Benjamin Wilson of Beveridge & Diamond and John Daniels of
Quarles & Brady are two of the three African-American chairmen
of Am Law 200 firms (Maurice Watson of Husch Blackwell is the
third). Wilson and Daniels, who have known each other since they
overlapped at Harvard Law School in the 1970s, sat down with a
few Reuters journalists last week to talk about the African
American Managing Partners Network, a networking group of law
firm leaders that they're championing. Daniels, in particular,
talked about his goal of promoting African Americans as great
lawyers and rainmakers, not as supporting partners. Both he and
Wilson told us that one way to achieve this sort of Diversity
2.0 is to encourage a legal industry version of the National
Football League's "Rooney Rule," in which, beginning in 2003,
the NFL required teams to interview minority candidates for
high-level coaching jobs. Just as the ranks of minority coaches
have increased considerably since the Rooney Rule was
instituted, Wilson and Daniels believe that if general counsel
make an effort to interview black candidates when they're
looking for outside lawyers, African Americans will win those
assignments.
One federal judge in Manhattan has been using the power of
his position to impose a version of the Rooney Rule for the last
several years. Since 2007, when U.S. District Judge Harold Baer
appoints plaintiffs' firms to serve as lead counsel in class
actions in his courtroom, he requires them to include at least
one women and one minority lawyer to staff the case. Baer has
been unapologetic about his motives. In a 2010 interview with
The New York Law Journal, the judge said firms "are behind where
they should be" in promoting diversity. He "saw the counsel
approval process as a tool at his disposal" to address what he
regards as a persistent problem, the Law Journal wrote.
Plaintiffs' firms now expect that they'll have to wear
diversity on their sleeves when they appear before Baer, but
last December the judge's policy came under attack from Ted
Frank of the Center for Class Action Fairness. Frank appealed
Baer's approval of Sirius XM's settlement of an antitrust class
action, arguing (as he usually does) that the only true
beneficiaries of the deal were plaintiffs' lawyers, in this case
Grant & Eisenhofer. Frank also claimed, with amicus support from
The Center for Individual Rights, that Baer violated the due
process and equal protection rights of the class when he imposed
a diversity requirement on the class's lawyers. The class action
gadfly compared Baer's order to excluding jurors from a trial on
the basis of their race. "We have lots of precedent that the
judicial system is supposed to be above this," he told me last
year. "It's counter to what America stands for."
The 2nd Circuit Court of Appeals on Thursday declined to
take up Frank's challenge. In a non-precedential summary order,
Judges Robert Sack, Denny Chin and Raymond Lohier said Baer had
not abused his discretion in approving the Sirius settlement,
which they said was substantively fair, given the class's slim
chance of prevailing at trial and the difficulty of evaluating
the benefit to class members. The appeals court also said Grant
& Eisenhofer's $13 million in fees and expenses was reasonable.
The panel acknowledged Frank's diversity argument, but then
sidestepped it.
Frank's clients, objectors to the settlement, hadn't shown
that the class received inferior representation from Grant &
Eisenhofer, the panel said. So, regardless of Baer's diversity
directive, objectors couldn't point to any injury. As a result,
the appeals court said, Frank's clients didn't have standing to
challenge Baer's class certification order calling on class
counsel to include minority lawyers in staffing the case. The
2nd Circuit didn't even reach Frank's constitutional arguments.
In an interview Friday, Frank said he's considering his
clients' options. He continued to compare Baer's diversity
requirements to the exclusion of minorities from juries, arguing
that both sorts of race-based decisions are unconstitutional.
The 2nd Circuit, he said, wanted to find a way to avoid the
difficult issues his objection raised.
I left a message with Judge Baer's chambers, but didn't hear
back.
(Reporting by Alison Frankel)
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