Negotiation Exercise: Elle Woods

Elle Woods is a third-year associate at the Boston law firm of Crane, Poole, and Schmidt. She is interested in moving to Birmingham, Alabama, where her college sweetheart now resides. As he is the only reason that she would ever agree to move to Alabama, she is not willing to make the move without certain guarantees. She has retained you, a friend of a friend, to represent her in negotiations with a prestigious Birmingham firm, Bandini, Lambert & Locke.

Ms. Woods has received strong signals that an offer will be forthcoming from Bandini, but has requested that you negotiate the terms of her employment, as she does not want to have to play hardball with her future colleagues. Ms. Woods currently makes $200,000. She is a civil litigator and has billed an average of 2300 hours per year in her three years in Boston. She has taken and defended numerous depositions, but has never appeared in open court, much less argued a motion or tried a case. She also has experience drafting legal research memoranda and summarizing depositions, but has never drafted motions or pleadings.

Ms. Woods graduated from Boston University Law School (3.1 GPA), where she was a member of the moot court board. She is a member of the Massachusetts Bar.

Ms. Woods thinks that her big city law practice experience is valuable, particularly compared with the entry-level candidates that Bandini usually hires. She recognizes that she will have to take a significant pay cut, but wants to come out ahead of the difference in cost of living. As she still has $60,000 in student loans, Ms. Woods is unwilling to make less than $120,000 a year. In addition, as Ms. Woods suspects that she will soon be engaged, she wants to make sure that her hours are more reasonable than in Boston. Under no circumstances will she accept a position where she is required to work more than 2200 hours total a year (including both billable and pro bono work).

Three other issues are particularly important to Ms. Woods. First, she wants to receive four years credit toward the seven-year partnership track at Bandini. As Crane, Poole & Schmidt only has a six-year partnership track, Ms. Woods does not want to lose ground by changing firms. Under no circumstances will Ms. Woods accept less than three years of credit toward the Bandini partnership.

Second, Ms. Woods, while recognizing that Bandini does not have the Fortune 100 companies she is used to working for as clients, still wants to make sure that her practice is primarily civil litigation. Bandini has a large criminal pro bono practice and has a reputation of requiring its associates to take multiple criminal cases on top of their required billable hour requirement. Ms. Woods has no desire to do criminal work, or work for free. She is a team player, but will not agree to do no more than 50 hours a year on criminal cases without other concessions on salary and hours from Bandini.

Finally, Ms. Woods does not travel light, and it will be a pain to move her wardrobe (and many pink accessories) from Boston to Birmingham. She would like the firm to pay $10,000 to cover her moving expenses if possible.

Hopefully you can reach a deal with Bandini as to the following 5 parameters:

1. Salary:

2. Required Billable Hours:

3. Required Pro Bono Hours:

4. Years Left to Become Partner:

5. Moving expenses:

I'UHUUGIIUII EAUI blav. Dal lull II Elle Woods is a third-year associate at the prestigious Boston law rm of Crane, Poole, and Schmidt. She is interested in making a lateral move to your rm, Bandini, Lambert & Locke, located in Birmingham, Alabama. Most of Bandini's attorneys are from the state of Alabama, and almost all attended one of the following law schools: Vanderbilt, Alabama, or Mississippi. Bandini really wants Ms. Woods to join the rm, and has given Ms. Woods strong signals that an offer will be forthcoming. On the other hand, Bandini has limits as to what it can offer Ms. Woods. The managing partner has asked you to negotiate the terms of her employment with her representative. Third year associates at Bandini currently make $120,000. This salary is based on a minimum of 2000 billable hours a year. For laterals, however, your rm is prepared to go slightly higher. This decision is based on the trial experience that the lateral has as a litigator, the quality of the lateral's educational credentials, and the likelihood of the lateral staying long term in Alabama. Given the current economic climate, the maximum amount that the firm will pay as a base salary for a third-year associate for 2000 hours is $140,000, but it would prefer to pay less. It is possible to go higher than $140,000, but to do so, Bandini will have to raise the required billable hour requirement. For every 100 hours beyond 2000, the firm will pay associates no more than an additional $20,000. Bandini associates bill, on average, 2000 hours a year. The rm also requires that each associate spend at least 100 additional, non-billable hours on pro bono criminal cases, as the rm's excellent reputation stems in part from its criminal work. The 100+ hours do not count toward the associate's billable hour requirement, as they are not billed out. Although this is a requirement, the rm has, on occasion, made exceptions in rare circumstances. This pro bono practice is likely to continue as Bandini's top criminal lawyer, Mitch McDeere, will be leaving the rm later this year, and associates will need to do more pro bono work. Also, Bandini typically gives partnership credit for lateral associates based on the number of years that they have practiced. Bandini has a seven-year track, meaning one has to work for 7 years to become a partner. Finally, given the economic climate, Bandini is willing to pay moving expenses, bar expenses, and other incidentals up to $5,000. Hopefully you can reach a deal with Ms. Woods as to the following 5 parameters: 1. Salary: 2. Required Billable Hours: 3 Rnnuirnd Drn Rnnn l-lnnrg