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The G-Man a Week in the Life of a $1,000-Per-Hour Lawyer

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The G-Man a Week in the Life of a $1,000-Per-Hour Lawyer The G-Man A week in the life of a $1,000-per-hour lawyer TO: ALLEN PUSEY, managing editor fasts back at the Regency. (Mobil Travel Guide description: “Home of the original FROM: TERRY CARTER, senior writer power breakfast, where deals are sealed and fortunes are made.”) SUBJECT: Story pitch on $1,000-an-hour Since planting the Susman Godfrey flag in lawyer NYC a year earlier, Susman has been power- breakfasting, power-lunching and powering You asked me to look into doing a story on whatever else to get work from big New York Houston litigator Stephen Susman as an ex- law firms. He tells them he’s not out to steal ample of the new breed of $1,000-an-hour clients. His firm has some specialties and lawyers. some special ways of billing for them, and he It’s complicated. Seems he’s part of a breed pushes single-case litigations referred when all right. But it’s a breed of one. firms are conflicted and such. Billables account for less than 20 percent Says Susman: “I tell them we only do liti- of his work. He actually bills a bit more— gation for their clients as one-night stands, or $1,100. And he prefers making a lot more for like a heart surgeon. We’re not needed himself by taking on some of the risk with again.” other fee arrangements. The selling point is After the morning routine, he hoofs it to that clients will come out better, too. the office on Madison Ave. at 60th. The On a random week we chose in November views from the newly built-out offices—the (see attached), Susman showed me that he firm recently moved to double its space to billed 11.5 hours at that $1,100-an-hour rate 7,500 square feet—are OK, not spectacular. of his, though he wouldn’t say what matter(s) Unless you care that you’re next door to or which client(s) were involved. But he Calvin Klein’s flagship store and across from seemed pretty surprised to discover when he the upscale Barneys. looked a little deeper into his spreadsheets The offices themselves are nicely done, that in 2007, he had billed at hourly rates for though without the effort some firms go to for a higher percentage of his time than usual. an exalted aura of greatness. These folks are The Susman Godfrey firm opened an out- all about trying high-stakes commercial law- post in New York City a little over a year ago. suits. Nearly half the year he and his wife, Ellen, live in the Regency Hotel on tree-lined Park He’s a Avenue, just a block and a half from work. first-rate hustler. Each morning Susman either works out for Susman and his firm make for an amazing an hour or heads to nearby Central Park, story: him the wild man, the counterintuitive where he walks his two Cavalier King Charles business model, the high-stakes cases. There Spaniels, a toy breed that belies the nature of is no firm like it. this particular owner. “I’m hustling New York City’s big firms,” And most mornings he has business break- says Susman. “And they’re listening.” Continued on page 42 Reprinted with permission ABA JOURNAL, February 2008 stock photographs: istock; logos courtesy of websites; personal photos courtesy of stephen susman MONDAY TUESDAY WEDNESDAY 6 a.m.- 7 a.m. 6 a.m.-7 a.m. 6 a.m.-7 a.m. Workout in Regency Walk the dogs in Central Park. Aerobics workout. Hotel gym with trainer. 8 a.m.-9:15 a.m. 10 a.m. Breakfast at the home of George Soros Call ABA Journal reporter. with about 30 others, including 9 a.m. Democratic National Committee Chairman Meeting with Canadian lawyer Harry Howard Dean. The purpose: “Trying to 11 a.m. Bloomfield, former president, take back our country,” says Susman. Conference call in price-fixing class Canadian branch of the International action against Ready-Mix Concrete in Law Association. federal court in Indianapolis. Susman Re: Potential case on 9 a.m. is co-lead counsel. (At any given behalf of an investor From Soros’ house, a confer- time he’s involved in about 12 cas- in India. ence call to Susman’s NY office es.) In re Ready-Mix Concrete for regular weekly meeting with Antitrust Litigation, No. 1:05-cv- the lawyers. 00979-SEB-VSS (Southern District of 10:30 a.m. Indiana, Indianapolis Division). Conference call with 9:30 a.m. some members of Telephone call with Sallie Mae’s gener- 11:30 a.m. Susman’s law firm. al counsel concerning the breakup-fee Conference call concerning a patent- litigation. infringement case. (It went to trial in early December.) Susman represents Sky Technologies of Melbourne, 11 a.m. 10 a.m. Australia, which claims $40 million Meeting in Susman’s office with some- Conference call in a patent infringement in damages (asking they be trebled), one trying to sell him (for a change) case concerning a medical device against Ariba Inc. of Sunnyvale, a litigation services consultant. (stent). Susman represents the plaintiff Calif. It concerns online negotiation in Wall Cardiovascular Technologies v. technology. (Two partners and one as- Boston Scientific, No.2:2007-cv-00504 sociate from the Houston office (Eastern District of Texas). joined Susman in Boston for the tri- 1 p.m. al.) Sky Technologies v. Ariba Inc., Travel by train to Wilmington, Del., No. 1:06-cv-11889-WGY (District of for hearing in the Sallie Mae matter. 11 a.m. Massachusetts). Susman represents the student-loan Conference call for the NYC-based giant (SLM Corp.), which is trying to Foundation for Jewish Culture. Susman get a $900 million breakup fee from is on its executive committee and is several companies that backed out of vice chair. 12:30 p.m. a takeover agreement. SLM Corp. v. Lunch with Tom Janover, partner with J.C. Flowers, No. 3279-VCS (Delaware Kramer Levin. Janover specializes in Chancery Court). 12:30 p.m. distress investing matters: the pur- Lunch pitching Robert Goodkind of Pryor chase and sale of securities and Cashman at the Sidecar, the more ele- claims of companies in restructuring gant upstairs sister of P.J. Clarke’s, or bankruptcy. “I know these people,” the late-night draw for famous folks Susman says of his hustling for work. seeking a famously great hamburger. “I’m not doing cold calls.” They eat at Aquavit, a Scandinavian restau- 3 p.m. 3 p.m. rant. It rates four stars from New Conference call during a hearing Conference call with a York magazine. It also gets $$$$. break regarding two patent cases group of the firm’s law- Susman’s client, MicroUnity Systems yers to do root-and-branch Engineering Inc. of Santa Clara, review of their ongoing Calif., brought against Sony and AMD cases, from meeting deadlines to the in the Eastern District of Texas likelihood of winning. Susman and four 1:30 p.m. federal court. Both soon settled. other partners conduct these reviews on Conference call concerning a patent MicroUnity v. Sony Corp. of America a rotating basis. These often last a infringement case, Peter Sklar v. Inc., No. 2:05-cv-00505- couple of hours. “Mechanisms to make Microsoft, No. 206-cv- TJW. MicroUnity v. sure nothing falls between the cracks,” 7 (Eastern District of Advanced Micro Devices Susman says. Texas). Susman’s Inc., 2:06-cv-00486-TJW. client, Sklar, claims Microsoft ap- propriated his improved method for 4 p.m. database searches. (The case would Conference call in a breach of contract settle in early December.) 4:15 p.m.- 5:45 p.m. case Susman’s client brought in state Train back to NYC. court in Houston. Northville Product Services v. Green Earth Fuels, No. 2:30 p.m. 2007-45993 (11th Judicial Conference call concerning a Susman District Court, Harris client’s patent infringement case County, Texas). over computer networking software. Droplets Inc. v. Adobe Systems, No. 2:2006-cv-00307 (Eastern District 5 p.m. of Texas). 6:15 p.m.- 7:15 p.m. Telephone call with Susman’s client who Weekly conference is in arbitration in Connecticut in a 3 p.m. call among Susman claim against his former law firm— Conference call. Susman represents Godfrey’s nine-part- breach of partnership agreement. Platform Solutions, which developed a ner executive commit- way to use an IBM operating system on tee. a Hewlett-Packard mainframe. IBM sued and stopped licensing its OS for use 7 p.m.- 8:30 p.m. on non-IBM hardware. Susman’s client A reception at the firm’s NYC turned that into an antitrust claim 6:30 p.m.- 8:45 p.m. office for alumni of the University of against IBM. International Business Dinner at a benefit honoring a Houston Law Center. This is a favor for Machines Corp. v. Platform Solutions friend of Susman’s involved with Ray Nimmer, the law Inc., No. 06-cv-13565 (Southern the Aperture Foundation, an organiza- school dean. Two of the District of New York, tion that promotes fine-art photogra- three SG partners who White Plains). phy. Event is at the Skylight, 275 attended there come for Hudson, an 18,000-square-foot gallery the reception. space for special events. 4 p.m. Phone call with Joel Samuels, bank- ruptcy lawyer in Sidley Austin’s Los 8:30 p.m.- 9:30 p.m. Angeles office. He was possibly send- Dinner with Nimmer at the Post House, ing a matter to Susman, but it didn’t part of a restaurant group anchored by work out.
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