DefLand"

 Current junior associates in large law firms have no memory of a down market. All they have known is a recovery that kept picking up steam, then a COVID boom. All that brought first-year salaries to $215,000 a year.

Now, even before they start their jobs young lawyers are experiencing the harsh impact of reduced demand for a law firm's services. During the 2008 - 2009 global downturn that phenomenon was labeled "DefLand." And, now Abovethelaw confirms the rumor on professional networks that law firm Gunderson Dettmer has put in play DefLand. 

As ATL reports, the original start date of October 31, 2022 has been pushed to January 17, 2023. But there is no guarantee that date will be observed. If what the firm describes as the signifcant slowdown in demand persists or worsens, there could be more delay. The scary scenario, though, as in 2008 -2009, is that after the delays the offer could be snatched back. When that had happened new law graduates were stranded. Essentially the market had collapsed for inexerperienced lawyers. They became a Lost Generation. As the market recovered many couldn't get back in.

For now, a monthly stipend of $6,000 will be provided, but no health insurance. If the delay goes on one wonders if the stipend will also.

Meanwhile, though, some practices in some law firms continue to be very busy. Big Law is no longer a monolith. Generalizations aren't possible. Also with the expanding number of litigation and transactional pratices the lawyers in one department may be in demand and in another the lawyers will have few or no assignments. 

Currently in this uncertain economy lawyers in a department such as restructuring might be sitting pretty and those in M&A in some law firms scared. About the latter - that is, dealmaking - Paul Weiss might be in a position of strength. A long-term client Apollo is rebranding beyond private equity to other niches through extensive and ongoing M&A. As I cover in this article that has been a source of steady dealmaking business for Paul Weiss' M&A practices. During the 2008 - 2009, that firm didn't conduct a Reduction-in-Force.

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