Arter & Hadden
 

Old news on the FB and Ohio board, but in case you missed it:

fuckedcompany.com reports a rumor that Arter & Hadden will dissolve in two weeks, without severance for anyone.

This article is a more polished look at the firm's problems. According to it, their SF office is down from 25 lawyers a few years ago to 13 now.

Fenwick Article
 

edited to now say:

Articles from the Recorder have been posted here (and on the infirm site) for years, to no complaints that I know of, and presumably with the notice of the reporters who apparently troll this site for leads. I checked with leagl, who doesn't mind if y'all post full articles from time to time, but only when you feel it is necessary. Also, understand that if the company in question complains, we will have to remove and or edit it as needed. We don't want to violate copyright law, but will leave it up to your judgment.

Fenwick Article
 

... at least not reproducing it here, yes.

It would be hard to fit the square peg of "fair use(s)" of educational uses, etc., with the round hole of an internet chat board such as this.

The practical viability use of this (extensively or completely quoting articles) will turn on the publication's outlook on things. I'm sure that a number of free sites, who want their words disseminated wildly, would be tickled to see their articles reproduced here, even if they could otherwise choose to exercise their copyright rights and cause problems.

Those who do complain, I'd suspect, are driven by economic incentives. If they are charging for access to the article, and someone reproduces it for free here, I could understand their irritation.

In the absence of knowing (or gambling) about it, linking is certainly the safer route.


in case it's not clear, Gattigap is responding to an earlier version of my post that I then changed -- T.S.

Fenwick Article
 

Lots of sites don't charge for access to articles, but sell advertising, the value of which is utterly dependent on the amount of traffic to the site. So they, too, might be annoyed by having articles fully reprinted elsewhere rather than links posted.

Post the links, it's safer that way.

legal press
 

Not to disparage any VLG lawyer, but what does Orrick have to gain from the acquisition? VLG clearly gains, but Orrick already has a fairly prominent west coast presence.

legal press
 

I agree. It's hard to understand. The only thing I can imagine is that Orrick may believe that venture work will rise again, they want to be positioned for it, and they can afford to ride out the storm if it means getting the right people in place. But, wouldn't they worry that the VLG people would just split again, if things get all late-90s again? Or do they assume those people learned a lesson about the importance of diversification?

legal press
 

Even so, I questioned whether it makes sense to acquire the entire firm. Seems to me that it would put an initial drag on Orrick's PPPs, as I assume that the average at VLG is below Orrick's.

Diversity in the Valley
 

Some time ago, we had a thread discussing diversity at SV offices and firms. The general tenor was that those firms were not diverse, and there were suggestions of racism and intentional discrimination or failure to diversify.

(Of course, we can't actually look at the posts because the thread is gone, which wouldn't be a problem if we just kept a single general thread, ahem. But I digress.)

According to the diversity study discussed in today's Recorder, Wilson was top in diversity in California, and second in the nation. MoFo was third in Cal, 5th in the US. Brobeck (RIP), 3 in Cal, 12 in US. Pillsbury, 7 and 18. Cooley, 9 and 26. All of these firms had huge presence in the Valley, and could not have achieved such levels of diversity without their SV offices also being diverse.

In contrast, LA firms did much worse: O'Melveny, 11 in Cal, 27 in US. Paul Hastings, 13 and 36. Latham, 14 and 465. Sheppard mullin, 16 and 60. Gibson, 19 and 98.

So, here's the big question: Are things much better than we all seemed to think? Or is the relatively strong diversity picture solely due to hiring of Asian-Americans, whereas the earlier discussion focused more on African-Americans?

Thoughts?

More Interesting stuff from today's Recorder
 

An absolutely scathing letter from a former Brobeck senior counsel. Can anyone reprint it here?

More Interesting stuff from today's Recorder
 

For Brobeck Staff, No Sigh of Relief


The Recorder
06-20-2003


In "Brobeck Chipping Away at its Citibank Debts," [June 16] The Recorder reports that Brobeck, Phleger & Harrison "may be breathing a bit easier after shedding more than half its debt load." A minor, but significant, correction is in order. While the former Brobeck partners may be breathing a bit easier, hundreds of former Brobeck staff members are not. No such relief for the loyal employees who can't find new jobs, for those who've lost their homes, for those whose medical benefits were cut off without COBRA, for those who got no severance pay and couldn't use their 401K money to live on because the funds were frozen. No breathing easier for the hundreds of loyal employees who continue to suffer; no breathing easier for all the former employees who continue to feel cheated and betrayed by the Brobeck partners.

After giving or letting Citibank take the reported $30 million, the Brobeck partners can breathe easier because they have reduced their individual and personal liability to Citibank. Apparently, the partners aren't concerned by the fact that they have failed to pay their employees compensation still owed from 2002 and have failed to reimburse expenses employees incurred at the partners' direction. And they don't seem concerned that their employees are stuck with medical and dental bills because premiums taken from employees' paychecks in 2002 were not paid to the medical and dental insurers. Current and future employees of any of the former Brobeck partners might be concerned. Current and future clients might be concerned. The U.S. Department of Labor, various state labor departments, attorneys general, and bar associations might be concerned. But it becomes ever more apparent that neither Citibank nor the Brobeck partners seem concerned that they are paying down their debt with money that belongs to their former employees.

The Recorder article ends with a quote from Steve Snyder, the head of Brobeck's so-called liquidation committee: "Some people just see an opportunity there." What amount of hubris might keep the Brobeck partners from seeing how well those words describe the mistreatment of their former employees?

Jayne Loughry
San Francisco

Editor's note: Jayne Loughry is a former Brobeck senior counsel and a plaintiff in the employee suit against the firm.

Diversity in the Valley
 

I don't recall deleting this thread, which suggests that I merged it into this one. I don't think I've ever deleted any threads. One of the admins (i.e., Leagl or Mister_Ruysbroeck, and -- fyi, all -- evenodds is now an admin too) deleted a thread in which some wingnuts were spamming, but that was different. So if you can't look at the threads, it's because you haven't searched for them, or because it's hard to find them in here, which tends to suggest that leaving them in a separate thread would have been the thing to do.

Anyway.

FYI -- I linked to this study on the Big Board here, though not a whole lot of discussion ensued. Results by firm can be found here.

Diversity in the Valley
 

Is this the thread you're looking for? It doesn't show up on the page that lists the SF/SV threads because it has been inactive for over 30 days; you can list all the threads (which have not otherwise been deleted or merged) by fiddling around with the "Showing threads 1 to 6 of 6, sorted by [various options]" feature at the bottom of the thread list.

PC is correct, no one deleted the thread. Threads only show up automatically if someone has posted in them within the past 30 days. You need to choose for them to show up if you want to look at older threads.

Good explanation PC, I'll link to it from the front page.

Diversity in the Valley
 

As PC says above, the thread is still intact in this forum.

There are a couple of methods for finding threads. One is to reset your default so that the inactive threads pop up in your list. The other is to use the handy search function, which can be set to search by post or thread.

We don't delete threads. As the FB moderator, I have edited the content on a duplicate post of political spam which was posted on several different boards, but we don't delete posts entirely.

Oh, and SlaveNoMore is also an admin.

E/O

Diversity in the Valley
 

Shows what I know, and why we have admins.

For those who don't visit the site often, and may miss the advice about preferences, I recommend a default that shows everything.

Brobeck in today's NYT:
 

In light of the recent discussion, I haven't cut-n-pasted the whole article, and the link is useless as its a subscription site. The upshot is that the dissolution committee is desparately trying to avoid filing for the big BK b/c the partners will then likely have to expose their personal finances for a determination of what they can contribute. Lots of quotes from hurt staffers, embarrassed former partners and everything else we've seen elsewhere in the press.

A few choice quotes though from the end of the article:

Re: trying to avoid filing for bankruptcy...
>>Bankruptch proceedings are "a very public and messy process," said Peter J. Antoszyk, a bankruptcy lawyer at Brown Rudnick Berlack Israels in Boston.

"In some cases," he added, "partners may even be required to disclose their personal financial capacity — how much they can pay." <<


Re: how they may able to avoid filing for bankruptcy...

a guy from Brobeck's liquidation committee

>>expects many partners will have to help pay the firm's debts, even without a bankruptcy filing.

"The partners are going to lose a ton of money," he said. But he acknowledged that losses by wealthy partners probably would not reassure employees who were looking for work. <<


The article also noted that many paid taxes on income that they did not ultimately earn when the income was recognized b/c it was used to take out (or pay back, I forget) the Citibank loan... to the tune of taxes on a cumulative 40 million in income.

Aside from the points noted above, I didn't see anything really new.

Hello

Diversity in the Valley
 

And all this time I thought he was the Artistic Director and Choreographer.

Orrick/Cooley Merger (i.e. Orrick acquires Cooley)?
 

It is the rumorest of rumors, but it comes from what should be a good source. Watch this space, and remember who scooped everyone if it materializes.

Rumorest of Rumors
 

:smack:

Don't start a fire like that and run away.

Rankest of Rumory Rumors
 

I'm still here.

Orrick, Finch & Sutcliffe
 

Not to doubt Less's source, but at this point we have Orrick acquiring Cooley, VLG, and a handful of other firms that I would expect are financially troubled, saddled with big lease obligations (and possibly debt), and struggling to keep their best rainmakers.

Which leads me to conclude that I'm next.

Sidd(the Story of O)Finch

Diversity in the Valley
 

Just for the record, I think it was me.

not7yS

Orrick/Cooley Merger (i.e. Orrick acquires Cooley)?
 

FWIW, I'm honestly more interested in what will happen to their [was growing] NY office with DeSear leaving.

And I'm also thinking your sauce...er, source, is the only person I know that is more of a drunkard than you.

Other than me, of course. And Atticus.

not7yS

Orrick, Finch, and MacCallan
 

Word. You people disgust me.

Bingham McCutchen in merger talks with Riordan's firm
 

Looks like your scoop was correct. I tried to link to today's story but couldn't get the link to work. Sigh. Today I am tech challenged and my clients are acting like it's 2000 again.

AM(you guys are making me hot with all this talk about debauchery)M

Orrick, Finch, and MacCallan
 

ffuck you you fuckin pusseys. i love you guys. you fuckin possies. lets all go to the phone booth c'mon you fuckin pussies i'll fight you right here.

Regards,
Atticus

Bingham McCutchen in merger talks with Riordan's firm
 

Orrick/Cooley Merger (i.e. Orrick acquires Cooley)?
 

Any further information? I know that CG just pulled an ex-partner, Diane Savage, out of retirement to help out. Things must not be looking up for CG, but it could make them a little more attractive as a acquisition.

Orrick/Cooley Merger (i.e. Orrick acquires Cooley)?
 

This should count as an update. Some content deleted.

Orrick May Be Mulling Merger With Cooley

Brenda Sandburg
The Recorder
06-26-2003


Cooley Godward and Orrick, Herrington & Sutcliffe are in tentative negotiations about a possible merger, sources close to both firms said.

Orrick has been in merger discussions with 64-attorney Venture Law Group, and the addition of Cooley may make the deal more desirable for all three firms. While Orrick has a large base of public company clients and a bigger litigation practice, Cooley and VLG have large emerging company practices that some consultants say could be a good long-term investment for Orrick.

The combination "would certainly pull together powerful resources in the technology area," said Philadelphia-based law firm consultant Ward Bower of Altman Weil Inc. The three-way merger would also give Cooley and Orrick a "tie-in to a solid East Coast base."

***

Multiple sources speaking on condition of anonymity said negotiations have been going on since the beginning of the year. It's not clear yet whether the firms have shared financial information or whether they are near a partnership vote. Nevertheless, the sources said the talks are serious. But they warned that the deal could be derailed if the firms' balance sheets are less positive than partners had hoped.

Despite the talk, both firms refused to comment publicly on the possibility of a pact.

***

But Cooley Chairman Stephen Neal acknowledged in an interview in March that the firm was actively looking for a merger partner and would decide within the next few quarters whether there was a firm out there that would meet Cooley's criteria.

The qualifications, he said, included: a firm with a substantial New York presence; culture values similar to Cooley's; substantial litigation and corporate practices; either current capabilities in Europe or an interest in developing them; strong finances; a good balance sheet; and little or no bank debt.

Orrick appears to meet several of Cooley's requirements. The firm has almost 200 attorneys in New York and a toehold in Europe and Asia. In addition to its London and Tokyo offices, Orrick opened an office in Paris last year and a Milan outpost in April.

Financially, Orrick had one of the best performances among Bay Area firms in 2002. It ranked No. 1 in profits, with partners earning $875,000, a 14 percent jump from the previous year. Its gross revenue was also up 9 percent, to $400 million. Cooley's gross revenue fell 15 percent in 2002 to $301 million and profits per partner rose 3 percent, to $735,000.

Orrick has been on a growth spurt. In addition to its international expansion, the firm opened an Orange County office in August when it picked up a group of intellectual property partners from Lyon & Lyon after the IP boutique shuttered its doors. And earlier this year Orrick opened an office in Portland, expanding its presence in the Pacific Northwest.

***

Cooley, which has dropped from a high of nearly 700 lawyers in 2001 to about 500 currently, also has been struggling to cope with the prolonged downturn in the tech sector. It is attempting to decide whether to remain a regional tech player with a few outposts or merge with another firm and become a national, or even international, legal force.

The firm has held discussions with several firms, including New York corporate boutique O'Sullivan, which merged with O'Melveny & Myers in July and New York intellectual property firm Pennie & Edmonds. Since talks with Pennie & Edmonds broke down last year, Cooley was rumored to be in discussions with New York's Proskauer Rose.

**

Orrick/Cooley Merger (i.e. Orrick acquires Cooley)?
 

[QUOTE]Originally posted by I like Pooh
This should count as an update. Some content deleted.

Thanks for the update. I saw this also. Very interesting. Any inside word yet on reactions?

Recorder article RE F&W
 

Would someone mind posting the article about Fenwick's pay freeze (or liberal selections therefrom)? Thanks.

Another One Bites the Dust
 

Apparently, yet another large law firm is biting the dust:

Chicago's Altheimer & Gray is toast.

Best of luck to those about to find themselves jobless, including the summer associates.

Townsend to San Diego
 

Townsend and Townsend and Crew is opening a San Diego office, according to the San Francisco Business Times. They're starting with 3 lawyers there, and hoping to get up to 8 within a year. "Townsend tried unsuccessfully to establish a presence in Southern California once before. Last year the firm held merger talks with Lyon & Lyon LLP, a 100-attorney firm with offices in San Diego and Los Angeles. But the two sides couldn't reach an agreement and Lyon & Lyon eventually declared bankruptcy and dissolved this year."

Bay Area Backslide
 

Here's a surprise: Tech firms have done badly. But Orricks and Hellers have done well (PPP up 14% and 10%, respectively).

Bay Area Backslide
 

1. When the hell did Ty become a Brit? "Orricks and Hellers"? Please.

2. To save everyone the trauma of seeing the I'm-so-great pic. of Ralph Baxter that you pick up from the link, I have reposted the article.


Bay Area Backslide

While Los Angeles firms perform well, tech-focused firms drag state's showing

Brenda Sandburg
The Recorder
07-01-2003


Hammered by the sour stock market and dismal economy, California's elite technology firms continued their slide among the nation's top grossing firms.

The annual rankings of the 100 highest-grossing U.S. firms, published Monday in Recorder affiliate The American Lawyer magazine, shows that firms like Wilson Sonsini Goodrich & Rosati, Gray Cary Ware & Freidenrich and -- of course -- the now-defunct Brobeck, Phleger & Harrison sank in both revenue and profitability last year.

The 13 California firms that made the list had average profits per partner of $790,000 in 2002, up from $770,000 the previous year. But it was the four Los Angeles firms on the list that drove up the statewide performance. The nine San Francisco Bay Area players averaged $655,000 in 2002, compared with $670,000 in 2001 -- a 2 percent decline.

For the second year in a row, Brobeck had the biggest drop in profits of any firm, down 38 percent. Gray Cary was down 10.7 percent, while Thelen Reid & Priest was down by 8.9 percent. Wilson Sonsini dropped 5.8 percent. Wilson Sonsini and Cooley were the only Bay Area firms to see a decline in revenue per lawyer, by 6.5 percent and 2.7 percent, respectively. Latham & Watkins also saw a 1.5 percent dip in revenue per lawyer.

Brobeck was unable to recover from its downward spiral. Faced with heavy debt, a failed merger attempt and an avalanche of partner defections, the firm disbanded in February. However, Brobeck's massive loss of partners -- more than two dozen in the first eight months of the year -- apparently boosted the firm's revenue per lawyer, which shot up 26 percent in 2002, to $715,000.

"I think [the loss of lawyers] is probably the explanation," said former Brobeck partner Stephen Snyder, head of the firm's liquidation committee. "Usually you get a kick in the pants when someone leaves."

While tech firms were buffeted by the economic downturn, firms with diversified practices, particularly those with strong litigation departments and an international presence, were able to boost their revenues and profits. Orrick, Herrington & Sutcliffe stood out among local firms as its profits per partner jumped 14 percent, to $875,000 -- the highest in the Bay Area. Orrick's revenue per lawyer also climbed 8.5 percent, to $700,000, placing it No. 4 behind Gibson, Dunn & Crutcher, O'Melveny & Myers and Brobeck.

Orrick Chairman Ralph Baxter Jr. attributed the firm's success to its high-stakes work and its diversity.

"We focus on high-value engagements, so the work we are doing is important," Baxter said. "Another element to our success is balance. We have a balanced set of practices, balanced geography and a balanced sector penetration, so we are less vulnerable to a downturn in any sector, practice or region."

Other old-line San Francisco firms that boosted their profits last year were Heller Ehrman White & McAuliffe, which had a 10 percent increase in profits per partner; Pillsbury Winthrop, up 6.8 percent; and Morrison & Foerster, up 3.7 percent. While Cooley Godward's revenues dropped 15 percent in 2002, unlike other tech firms, it nudged up its profits by 2.8 percent.

Nationwide, many firms on the AmLaw list that had a drop in profits per partner in 2001 saw their fortunes brighten last year. While in 2001 nearly one-third of the AmLaw 100 firms had a decline in profits, in 2002 only 15 firms did so -- the same number as in 2000.

However, profits continued to decline for the two most profitable firms -- Wachtell, Lipton, Rosen & Katz and Cravath, Swaine & Moore -- which respectively had profits per partner of $2.9 million and $1.96 million. Wachtell logged a 7.7 percent decline, while Cravath's profits were down 8.2 percent from the previous year.

In terms of gross revenue, the top five firms remained the same as last year. Skadden, Arps, Slate, Meagher & Flom, the nation's highest-grossing law firm, posted revenue of $1.3 billion. Baker & McKenzie ranked second with $1 billion; Jones Day rang in at third place with $908 million; Latham held onto fourth place with $906 million; and Sidley Austin Brown & Wood continued in the No. 5 spot with $831 million.

MAKING THE LIST

Regionally, New York and Washington, D.C., area firms had the largest presence on the AmLaw list. The top-grossing firm in D.C. was Hogan & Hartson, which had gross revenue of $480 million. Two D.C. firms moved onto the AmLaw 100 list this year: Dickstein Shapiro Morin & Oshinsky and Patton Boggs. American Lawyer credited Dickstein Shapiro's improved finances to contingency fees from a big antitrust suit and Patton Boggs' success to lobbying and regulatory work. Philadelphia's Drinker Biddle & Reath and New York's Kelley Drye & Warren also joined the top 100 list this year.

Among the regional firms with a significant Bay Area presence, Boston's former Bingham Dana reaped the rewards of its merger last July with San Francisco's McCutchen, Doyle, Brown & Enersen. Ranked No. 29, Bingham McCutchen posted gross revenue of $433 million and profits per partner of $920,000. McCutchen did not make the AmLaw top 100 list in 2001, while Bingham came in at No. 64 with gross revenue of $251 million and profits per partner of $870,000.

Bingham Chairman Jay Zimmerman said the firm's finances reflect the success of the merger.

"What McCutchen brought to us was a wonderful West Coast geographic presence and a phenomenal litigation practice," he said. Meanwhile, Bingham has continued to benefit from its diverse practices, including its financial restructuring insolvency practice.

Pittsburgh's Reed Smith also had a strong performance with gross revenue up 17 percent, to $314 million, and profits per partner jumping 23.8 percent, to $495,000. The figures do not reflect Reed Smith's merger with Oakland's Crosby, Heafey, Roach & May in January, which gave Reed Smith a presence in the Bay Area.

Reed Smith firmwide Managing Partner Gregory Jordan said the figures reflect the firm's growth in London -- Reed Smith merged with London's Warner Cranston in January 2001 -- and New York. In addition, Jordan said the firm has benefited from its diversity and efforts to obtain more high-end work.

"We tend to be working on more significant matters," which can cost more and result in quicker payment, Jordan said. "You get time turned into dollars more quickly."

Meanwhile, Morgan, Lewis & Bockius, which obtained a significant Bay Area presence with the acquisition of dozens of Brobeck lawyers, saw a dip in its revenues and profits last year. Gross revenue was down 3 percent, to $557 million, and profits per partner dipped 2.7 percent, to $720,000.

101 California
 

The Chronicle reminds us that 10 years ago today, a gunman walked into the offices of Pettit & Martin and started shooting. He killed eight people and wounded six. Pettit & Martin ultimately didn't survive as a firm, although its veterans are at many other firms.

Bay Area Backslide
 

The more I think about it, the more I realize that lawyers make an insane amount of money. What the hell do you do with $2.9 M a year? Or even $400k/yr? That's a lot of scratch. I guess I won't know until I get there myself and have to support a mistress, her drug habit, the inevitable divorce, child support, and the obligatory Mercedes or BMW.

Bay Area Backslide
 

Weren't you just discussing this?

Bay Area Backslide
 

Ty, I gamble because I have no money, not because I have too much of it. Once I hit that lottery and quit my day job, no more gambling for me.....I'm touched though, and slightly creeped out, that you had enough recall to remember what I was blabbering about on the FB.

Flinty

Bay Area Backslide
 

Small thinker.


Sidd(greed is its own reward)Finch