THE RHETORIC OF MARGINALIZATION

By now, just about everyone knows about Rush Limbaugh’s vile rant against the third-year Georgetown Law student who had the temerity to speak her mind before Congress. This post isn’t about the subject matter of her testimony. Whether and which employers should provide health insurance plans that include contraception as a preventive care benefit for their employees will remain controversial, even after the U.S. Supreme Court rules on the Patient Protection and Affordable Care Act.

This post isn’t about Rush Limbaugh, either. He is what he is. To some people, he speaks truth in a straightforward, albeit colorful manner. To others, he’s a carnival barker whose hypocritical aim is to rile up 99-percenters in ways that feed his ego and divert attention from his own stunning wealth.

Climate of incivility

Rather, it’s about a climate of incivility that reserves a special rhetorical vitriol for women, especially those like Sandra Fluke. She is smart, articulate, and on the cusp of entering the legal profession from a top law school. Whatever else she learned at Georgetown, it probably didn’t include dealing with public descriptions of her that included words such as “slut” or “prostitute.” Or what to do when someone with a national radio following suggests posting internet videos of her intimate moments “so taxpayers can get their money’s worth.”

Even if he was telling a prolonged off-color joke, Limbaugh’s language was crude. But that’s because it expressed equally crude thoughts. The larger problem is that Limbaugh may have said what many other people — mostly men — were thinking. Any doubters need look no further than Gary McCoy’s cartoon in the March 7 issue of the New York Daily News or other comments throughout the blogosphere echoing support for Limbaugh’s sentiments.

More disturbing is the fact that such attitudes aren’t limited to criticizing women who speak in favor of contraception for health plans. Even conservative columnist Peggy Noonan, who was one of President Reagan’s speechwriters, spoke about the broader issue on the March 11, 2012 episode of “Meet The Press”:

“One of the big problems with discourse in America is the way — forget left and right for a second — it’s the way women are being spoken of. Women in public life. Women in politics. Women and policy questions…Somebody has to stop and notice that this sounds like a horrible, misogynistic war on women. We have got to stop it. I feel like the grown ups have to step in…Left, right and center, it’s getting horrible for women now. Let’s stop it.”

A joke is one thing, but…

Noonan’s complaint goes to the language of marginalization. Relegating another human being to a distasteful subcategory of the species makes evaluating that person on the merits unnecessary. At a minimum, it infects the assessment. As the number of powerful females grows, words of marginalization become interpersonal weapons of mass destruction. Such words are also like cockroaches — for every one that crawls into the public light, a hundred more thrive in darkness.

What’s the relevance to the legal profession? None, some might argue. After all women have risen from a quarter of all law students in 1975 to almost half today. Yet something is amiss. Just look at the dismal representation of women at the top of big law: they comprise only 16 percent of equity partners in firms responding to the latest NALP survey. (Half of all firms refused to respond at all. Draw your own inferences.)

Most of the men running large firms aren’t Limbaughs. In fact, there are many benign reasons for the absence of equity partner gender parity in large firms. But I don’t think those benign reasons are a complete explanation. Drilling down into the growing top-to-bottom compensation gap within equity partnerships would probably reveal another dramatic manifestation of the problem. Whether public or private, the thought is the father to the deed; words of marginalization can bridge the two.

The gender-specific aspect to all of this is both vicious and hypocritical. Would Limbaugh have used such reprehensible language to describe another man? What if, during an interlude between one of his four marriages, he had taken Viagra or Cialis and had a prescription drug benefit that paid for it? What would that make him or any other similarly situated male?

Whatever the answers, I have no desire to watch any of Limbaugh’s videos.

HOWREY’S LESSONS — PART II

I wasn’t going to write another article about Howrey. But then I read chairman Robert Ruyak’s explanations for his firm’s collapse, together with columnist Peggy Noonan’s review of former Defense Secretary Donald Rumsfeld’s new book. The two men have more in common than the first two letters of their last names. Both are at the center of dramatically unfortunate episodes that occurred on their respective watches. Both look for villains and miss the bigger picture.

Former Reagan speechwriter and conservative columnist Noonan opens her review with this: “I found myself flinging his book against the wall in hopes I would break its stupid little spine…You’d expect [Rumsfeld] to be reflective, to be self-questioning, and questioning of others, and to grapple with the ruin…He heard all the conversations. He was in on the decisions. You’d expect him to explain the overall, overarching strategic thinking that guided them. Since those decisions are in the process of turning out badly,…you’d expect him to critique and correct certain mindsets so that [others] will learn.” He doesn’t.

Those words also describe Ruyak’s unsatisfying explanations for Howrey’s failure:

1.  European offices:

“The real problem we ran into in Europe was conflicts of interest…It’s a different analysis in Europe. But we had to apply the U.S. standards across Europe. That made it difficult to grow because we had to forgo a lot of cases…”

Analysis of potential conflicts issues should have anchored any business plan that began with London (2001) and continued with high-powered lateral acquisitions in Brussels (2002), Amsterdam (2003), Paris (2005), Munich (2007), and Madrid (2008). By July 2008, Howrey was Managing Intellectual Property‘s “Top U.S. Firm in Europe” with more than 100 lawyers there and plans for more.

More importantly, firms survive conflicts-related departures. But here, 26 European lawyers (12 partners, 14 associates) in October 2010 supposedly set off a chain reaction that crushed an otherwise healthy, 550-attorney firm that, only a decade earlier, had no European presence.

2.  Document discovery vendors.

“We created a whole portion of the firm to handle [document discovery] efficiently – using staff attorneys and sometimes temporary people, computer systems and facilities.” Along came some companies that were “offering to do this work less expensively at a lower price.”

But in May 2009, Ruyak had attributed part of Howrey’s Am Law 100-leading revenue surge to avoiding “areas that suffered significant downturns,” singling out for praise the firm’s five-year-old document review and electronic discovery center that added $47 million to the top line. So successful was the Falls Church operation that he was considering a second one on the West Coast. (The American Lawyer, May 2009, p.118)

Yet somehow, 75 staff attorneys and 100 temps accounting for 8% of Howrey’s $570 million gross in 2008 became a key contributor to the firm’s demise two years later.

3.  Contingent and alternative fees

“Unlike corporations that operate on an accrual basis, it’s hard to adjust from a cash base on your business to an accrual base where you are deferring significant amounts of revenue into future time periods. Once you make that adjustment, I think it works. But the adjustment period is difficult.”

In other words, partners couldn’t tolerate the deferred gratification associated with contingency fee matters. But they loved the upside. In 2008, Howrey’s average partner profits jumped almost 30% — to $1.3 million. When PPP dropped to $850,000 in 2009, Ruyak said 2008 had been an aberration resulting from $35 million in contingency receipts. (The American Lawyer, May 2010, p. 101)

Perhaps inadvertently, he revealed the real culprit: a revolution of rising expectations among the already rich. Ruyak put it this way: “Partners at major law firms have very little tolerance for change.”

If he’s referring to firms that have lost cohesion and a shared purpose beyond a myopic focus on current profits exceeding the last year’s, he’s right. But that culture exists for a reason. Aggressive lateral growth produces partners who don’t know each other. Firm allegiances become tenuous; the institutions themselves become fragile.

Ruyak’s self-serving explanations avoid accepting personal responsibility, but that’s not their greatest fault. The bigger problem is that other law firm leaders will find false comfort in his litany; it encourages the view that Howrey’s challenges were unique. As I said before, they weren’t.