I interviewed with a few smaller firms for 1L summer, and I heard "We don't care about grades all that much, we're much more concerned about fit with the firm." Which sucked for me because I probably had better grades than the other people they were interviewing; guess I just wasn't their type (plus, just about every 1L in the city was interviewing for the same jobs). Either way, don't get discouraged about grades if you want to work at a small firm, because as long as you're competent and hard working, grades aren't all that important.
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