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Heller Ehrman: Anatomy of a Dissolution

Heller Ehrman LLP Above the Law blog.JPGIt’s official: Heller Ehrman is dissolving. We have no desire to pile on, but major firms don’t close their doors everyday.

So, how does the dissolution process work exactly?

The first thing Heller is required to do by law is to give notice to all their employees under the Worker Adjustment and Retraining Notification Act (WARN). Heller complied with this requirement this afternoon:

I regret to inform you that The Firm has adopted a plan of liquidation and will shut down substantially all of its operations on or about November 28, 2008. At the time of the shutdown, the employment of The Firm’s employees will be permanently terminated. Until then, please be aware that The Firm has work for you and expects you to report to work. Employees will be paid full salary and benefits until the shutdown. Where applicable, employees with accrued but unused vacation time may be scheduled for vacation prior to November 28.

You do not have displacement or bumping rights for other positions within The Firm. However, in order to conduct an orderly liquidation, The Firm may continue to employ a very limited number of employees after the date of the shutdown. If you wish to be considered for such work, please notify me by email; The Firm will let you know about past November 28 work within the next few days.

This letter constitutes notice to you pursuant to statute. As a terminated employee, you may be entitled to certain benefits, which will be the subject of a separate communication. The shutdown is being treated as a plant closing under relevant law, and includes the termination of employment of employees employed at 333 Bush Street, San Francisco, California 94104.

In the event you require additional information, please feel free to contact [redacted]

Additional analysis of Heller’s breakup, after the jump.

According to figures provided at Heller Highwater, Heller has $118 million in accounts receivable, against $50 million in loan debt. Assuming that Heller can collect on all or most of these accounts, they should have more than enough money to pay their employees during the 60-day window.

Vacation time poses a slightly different problem. Employees with outstanding vacation days are entitled to be paid for those days. While some of our commenters have asked “why would these people continue to show up for work,” it is in their best interest to do so. As Heller Highwater notes:

[I]f you have accrued a large amount of vacation time, it is in the shareholders’ best interest to reduce that amount of money to which you are legally entitled and which must be paid upon your termination;

[I]f between now and November 28th there is not enough work for you in your position or your department that is not your problem - you need to make yourself available for work each day and making sure work is available is up to management.

But while associates and support staff begin “Operation Shut Down,” others inside and outside of the firm are trying figure out how this happened to one of the most respected West Coast law firms. One of our readers had an interesting theory:

[D]uring the past 8-10 years, the firm was ultimately converted from a close collection of California attorneys who worked together with the primary goal of practicing law (i.e., a law firm) to a collection of east and west coast attorneys who were more interested in making money (i.e., a business that practiced law) to increase revenues and boost profits. Consequently, over the past 8-10 years, Heller morphed from being a “kinder, gentler, west coast” BigLaw firm to a firm that was trying so hard to move (culturally, financially, etc) to NYC. Apparently, the effort ran out of gas and Heller ended up getting stuck somewhere in the Midwest (metaphorically, that is).

We encourage others to share their opinions and thoughts as Heller goes supernova before our eyes.

WARN Act Notice [Heller Highwater]

Comments

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1 Posted by guest | Permalink Friday, September 26, 2008 6:52 PM

how does this post affect associates at WILDMAN HARROLD??

how does this post affect associates at WILDMAN HARROLD??

how does this post affect associates at WILDMAN HARROLD??

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2 Posted by guest | Permalink Friday, September 26, 2008 6:53 PM

FIRST to say that WILDMAN HAROLD is a prestigious firm.

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3 Posted by guest | Permalink Friday, September 26, 2008 6:54 PM

WILDMAN? What the hell is that?

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4 Posted by guest | Permalink Friday, September 26, 2008 6:54 PM

WILDMAN WILDMAN WILDMAN WILDMAN WILDMAN

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5 Posted by guest | Permalink Friday, September 26, 2008 6:55 PM

WILDMAN only recruits from UPENN State Philly Campus and GULC.

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6 Posted by guest | Permalink Friday, September 26, 2008 6:55 PM

how does this impact partners at WILDMAN HARROLD?

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7 Posted by guest | Permalink Friday, September 26, 2008 7:00 PM

i have summer offers from WILDMAN and Cravath but cant decide where to go...thoughts?

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8 Posted by guest | Permalink Friday, September 26, 2008 7:02 PM

I don't understand the vacation-time reasoning: it is in our interests to reduce the amount we owe you for accrued vacation, so make sure that you show up for work and ... accrue more vacation?

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9 Posted by guest | Permalink Friday, September 26, 2008 7:03 PM

I would work for ATL #7 and t-bag Weil Gotshall associates like it was no big deal.


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10 Posted by guest | Permalink Friday, September 26, 2008 7:04 PM

When we will start proofreading?

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11 Posted by guest | Permalink Friday, September 26, 2008 7:08 PM


Lat, how did you get Elie to work past 5:00?

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12 Posted by guest | Permalink Friday, September 26, 2008 7:09 PM

Elie is most certainly NOT WILDMAN material.

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13 Posted by guest | Permalink Friday, September 26, 2008 7:09 PM

Islam = TTT

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14 Posted by guest | Permalink Friday, September 26, 2008 7:10 PM

8, you realize the second block quote is from Heller Highwater, which is not affiliated with Heller management, right?

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15 Posted by guest | Permalink Friday, September 26, 2008 7:11 PM

WILDMAN = TTT

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16 Posted by guest | Permalink Friday, September 26, 2008 7:12 PM

Holy shit Wildman Harrold is real.

Really Wild!!


wokka wokka wokka

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17 Posted by guest | Permalink Friday, September 26, 2008 7:14 PM

Mystal loves him some Twink.

Balls Deep

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18 Posted by guest | Permalink Friday, September 26, 2008 7:17 PM

partners at wildman go praballsdeep on SAs.

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19 Posted by guest | Permalink Friday, September 26, 2008 7:42 PM

It is in their best interest to reduce the vacation hours owed to the employees by having them take vacation while the firm is in business so they don't have to pay them during the 60 day notice period and then after that period for accrued vacation

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20 Posted by guest | Permalink Friday, September 26, 2008 7:43 PM

It is in their best interest to reduce the vacation hours owed to the employees by having them take vacation while the firm is in business so they don't have to pay them during the 60 day notice period and then after that period for accrued vacation

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21 Posted by guest | Permalink Friday, September 26, 2008 7:51 PM

What the hell was the point of that, #19?

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22 Posted by guest | Permalink Friday, September 26, 2008 7:58 PM

This statement is correct: "Consequently, over the past 8-10 years, Heller morphed from being a "kinder, gentler, west coast" BigLaw firm to a firm that was trying so hard to move (culturally, financially, etc) to NYC". The problem is, they had a GREAT baseball team, but they decided to start playing basketball. But they still had baseball players, and as much as the coaches screamed, "dunk! dunk!" -- if you're a 40-year old overweight lefty, it ain't happening. Had they continued playing baseball, that guy might have won the Cy Young.

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23 Posted by guest | Permalink Friday, September 26, 2008 8:34 PM

Yeah, yeah, baseball is totally interesting, but what we REALLY should be discussing is, how fucked is Thelen?

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24 Posted by guest | Permalink Friday, September 26, 2008 8:51 PM

"Consequently, over the past 8-10 years, Heller morphed from being a 'kinder, gentler, west coast' BigLaw firm to a firm that was trying so hard to move (culturally, financially, etc) to NYC. Apparently, the effort ran out of gas and Heller ended up getting stuck somewhere in the Midwest (metaphorically, that is)."

DEAD ON.

Did you know they had a Madison, WI office paying 160? 160!!!!??? The closest thing to that is Foley & Lardner at 135... even Milwaukee only has places up to 145. If paying 160 in Madison (pop. 220,000) is not a sign/symbol/indicative of desperately trying "so hard to move (culturally, financially, etc) to NYC" then I don't know what is.

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25 Posted by guest | Permalink Friday, September 26, 2008 8:56 PM

14 -- No I didn't. Thanks.

19/20 -- That was surely the intended meaning, but no the expressed one.

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26 Posted by guest | Permalink Friday, September 26, 2008 9:02 PM

24: You do not know what you are talking about. I am from a non-Madison office and I know that the firm's Madison outpost had it going on. Old Heller vibe and hippy-dippy spirit, charging national rates with more work than they know what to do with in Madison . . Madison! U.S. Supreme Court clerks lining up, etc., etc. Happy, happy, except for maybe too much work. I just wish I could have afforded the mansions senior associates were building. God bless them all, wonderful people.

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27 Posted by guest | Permalink Friday, September 26, 2008 9:03 PM

So Heller send this notice to secretaries and file room employees? Bumping rights?? What does a staff member do if they are interviewing? Use vacation?

This can't be a legit communication from the professional firm WTF?

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28 Posted by guest | Permalink Friday, September 26, 2008 9:25 PM

Serious question:

Would it be futile to send in my NALP reimbursement form at this point?

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29 Posted by guest | Permalink Friday, September 26, 2008 9:36 PM

28 -- they're still paying us (associates) reimbursements. So, what have you got to lose?

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30 Posted by guest | Permalink Friday, September 26, 2008 10:08 PM

Heller Ehrman White & McAuliffe was rockin' firm. It was when they became "HellerEhrman LLP" that things started going down the crapper.

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31 Posted by guest | Permalink Friday, September 26, 2008 10:10 PM

Heller Highwater. funny.

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32 Posted by guest | Permalink Friday, September 26, 2008 10:11 PM

Islam = TTT

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33 Posted by guest | Permalink Friday, September 26, 2008 10:15 PM

Would someone please explain what the heck
"Islam = TTT" means?

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34 Posted by guest | Permalink Friday, September 26, 2008 10:30 PM

It means some of the people who post comments are morons.

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35 Posted by guest | Permalink Friday, September 26, 2008 10:38 PM

RIP Heller. Good luck to all the associates, hope you guys land on your feet soon enough.

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36 Posted by guest | Permalink Friday, September 26, 2008 10:50 PM

Who's dumber, the partner who wrote that memo or Joe Biden. Pick 'em!

I'll go first- Biden!

37 Posted by TTTroll | Permalink Friday, September 26, 2008 10:50 PM

Seriously, if you want to be a dick or just troll, there are so many other threads. You don't have to respect Elie or ATL, but have some respect for your peer ssome of whom will probably be having a really shitty Thanksgiving.

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38 Posted by guest | Permalink Friday, September 26, 2008 10:55 PM

Every time I see a post on Heller's dissolution, I really just can't believe it. When I considered summering in their Seattle office a few years back, they were at the top of the market, and at the top of everyone's OCI lists.

It's unreal how a firm can fall so far, so quickly. And it should serve as a warning that no firm (like no bank), is really safe in times like these.

My thoughts and best wishes are with the attorneys and staff of Heller.

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39 Posted by guest | Permalink Friday, September 26, 2008 10:59 PM

Yes, it was all Madison's fault. Damn cheeseheads!

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40 Posted by guest | Permalink Friday, September 26, 2008 11:05 PM

All of you fuckers throwing out "TTT" and scoffing at the Heller folks ought to be ashamed. As a former Testa associate who went through this, its not funny, particularly for those Heller employees, whether partners, associates, staff or copy center workers who have to support families, this is a rough time. Show some compassion, you mouth-breathing asshats.

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41 Posted by guest | Permalink Friday, September 26, 2008 11:06 PM

Druids=TTT

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42 Posted by guest | Permalink Friday, September 26, 2008 11:10 PM

You said it 37! I'm voting for the partner!

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43 Posted by guest | Permalink Friday, September 26, 2008 11:15 PM

What's all this TTT stuff? Anyways, tick it up for partner-1, biden-2.

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44 Posted by guest | Permalink Friday, September 26, 2008 11:16 PM

Mouthbreathers = TTT

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45 Posted by guest | Permalink Friday, September 26, 2008 11:44 PM

Islam = TTT

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46 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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47 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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48 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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49 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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50 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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51 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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52 Posted by guest | Permalink Saturday, September 27, 2008 12:13 AM

Kudos to Elie for working late. Really, I always bash him, but I think he is trying and making progress.

Get rid of the Islam = TTT posts!! It's just stupid to have 10 of those on one thread.

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53 Posted by guest | Permalink Saturday, September 27, 2008 12:26 AM

24 - if you think that the madison office payroll had anything to do with the dissolution you are dead wrong

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54 Posted by guest | Permalink Saturday, September 27, 2008 12:30 AM

I completely agree with #40. Heller was a fine firm with many great people. I very strongly considered accepting an offer with them for last summer, but opted for another firm which ended up being a great fit. I really and truly feel for all of the employees.

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55 Posted by guest | Permalink Saturday, September 27, 2008 12:40 AM

53 - I think you misunderstood 24 simply citing one *symptom* and not suggesting it was *the* cause or even *a* cause.

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56 Posted by guest | Permalink Saturday, September 27, 2008 12:48 AM

I have an observation--the earlier posts about Heller contained some thoughtful analysis re the firm's history and its terrible demise. Oh sure, there were the usual TTT=Islam and other inane posts, but we has some great insight by some well meaning folks, who obviously had decent information about Heller and its problems. Even Elie's terrible writing did not deter from the quality of the posts.

Fast forward to this thread. Almost totally occupied by dipshits with nothing better to say than TTT=Islam. Why? Because the Shareholders and folks who knew the institution best have now said their peace and have reluctantly moved on. They have, in essence, turned the keys over to the juviniles and illiterates.

It's like the final scavaging of a once great ship by petty theives and scoundrals. It truly is time to turn away from once bad-ass law firm.

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57 Posted by guest | Permalink Saturday, September 27, 2008 12:48 AM

I have an observation--the earlier posts about Heller contained some thoughtful analysis re the firm's history and its terrible demise. Oh sure, there were the usual TTT=Islam and other inane posts, but we has some great insight by some well meaning folks, who obviously had decent information about Heller and its problems. Even Elie's terrible writing did not deter from the quality of the posts.

Fast forward to this thread. Almost totally occupied by dipshits with nothing better to say than TTT=Islam. Why? Because the Shareholders and folks who knew the institution best have now said their peace and have reluctantly moved on. They have, in essence, turned the keys over to the juviniles and illiterates.

It's like the final scavaging of a once great ship by petty theives and scoundrals. It truly is time to turn away from a once bad-ass law firm.

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58 Posted by guest | Permalink Saturday, September 27, 2008 12:49 AM

Treating a biglaw firm's liquidation as a "plant closing" is particularly appropriate.

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59 Posted by guest | Permalink Saturday, September 27, 2008 12:49 AM

Redacted part:
In the event you require additional information, please feel free to contact your local Human Resources Generalist, Anke Dzikonski, at (415) 772-6111 or email HellerEhrmanMgmt@hellerehrman.com.

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60 Posted by guest | Permalink Saturday, September 27, 2008 12:53 AM

Not sure how ATL has sunk to new lows, but they are blocking IP addresses.

WHY THE FUCK ARE YOU BLOCKING IP ADDRESSES, LAT? Trying to censor? Is Rob Fram scaring you? Did he threaten to sue you? Did he threaten to take you down? Rob Fram is a fuck up. Rob Fram did what an earthquake and two world wars could not do--he took down Heller Ehrman. So, maybe Lat you are correct to IP block when people voice their opinions on Rob Fram. If he can take down Heller, he can certainly take down ATL.

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61 Posted by guest | Permalink Saturday, September 27, 2008 1:08 AM

55 - Symptom of what? Why wouldn't they pay Madison the same as other offices? Madison billed out at the same rates as the others.

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62 Posted by guest | Permalink Saturday, September 27, 2008 1:08 AM

60: Apparently you are one of the morons. If Lat can block your IP address, more power to him.

Oh -- and if he can block the Islam poster, do that too.

Thanks to those who have had kind comments for those of us in the ship that's going down.

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63 Posted by guest | Permalink Saturday, September 27, 2008 1:13 AM

24 is obviously not a litigator, or anyone who knows anything about jurisdiction or litigation.

Madison is Western District of Wisconsin, i.e. one of three rocket dockets. It's also a tech/biotech industry cluster because of the university.

Not a bad place at all to have an office.

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64 Posted by guest | Permalink Saturday, September 27, 2008 1:16 AM

Dear 24:

My impression from following the Heller story over the last year and a half in the legal press is that its problems started with centralizing firm management in Los Angeles, and with the unpopular managerial style that came with that.

That is when partners and practice groups started migrating, which was unusual at Heller--known for its lack of partner turnover. Profits dipped, more pissed off partners left, and the thing spiraled down.

Anyway, that is the impression I formed over the last 15 months.

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65 Posted by guest | Permalink Saturday, September 27, 2008 1:24 AM

I work at a firm that inherited a client from Heller a few years ago. Although Heller did not deliver a great result in one particular litigation matter for the client, no one blamed the Heller folk. The case was all about damage mitigation and Heller did a bang up job.

You all will be missed. But, rest assured that your work product from a few years back is invaluable to our efforts now on behalf of your former client.

Godspeed Heller folk.

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66 Posted by guest | Permalink Saturday, September 27, 2008 1:25 AM

I work at a firm that inherited a client from Heller a few years ago. Although Heller did not deliver a great result in one particular litigation matter for the client, no one blamed the Heller folk. The case was all about damage mitigation and Heller did a bang up job.

You all will be missed. But, rest assured that your work product from a few years back is invaluable to our efforts now on behalf of your former client.

Godspeed Heller folk.

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67 Posted by guest | Permalink Saturday, September 27, 2008 1:31 AM

65 and 66 here.

I usually mock double-posters. Rest assured that I will be viciously mocking myself for my sins.

To the ATL Community:

I am sorry. Please accept my apologies. I hope I walk outside of my condo building tomorrow to find a shame pole.

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68 Posted by guest | Permalink Saturday, September 27, 2008 1:31 AM

Fuck you, 62. I am a current Heller attorney, and there are many who feel the same way as I do. Rob Fram fucked us over. 62, you must be one of those smug motherfuckers going over to Covington next week. Well, fuck you and fuck Rob Fram.

Love, 60.

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69 Posted by guest | Permalink Saturday, September 27, 2008 1:40 AM

Look. Here's what we know about IP lit and Rob Fram. They had been in negotiations for MONTS with Covington. Rob Fram is a former Covington attorney, who came to Heller in the 90s, so he was buddy buddy with those guys the whole time. He sat next door to one of the masterminds of this deal at Covington during his time there, and remained close ties to this Covington attorney and other Covington attorneys after he came to Heller.
IP lit should have done one of two things. The 14 shareholders should have left months ago, or waited until after the merger with Mayer to leave. To have announced their departures pretty much at the same time that the merger with Mayer was being finalized was the straw that broke the back of this great firm. Not only are they going to one of the most prestigious law firms in America, they also managed to destroy one of Covington's primary competitors in the process. This was a win-win deal for Covington, and for these IP lit shareholders. Everyone close to their departure knows this. And it is time the larger legal community was made aware.

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70 Posted by guest | Permalink Saturday, September 27, 2008 2:17 AM

69: Looking at the Brobeck experience, shouldn't Covington be concerned?

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71 Posted by guest | Permalink Saturday, September 27, 2008 2:20 AM

69, Your comments make a lot of sense. Good to know this history, because as they say, history repeats itself. It's obvious the timing was deliberate and meant to be as devastating as it played out to be. Of course one can win the race if one kills your opponent. Wussies. Like beating your granny as bragging about it.

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72 Posted by guest | Permalink Saturday, September 27, 2008 2:20 AM

62, 68: I am not going to Covington. And I don't have a new job.

This narrow line that the Fram group caused the disaster is ridiculous. Problems have been mounting for years, Several acquired groups (e.g. VLG) didn't fit well. What had been a pretty tight knit crew as of about ten years ago had grown too rapidly, in too many places. The costs of doing that were high, and did not return enough in client or profit growth. And, there is "Adam Smith Esq's" great point that all law firms are financially fragile. "The assets go down in the elevator every nigh" is not just an amusing saying.

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73 Posted by guest | Permalink Saturday, September 27, 2008 2:25 AM

All the Covington converts are simply Heller Haters, 'nuff said. Look for their rap video to hit the shelves soon.

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74 Posted by guest | Permalink Saturday, September 27, 2008 2:27 AM

Sorry, meant to finish my comment in 73. Notice that none of the traitors bothered to send out the usual farewell email to anyone!- why? because they're haters.

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75 Posted by guest | Permalink Saturday, September 27, 2008 2:37 AM

Freedom!!! FREEDOMM!!!!!!!!!

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76 Posted by guest | Permalink Saturday, September 27, 2008 2:55 AM

A plant closing!? Seriously? This is the kind of "management" Heller has hired for the past few years. No class, no talent, no legal experience. My God, it's no wonder it imploded.

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77 Posted by guest | Permalink Saturday, September 27, 2008 3:46 AM

74, here's news:

1. EVERYONE is leaving the firm. The firm is dissolving. There's no firm to which one can be a traitor anymore.

2. No one going to Covington has had his or her last day at Heller yet, so it's unsurprising that none of these people has sent out his or her farewell email.

3. Give me a break -- I thought people had gotten past this ridiculous "Rob Fram killed Heller" thing. If your firm is at the point where (really) 4 books of business walking out (Fram, Haslam, Sobin, Blankenheimer) causes a firmwide collapse . . . well then your firm was already destroyed. (Or try it this way: if in order to avoid dissolution, your firm had to sell out its culture, lay off a ton of people, and be acquired by a gigantic 2,000-plus or 3,000-plus person firm that none of your attorneys would have ever independently considered going to . . . your firm was already destroyed.) If you want to be simplistic and cite a scapegoat, at least go with Matt Larrabee.

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78 Posted by guest | Permalink Saturday, September 27, 2008 3:57 AM

69, it is naive and absurd to think that the IP Lit people could have waited until the Mayer merger was approved and then just left. The merger vote was just step one in the merger *process*; the deal would not have been closed for months. The IP Lit group was one of the main groups Mayer wanted. Do you really think any pre-closing interim agreement wouldn't have included an escape clause for Mayer if a bunch of these people left the firm prior to closing? And if your suggestion is that they should have waited around until late December or whenever a merger actually closed, you don't think they'd (a) risk giving up the deal with the firm they actually wanted to go to (Covington) and (b) be required to make some kind of capital contribution to Mayer, which they'd then forfeit when they left?

(They also couldn't have left earlier because, despite what you misstate in your post, the IP split was not even an idea until after the Baker merger failed.)

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79 Posted by guest | Permalink Saturday, September 27, 2008 4:00 AM

77, fyi, 4 SF litigators have left - Goodwin, Hobel, Greenberg and Brand. Hobel and Goodwin snuck out June 30. Greenberg and Brand left late Aug - early Sept. Also quietly. Their magnetic draw encouraged the entourage that is going to follow Oct. 1. I'm not blaming them to killing Heller, just that they have to share some of the blame, that is all. I almost feel some sympathy for Matt Larrabee, but then I'm snapped back to reality when I remember the many, many, many times attorneys tried over and over again to talk some sense to him. So it is what it is.

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80 Posted by guest | Permalink Saturday, September 27, 2008 4:14 AM

79, you are beyond ignorant. Are you really uninformed of the fact that a Mayer merger *would not have included* the insurance recovery group -- the group to which each of the attorneys you list by name belonged??? (Thanks for the snarky "fyi," though.) Is your argument really that by being thrown under the bus and forced out of Heller they are therefore responsible for Heller's downfall? That doesn't even make sense.

(BTW: the notion that David Goodwin -- who is about as "Old Heller" as you can get, and who could have walked out for more money any time in the last 20 years -- is somehow a "traitor" who shares some responsibility for what happened is beyond audacious. You shouldn't look at him leaving and blame *him*; you should look at him leaving and realize that the firm must have been grossly mismanaged and changed drastically and in a bad way for someone who so represented Heller culture to walk out the door.)

-77

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81 Posted by guest | Permalink Saturday, September 27, 2008 4:16 AM

77 = Half right, half wrong. Several SF lawyers have already gone to Covington - David Goodwin, Larry Hobel, Mike Greenberg and Esta Brand - all insurance recovery litigators. They left this summer. No farewells from any of them and every single one of them were at SF Heller for over 20 years. In fact, Barry Levin had to send out an emergency email stating Goodwin and Hobel "had resigned" after the fact that it was already printed in the Recorder.

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82 Posted by guest | Permalink Saturday, September 27, 2008 4:22 AM

80, you are right on the money about Goodwin. For him to just up and leave like he did was a sad day for Heller and also plain to see the writing on the wall. He was a very, very dedicated attorney who loves the law. The fact that he just split in the middle of the night clearly shows how back things were and how stupid the powers that be were, as well as deaf and blind. Heller suffered a Huge loss with Goodwin's departure. Huge.

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83 Posted by guest | Permalink Saturday, September 27, 2008 4:23 AM

Read the response at 80. What should their "farewells" have read though: "Thanks to firm management for ruining this firm and forcing me out?" How about Greenberg and Brand, who were not even partners and had no way of landing on their feet other than following Goodwin and Hobel (given that the alternatives were a merger from which they were excluded due to PG-wide conflicts or dissolution)? What should their "farewells" have said. The fact that these people were all with Heller for 20 years is telling, but certainly not in the way you apply.

I really don't understand why you want to bootlick management here. Management is responsible for tanking this firm. Not a couple 50-something "of counsels" from the insurance recovery group. Not David Goodwin. Not Rob Fram.

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84 Posted by guest | Permalink Saturday, September 27, 2008 4:24 AM

Sorry, "apply" = "imply"

-83

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85 Posted by guest | Permalink Saturday, September 27, 2008 4:33 AM

83, ok. point taken. you win. Heller looses - big time.!! Management drove this firm into the ground in record time. It's disgusting. There was no recovery possible after good people like Goodwin left. So tragic - and potentially avoidable if management could have pulled their heads outta their asses.

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86 Posted by guest | Permalink Saturday, September 27, 2008 7:01 AM

David Goodwin left for very good reasons -- why should he wait for a merger to happen that would have excluded him? For that matter, why should he stick around if management can't even be polite to him or anyone else not in their "in" crowd, no matter how big their book. This firm was tanked by a total lack of people skills at the top, among other things.

The shareholders concentrated the money in fewer and fewer people, a lot of them the very same ones who had no clients, but were paid handsomely for "managing" the firm into the shitter. As the dissolution proceeds, it's going to become clear that a few of these guys were skimming nonexistent profits for years.

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87 Posted by guest | Permalink Saturday, September 27, 2008 7:01 AM

David Goodwin left for very good reasons -- why should he wait for a merger to happen that would have excluded him? For that matter, why should he stick around if management can't even be polite to him or anyone else not in their "in" crowd, no matter how big their book. This firm was tanked by a total lack of people skills at the top, among other things.

The shareholders concentrated the money in fewer and fewer people, a lot of them the very same ones who had no clients, but were paid handsomely for "managing" the firm into the shitter. As the dissolution proceeds, it's going to become clear that a few of these guys were skimming nonexistent profits for years.

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88 Posted by guest | Permalink Saturday, September 27, 2008 9:31 AM

24: Your comment about Madison shows just how little you know, as pointed out, in part, by 26. For one, through August of this year, Madison was the ONLY heller office above budget for hours. So while those high-paid associates in other offices were working hard on pro bono cases, or watching traffic down on the street below, Madison associates were billing billing billing.

While the WD Wis.'s speed was certainly a consideration in starting the Madison office, the office's platform has evolved far beyond that, with cases all over the country. It matters less now days where the talent is located, just that you have talent staffing your cases. Madison has that.

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89 Posted by guest | Permalink Saturday, September 27, 2008 10:29 AM

Either this story is incomplete, or Heller management has no clue. Is this how staff was officially informed of the dissolution?? Or did they have a meeting to gently discuss and let them vent?

If this is the first and only communication to staff, this sucketh Heller! Staff should take on their on bumpin rights

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90 Posted by guest | Permalink Saturday, September 27, 2008 10:48 AM

Fram is a douche.

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91 Posted by guest | Permalink Saturday, September 27, 2008 10:49 AM

89, you need to read all of the Heller threads, not just this one. Staff was told about this in a meeting the day before the e-mail went out. The e-mail was just the official notice of what they'd already been told.

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92 Posted by guest | Permalink Saturday, September 27, 2008 10:54 AM

Personally, I blame the use of Times New Roman 13pt as the default font at Heller. It was only a matter of time.

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93 Posted by guest | Permalink Saturday, September 27, 2008 10:56 AM

89, yes, an email was used to let go employees that have been there 10-20-30 years

an email.

all, why does it matter which theory of how this came to pass is the closest to reality? it's come to pass.

it's fucking sad. it fucking stinks. amazingly, middle management escaped the axe and they were allowed to play favorites as to who received the email and who didn't (the firm will wind down with some employees still remaining)

i thought smart companies get rid of middle management first (i digress)

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94 Posted by guest | Permalink Saturday, September 27, 2008 11:00 AM

The IP group that went to Covington was never going to be part of the Mayer merger, and that was disclosed to Mayer from the beginning.

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95 Posted by guest | Permalink Saturday, September 27, 2008 11:00 AM

Can someone please explain why Wildman was even brought up? I have a summer offer from them.

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96 Posted by guest | Permalink Saturday, September 27, 2008 11:00 AM

Can someone please explain why Wildman was even brought up? I have a summer offer from them.

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97 Posted by guest | Permalink Saturday, September 27, 2008 11:44 AM

93 - The email was the official WARN notice. We were all informed of the dissolution on September 25, 2008 in a firmwide video conference. We knew it was coming. We were warned by the blogs.

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98 Posted by guest | Permalink Saturday, September 27, 2008 12:19 PM

Former Heller associate here.

I've known about the dissolution for a little under two weeks, and received two different explanations from former/current Heller shareholders.

One told me that there have been problems for at least a few years, when Heller lost some big clients (like Visa) and various strategies were implemented to turn it around (expanding D.C., moving to Asia/Europe) and failed. Apparently the foreign offices were meant to attract business here in the U.S. in the short-term.

Another shareholder blamed the rash of recent settlements and said that Larrabie didn't react quickly enough to deal with them.

Both said that the firm is currently solvent and that the shareholders are acting now while they're still solvent so they don't have a disasterous ending, like Brobeck did.

One told me that Larrabie was called out during the last yearly Shareholder's meeting. The convo as described to me was hilarious and embarassing to Larrabie. So shareholders were very aware that he sucked.

The long post in the prior thread explaining why things happened was very good and well-written, but some of it was off. The transformation of Heller from a west coast lifestyle firm to a national/international firm focused on the bottom line didn't cause the collapse. It did, however, accelerate it.

Partners who have an emotional attachment to the firm will stick around even if the firm is having a bad year. But hired guns (partners who lateraled over from another firm) are apt to just jump ship if they'll get less money in the short-term. Transforming Heller into a big national/international firm meant bringing in a lot of shareholders who had little loyalty to Heller as an institution.

One of the shareholders told me that once partners are asked to take less money in the short-term, you have to convince them that there's a long-term plan that will pay them more money. Larrabie wasn't able to do that, so they started jumping ship.

As for blaming Fram, yes he's a complete douchebag. He was when I was there too. But he's hardly the most at fault here. I knew Heller was doomed as soon as I saw David Goodwin leave. One of my sources tells me that Fram sunk the Mayer deal, but at that point, who cares? It appears that all the staff will get paid now, and all the good pieces that made Heller will end up at firms like Mayer, Winston, and Baker anyway. Fram's departure only screwed seriously underperforming shareholders/practice groups that needed to be brought over as a package deal in a merger.

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99 Posted by guest | Permalink Saturday, September 27, 2008 12:52 PM

For those who think Fram et al should have waited until after the Mayer merger was finalized to leave, do you really think there are no ethical problems (not from a legal ethics/bar admission standpoint, but a general moral/ethic standpoint) with the idea of these people basically defrauding Mayer Brown by pretending to be on board with the whole deal (especially important given how many of you claim that IP Lit was a key group Mayer Brown was looking to acquire) and then bailing out as soon as the deal was done?

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100 Posted by guest | Permalink Saturday, September 27, 2008 12:52 PM

All blame belongs directly on Larrabie's lap. The only thing he has "managed" is to be a complete d-bag until the very end (how'd you like that "you're welcome" crack when he told us that although we were all fired, we were getting paid on Friday). And now he gets to walk away to some million-dollar deal with another firm. Unreal. I would trade my (probably never-to-be-paid) vacation accrual time to kick him in the nuts.

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101 Posted by guest | Permalink Saturday, September 27, 2008 12:58 PM

Incoming first years, who have received no official communication whatsoever, are also screwed. As far as I know, we are being left to twist in the wind and take care of ourselves (no compensation, no guidance, no anything).

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102 Posted by guest | Permalink Saturday, September 27, 2008 1:09 PM

101--instead of whining on ATL about Heller and its lack of guidance, why don't you start netwoking the attorneys and shareholders you worked for over the summer? They are all (for the most part) going to move on to new platforms. Don't wait or you will lose them in the fog. If you were good enough to get an offer, you should be portable. I have received a few such emails from the last two summer classes. And ask for home contact information so you can find these people regardless of where they land. That seems to be the best way to deal with the situation. Now drop and give me 20 and stop acting like a Goddamn two-year old!

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103 Posted by guest | Permalink Saturday, September 27, 2008 1:26 PM

101, it's time to stop expecting everyone to hold your hand every step of the way and act like an adult. Sorry you're not getting your stipend, but other than that you have nothing more to complain about than anyone else involved with Heller. To the extent anyone is getting "guidance" about what to do, it's coming from partners they've worked closely with, have impressed, who have places to go and see those associates and staff members as sufficiently valuable that they want to take them with. Everyone else is being left to twist in the wind as well.

You're had a lot of notice that this was coming, and not just from the blogs. Having your start date pushed back so far should have been a really big clue that your job wasn't secure. You want the big time lawyer job with the big dollar paycheck, prove you're enough of an adult to take the abundance of guidance people here have been giving you and find a solution for yourself.

Signed,
Has tremendous sympathy for what Heller employees are going through right now, but zero sympathy for whiners who want the world handed to them on a platter.

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104 Posted by guest | Permalink Saturday, September 27, 2008 1:26 PM

Current Heller shareholder here. You hit it right on the head, 98.

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105 Posted by guest | Permalink Saturday, September 27, 2008 1:33 PM

Hey 103--102 here, nice post. I bet we know each other and I hope we land at the same place without 101.

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106 Posted by guest | Permalink Saturday, September 27, 2008 1:42 PM

102 and 103: 101 here. I'm making the point on principle. Don't assume that just because I'm doing so is also to say that I haven't been covering my own ass (which I have). Nonetheless, inappropriate behavior should be called out. If you want to attack me, don't do so by making up facts about what I may or may not be doing and then arguing accordingly. For example, how do you connect my point (which I believe to be a legitimate one) to my expecting anything to be handed to me on a platter? And to underscore something is not necessarily equivalent to whining. Instead, if you feel compelled to challenge me (for whatever reason), argue against the point I'm making: Heller's conduct throughout this crisis has not been particularly responsible or accountable (and this has nothing to do with the firm dissolving in of itself). Otherwise, you might as well keep your presumptions or made-up negative characterizations of who I may or may not be to yourself. I'm not saying what I'm saying to protect myself, who has been lucky to have been close with partners, but for those in my position who did not have the same connections to anticipate the writing on the wall far enough in advanced (and there are those people). It's really not a professional way to conduct business.

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107 Posted by guest | Permalink Saturday, September 27, 2008 1:44 PM

98, I wasn't blaming Fram. Just pointing out that he's a douche.

90

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108 Posted by guest | Permalink Saturday, September 27, 2008 1:51 PM

107--I agree, he is high-strung little douche. I hope he loses some of the Heller institutional work that he's counting on. Say what you want, the guy was a huge part of the problem when he was supposed to be part of the solution.

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109 Posted by guest | Permalink Saturday, September 27, 2008 1:52 PM

Why was WILDMAN mentioned? can someone please explain it?

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110 Posted by guest | Permalink Saturday, September 27, 2008 1:56 PM

109, I don't know for sure, but my guess is an ATL typo in the original post that subsequently was fixed.

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111 Posted by guest | Permalink Saturday, September 27, 2008 1:56 PM

101--Thanks for the rejoinder. You didn't give us that many facts to go on so the conclusions that 102 and 103 drew seemed to make perfect sense. Good luck to you, and I hope you land on your feet. 102.

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112 Posted by guest | Permalink Saturday, September 27, 2008 2:00 PM

102: I appreciate that. I'm glad that I am not misunderstood in terms of where I'm coming from . . . . I don't care for whiners either and, thus, didn't want to be confused for one ;-)

All the best to you too!

-101

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113 Posted by guest | Permalink Saturday, September 27, 2008 2:01 PM

Go to Baker.

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114 Posted by guest | Permalink Saturday, September 27, 2008 2:01 PM

Go to Baker.

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115 Posted by guest | Permalink Saturday, September 27, 2008 2:44 PM

Heller management is really piling it on. I was just awoken by FedEx on SATURDAY FUCKING MORNING with an overnight from Heller with a printed copy of yesterday's termination e-mail. CAN YOU IMAGINE TO WAKING UP TO THAT SHIT AGAIN ON SATURDAY MORNING? MOTHERFUCKERS GIVE IT TO ME IN MY OFFICE, AND SAVE THE $30 IT COST YOU TO SEND TO GIVE TO ME FOR MY GROCERIES. FUCK YOU.

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116 Posted by guest | Permalink Saturday, September 27, 2008 2:47 PM

115, I just got the same thing. Annoying, but it must be a statutory requirement or something. I don't imagine the firm was looking to shell out that extra cash right now.

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117 Posted by guest | Permalink Saturday, September 27, 2008 2:58 PM

116 is right. Definitely adds insult to injury, but they have to be able to document that they sent you the notice by means reasonably calculated to reach you.

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118 Posted by guest | Permalink Saturday, September 27, 2008 2:58 PM

Saturday fucking morning. Stay classy, Heller Ehrman.

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119 Posted by guest | Permalink Saturday, September 27, 2008 3:11 PM

117, maybe, but they could have asked us to sign acknowledgments in the office. It is pretty outrageous to spend money on overnight saturday delivery of documents we already received by email.

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120 Posted by guest | Permalink Saturday, September 27, 2008 3:13 PM

Any Heller associates out there with good news, e.g., your partner is taking you with them? I'm sure the collective would love to see at least a little ray of hope... or are the partners mostly just covering their own asses at this point and leaving the bulk of the associates to fend for themselves in a down economy?

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121 Posted by guest | Permalink Saturday, September 27, 2008 3:15 PM

What about Haslam? I know he and Fram are a team but he's always seemed like such a low key and honorable guy. I think he joined Heller in the 70's.

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122 Posted by guest | Permalink Saturday, September 27, 2008 3:16 PM

Partners are too busy figiting over which lifeboat to take to ask us to come along. Here's hoping they shit or get off the pot soon.

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123 Posted by guest | Permalink Saturday, September 27, 2008 3:22 PM

Here is one associate who was told yesterday he would not be going along withe the group. Good times!

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124 Posted by guest | Permalink Saturday, September 27, 2008 3:23 PM

120, not a Heller person myself, but a friend of mine and two other associates (including a first-year who just started, but really impressed them over the summer) are going along with one of the partners they work with. Some of the partners are decent people who are looking out for the associates they work with.

119, the problem with that is that they wouldn't be able to get signatures that day from anyone not at the office that day, or who didn't show up for the meeting, or who just refused to sign. This way, you could refuse the delivery, but they'll still have documentation that they attempted to deliver it by reliable means.

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125 Posted by guest | Permalink Saturday, September 27, 2008 3:31 PM

Sorry 123, that sucks big time.

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126 Posted by guest | Permalink Saturday, September 27, 2008 3:33 PM

Anyone who is still at Heller know what is happening with the Seattle office?

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127 Posted by guest | Permalink Saturday, September 27, 2008 3:49 PM

123, you were told by Fram's group you weren't going? He probably had his group figured out before he jumped. The partners can't make offers before they have their own jobs secured.

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128 Posted by guest | Permalink Saturday, September 27, 2008 4:11 PM

The remaining partners can't make offers before they have jobs secured. The process for hiring partners is intense at most firms. Candidates need to have business plans that include business book, pass client conflicts, meet with executive committee members at multiple offices, etc. And if you didn't know you would be looking for a job, you probably don't have an up-to-date business plan. That's the beginning of the process.


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129 Posted by guest | Permalink Saturday, September 27, 2008 4:46 PM

They can't make offers but they know and have presented their hiring plan and CV's of associates to to the new firm.

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130 Posted by guest | Permalink Saturday, September 27, 2008 4:46 PM

They can't make offers but they know and have presented their hiring plan and CV's of associates to to the new firm.

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131 Posted by guest | Permalink Saturday, September 27, 2008 4:46 PM

They can't make offers but they know and have presented their hiring plan and CV's of associates to to the new firm.

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132 Posted by guest | Permalink Saturday, September 27, 2008 4:47 PM

They can't make offers but they know and have presented their hiring plan and CV's of associates to to the new firm.

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133 Posted by guest | Permalink Saturday, September 27, 2008 5:06 PM

Can they make offers? Have they presented their hiring plan and CV's of associates to to the new firm?

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134 Posted by guest | Permalink Saturday, September 27, 2008 5:10 PM

New firm can say "no" to bringing assoc. they think cost too much.

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135 Posted by guest | Permalink Saturday, September 27, 2008 5:15 PM

This is 98, the former Heller associate.

Just in case any of you asking questions are actual Heller associates, here's a tip -- if a senior shareholder hasn't already told you that he/she will make sure you have a job at whatever firm he/she ends up at, don't count on it happening.

The shareholders are going to be (understandably) looking out for themselves, and at a lot of firms there are associates looking for work.

If I was still at Heller, I'd go into the offices of the shareholders I knew best and have a very blunt talk with them about what's going on. If you aren't close enough to do that with a shareholder that has a book of business, don't count on him/her helping you anyway.

And no matter what the shareholders say, have a Plan B. If you're a junior associate, work your ass off to get a job at another firm. If you're a senior associate, you're probably better off going to government, because you're not going to start from scratch at a new firm and make partner in the next few years. Ride out the next few years in government and then try to go back to private practice later, when the economy is better and you have more to offer a potential employer.

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136 Posted by guest | Permalink Saturday, September 27, 2008 5:32 PM

93 here,

this is what i'm talking about. warned in a video conference? warned on the blog sites? sent an email? sent a fedex?

when does management grow the balls to face the people they've worked with IN PERSON for over 20 years?

i dont know of a SINGLE warned individual that was warned in person.

fucking lame

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137 Posted by guest | Permalink Saturday, September 27, 2008 5:43 PM

I've heard things changed when Lynn Kirk and her kabal came 3 yrs. ago. Marketing and communications group -- good job. Call Heller for references Lynn.

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138 Posted by guest | Permalink Saturday, September 27, 2008 6:42 PM

Lynn Kirk? what an idiot. Makes Sarah Palin look like Madame Curie. Memo to self: if my new firm hires any manager from DLA Piper, run like hell.

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139 Posted by guest | Permalink Saturday, September 27, 2008 6:42 PM

I doubt 123 was told (s)he wouldn't be joining Fram's group. Fram et. al. aren't dumb, they're busy. And they know that if they tell associates on Friday that they're S.O.L. come next week those associates won't have any incentive to work over the weekend. Better to string associates along and extract that last erg of work if they can. It's more likely Fram and Crew won't say a thing, ever. They'll just leave Tuesday night. Ten minutes later the motion sensors will turn the lights off in their offices. The End.

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140 Posted by guest | Permalink Saturday, September 27, 2008 6:53 PM

139 Not so fast kemo sabbie, several IP associates have already interviewed with, and had offers accepted at Covington. If you have not received a Covington tap, you are SOL.

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141 Posted by guest | Permalink Saturday, September 27, 2008 7:03 PM

DC's IP Lit partners are gone, but several of the associates in the group were left behind.

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142 Posted by guest | Permalink Saturday, September 27, 2008 7:36 PM

141 They packed up today? If true, classic from a classless bunch.

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143 Posted by guest | Permalink Saturday, September 27, 2008 7:40 PM

136, I expect the problem was that with everything going on, the management did not have the time to tell people individually. They seemed to do their best with the videoconference, but individual meetings would take forever, and there is more than enough for them to do right now.

I have an unrelated question, re: vacation time. The email says that people with accrued vacation time may have it scheduled before November 28. Does this mean that people will be asked to take their vacation (rather than show up to work with nothing to do and continue to accrue vacation)? I can't imagine one would be able to accrue all that much vacation over 2 months, so it wouldn't make a huge difference to the bottom line, but was just curious about whether that is standard (or allowed).

Also, what are bumping rights?

Signed,
Not an Employment Attorney, but curious

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144 Posted by guest | Permalink Saturday, September 27, 2008 7:57 PM

Bumping rights have to do with the ability to take over the position of a more junior co-worker if your position is eliminated due to downsizing. Generally, unless you're union, you have no bumping rights.

The vacation issue doesn't have to do with accruing new vacation time, it's to force people to use their paid time off before November 28 (when the firm has to pay them either way), rather than the firm having an obligation to pay those people for unused vacation time lump-sum at the end.

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145 Posted by guest | Permalink Saturday, September 27, 2008 8:10 PM

If you haven't been tapped by a rainmaker yet (not just the Covington folks), are you basically SOL?

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146 Posted by guest | Permalink Saturday, September 27, 2008 8:11 PM

Thanks, 144. Can companies force people to take vacation time if they don't have work for them to do?

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147 Posted by guest | Permalink Saturday, September 27, 2008 8:31 PM

145 Not necessarily Many SHs are mulling their options, including doing nothing and being absorbed by some of the larger firm options out there (Baker, Winston, etc)

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148 Posted by guest | Permalink Saturday, September 27, 2008 8:49 PM

141/142 - where did the DC IP partners go?

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149 Posted by guest | Permalink Saturday, September 27, 2008 9:14 PM

In the Seattle office the Shareholders have been very up front with us since the Tuesday following the failed Mayer Brown merger. We were very hopeful a solution would be found and new that the Shareholders were working hard to find a solution. The Seattle office will probably split off in different groups and find homes at other firms. A lot of the staff will be included in those moves. A lot of the associates will be included in those moves.

My heart goes out to everyone at Heller Seattle.

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150 Posted by guest | Permalink Saturday, September 27, 2008 9:15 PM

What ever happened to Darryl Snider in Heller's LA office? Wasn't he one of the big mucky mucks who was Larrabee's buddy?

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151 Posted by guest | Permalink Saturday, September 27, 2008 9:24 PM

I've been with Heller for almost 20 years. And the old Heller it is not. It seems someone was brought in and convinced the "Management" that bigger was better, and hung the carrot of bigger "PPP" in front of all the Shareholders. They brought in "fad" groups of money makers. Whoever was bringing in big bucks "at the moment." Somewhere along the line it all became about the money. That's was destroyed Heller's culture. I'm pretty sure most of the people in the Seattle office who have been there for more than 10 years (attorneys and staff alike) have felt this for years. It's sad that so many law firms are now running their shops as "businesses" instead of law firms.

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152 Posted by guest | Permalink Saturday, September 27, 2008 9:28 PM

There is a lesson here about the "national practice model" adopted by many large firms now, and the consequences that model poses for attorneys in smaller market offices. The model is good for PPP, since it lets the firm charge premium rates for attorney work in small market offices, and that premium rate structure allows partners in the small market offices to be overcompensated in comparison to their peers in the small market. But it leaves those partners without a strong local client base, since the premium rates are out of kilter with the local market. It becomes a sort of golden handcuffs for the small market office partners, unless they are able to jump to larger markets.

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153 Posted by guest | Permalink Saturday, September 27, 2008 9:35 PM

#152. Very true. I've been hearing talk about the Seattle office being priced out of the local market for about four or five years now. I'm not sure what other Heller offices were are also in that position.

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154 Posted by guest | Permalink Saturday, September 27, 2008 9:39 PM

Daryl Snider "retired" at the end of 2007, got his capital back, and then reappeared at Shepherd Mullin in August. Brilliant and ruthless move. What a d*ck. His efforts at making Heller raise its rates through the roof in the early-2000s did not help matters.

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155 Posted by guest | Permalink Saturday, September 27, 2008 9:45 PM

As far as the IP Litigation group leaving as they did, it really did seem to be the straw that broke the camel's back. The departure apparently violated some term(s) of Heller's banking arrangements. Did the IP Lit group know that would happen? Maybe. Maybe not. It seems many, many Heller Shareholders were blindsided by that news. So, I think it might be within reason to think that maybe the IP Lit group was unaware of what consequences might be.

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156 Posted by guest | Permalink Saturday, September 27, 2008 9:48 PM

154: Amazing. And you're right - I believe the Seattle office fought him very hard with regard to the rates issue. But as usual he got his way - due to the fact that he had Larrabee's ear.

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157 Posted by guest | Permalink Saturday, September 27, 2008 9:52 PM

oooooooo WILDMAN

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158 Posted by guest | Permalink Saturday, September 27, 2008 10:22 PM

DC IP went to Covington along with the rest. Not sure if they've started, but they're off the Heller web page as of Friday.

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159 Posted by guest | Permalink Saturday, September 27, 2008 10:40 PM

155: I thought it was known that the loan covenants were linked to partner departures.

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160 Posted by guest | Permalink Saturday, September 27, 2008 10:43 PM

153: True at Heller Seattle for several years, also now for Perkins which has gone the national practice model.

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161 Posted by guest | Permalink Saturday, September 27, 2008 10:54 PM

#159 -- Maybe it was known on some level. If it was, I really get the sense that none of them were thinking about it or how close they were to the threshold. I can tell you, though, the Shareholders I work closely with were taken by complete surprise.

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162 Posted by guest | Permalink Saturday, September 27, 2008 11:07 PM

161: I believe it. Perhaps this is a case of the lack of communication we've heard about. With only $6 million in liquid assets and the credit markets seized up, you'd think that the focus would be on retaining liquidity and what that required.

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163 Posted by guest | Permalink Saturday, September 27, 2008 11:16 PM

I left Heller many years ago & took the time tonight to look at the webpage to recall the shareholders who were in the SF office 15 or 20 years ago and still remain. I was impressed then, and am to this day, at how truly bright and dedicated and thoughtful and high-minded a group this was. It is unbelievable to me that so strong and solid a group could now be airborne.

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164 Posted by guest | Permalink Saturday, September 27, 2008 11:29 PM

#162: They couldn't see past the merger opportunities. After all, who WOULDN'T want to acquire an institution like Heller? Awesome attorneys, awesome engine that makes it run (i.e., staff).

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165 Posted by guest | Permalink Saturday, September 27, 2008 11:31 PM

159: I too sense from the Shareholders I work closely with that they were taken by surprise.

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166 Posted by guest | Permalink Saturday, September 27, 2008 11:44 PM

164: You are right. But the merger "opportunities" were not on Heller's side of the table. Baker did to Heller what it did to Coudert, waltz it down the aisle until it was past the point of recovery, and then walk away. The assets are cheaper that way.

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167 Posted by guest | Permalink Saturday, September 27, 2008 11:52 PM

#166: And now Baker is cherry-picking. Perfect! For them. Looking at it in that light, I hope I'm not one of the ones that end up going with a group to Baker.

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168 Posted by guest | Permalink Sunday, September 28, 2008 12:00 AM

Another Heller alum logging on. To 167 and others, there is a reason you joined the firm, and the values you prized then have not changed -- even if the recent Heller leadership lost sight. You will end up in a different place, but those values remain the same, and it becomes your job to live them in your new firm. Most Americans will have a dozen different jobs in their lifetime now, and events like this week's show that attorneys will be no exception. Heller taught you what it was to be a great attorney -- now teach others wherever you go.

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169 Posted by guest | Permalink Sunday, September 28, 2008 12:06 AM

Mayer is picking cherries too. Let's not leave out Winston & Strawn. Management's plan for merger was a recipe for disaster.

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170 Posted by guest | Permalink Sunday, September 28, 2008 12:07 AM

#168: Well said. But I wonder if it isn't the way of the entire legal industry right now. Will it be any different somewhere else. I wonder. I've been so long at Heller and the attorneys I worked for before Heller were of the same mind as "old" Heller. I remember one of the attorneys I worked for long ago couldn't bring himself to raise his rates to $75 an hour. He was, after all, making plenty of money just charging $50 an hour like he had been for so long. Those days are certainly days of the past. I often wonder what that particular attorney charges now. It was so much better when attorneys loved practicing law and it wasn't so much about the money. If you were good, you made plenty of money.

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171 Posted by guest | Permalink Sunday, September 28, 2008 12:09 AM

167, that's what nearly always happens in these kind of cases. There's simply no reason for a firm to take on all the assets and liabilities of a target if the target is struggling. In the law firm context it's much, much easier to just cherry-pick the assets you want and carve them out of the whole.

And I wouldn't count on going with anyone if I was a junior associate. When the acquiring firm has excess capacity anyway (as most firms do - certainly at places like Mayer Brown), a lot of the value in bringing in a lateral is in increasing the utilization of underused assets. There will be people with loyalty and more senior associates who are important to client relationships, but other than that, I wouldn't get my hopes up.

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172 Posted by guest | Permalink Sunday, September 28, 2008 12:35 AM

#171: 167 here. I am not an attorney. I'm one of Heller's very valuable staff. I'm an important part of the equation in my attorney's client relationships. Don't underestimate the value of staff.

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173 Posted by guest | Permalink Sunday, September 28, 2008 12:51 AM

Some partners did share the true state of affairs with trusted associates in their group. Only when the Mayer merger fell through, which was very late in the game.
And I know a partner who is working to take several of the associates in his practice area with him to his next firm. This is more likely, though, if there is a specialized area of practice. Much less likely for general litigation or general corporate.

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174 Posted by guest | Permalink Sunday, September 28, 2008 1:31 AM

I interviewed at Heller NYC a few years ago as a 3d year lateral. I didn't get an offer. Who knows what really happened, but the feedback was that all the lawyers thought I did just fine, but that legal hr - I had a 30 min interview with them - didn't think I showed enough Heller enthusiasm.

What the f was wrong with these people? I guess they needed cheerleaders like I was preparing for camp color wars or something (a California thing?).

The f'd up thing is that I probably would have accepted. Good thing I didn't. Nice management - really.

Sincerely though, I wish all associates from Heller the best of success. Good luck to you all. The Shareholders can stuff it.

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175 Posted by guest | Permalink Sunday, September 28, 2008 1:46 AM

lol @ 172...valuable staff. you're basically napkins in the lunchroom.

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176 Posted by guest | Permalink Sunday, September 28, 2008 2:04 AM

175: In situations like this, isn't pretty much everybody a napkin (most shareholders, associates and staff alike)? Aren't these firms just napkin holders?

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177 Posted by guest | Permalink Sunday, September 28, 2008 2:10 AM

175 is a fool. He'll eat those words some day -- if he manages to stay in practice long enough.

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178 Posted by guest | Permalink Sunday, September 28, 2008 3:07 AM

176 - Amen to that!!! There are some - not many, but some - beginner lawyers that have No Clue about the value of their staff. But they will learn soon enough, and when they least expect it. For them the going will get tough when they need to lean on their staff to CYA only to realize then that the staff has shunned when you need them most. I've seen it happen over and over.

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179 Posted by guest | Permalink Sunday, September 28, 2008 3:08 AM

Sorry - meant to say 177 - amen to that, etc.

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180 Posted by guest | Permalink Sunday, September 28, 2008 3:11 AM

143 - We asked our local HR person about the e-mail's wording re vacations. He checked for us and reported back that it was just poorly worded. No one will be forced to take vacation, the e-mail was just noting that we are able to use vacation days in this period if we want.

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181 Posted by guest | Permalink Sunday, September 28, 2008 3:13 AM

124, if you are referring to the" first year that really impressed over the summer"- to the one I think you're talking about? - yeah - good blow.

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182 Posted by guest | Permalink Sunday, September 28, 2008 7:59 AM

181, I doubt we're thinking of the same person. This person truly made her impression through the quality of her legal work, and nothing else.

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183 Posted by guest | Permalink Sunday, September 28, 2008 9:37 AM

174 - HR people are f'ing worthless at any firm. WTF does " enthusiasm" mean? Unless it is niche or extreme top of the market, the work is the same and clients and books of business are unstable.

Zero respect for HR. They should have gone to consulting firms.

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184 Posted by guest | Permalink Sunday, September 28, 2008 11:23 AM

175 -- you're the people we "napkins" watch for. Your elitist attitude has most likely already been noted. We "napkins" have tolerated it for years because we respect and are loyal to the Shareholders we work for. We work hard to help build and maintain their practices and behind doors work to keep them calm so they don't go totally ape on you when you screw up. Keep it up. The "napkins" at the next firm will spot you soon enough.

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185 Posted by guest | Permalink Sunday, September 28, 2008 12:05 PM

This is no reflection on the addition of the new editor, but this site has become the home of childish non-sense. Look at the comments up and down the line here. Is there anyone here who has actually graduated high school?

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186 Posted by guest | Permalink Sunday, September 28, 2008 12:14 PM

Junior Heller Assoc here, 135 is spot on. If there is a lesson to be learned here for other associates out there, make sure you are developing relationships not only with the Partners at your firm, but with the clients as well. It will help you tremendously in terms of marketability.

The problem with being a Jr assoc is that you rarely have an opportunity to be a part of anything so significant that a Partner absolutely can't live without you if they choose to go somewhere else.

I actually did make an effort to reach out to partners throughout my short time here but nothing ever really came about in terms of assignments. I got the same old answer - It was always "hey thanks for reaching out, I'll keep you in mind for any future work." As a result, I am in the MAJORITY of junior associates like 123 who are NOT going to be riding the coattails of any Partner into the promised land when they leave Heller in 60 days.

Moral of the story - look out for #1 at all times in this profession. Don't count on other lawyers to have your back and always always always have an exit strategy.

123 - I absolutely feel you. Good times indeed.

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187 Posted by guest | Permalink Sunday, September 28, 2008 12:29 PM

Alabama = TTT

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188 Posted by guest | Permalink Sunday, September 28, 2008 12:37 PM

I'm certain everyone involved in sinking HE, including Larrabee, graduated from high school and then some.

#186 is spot on. In addition, how the firm is managed might now be a consideration in looking for a firm.

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189 Posted by guest | Permalink Sunday, September 28, 2008 1:17 PM

Charlie Munger would never let this happen.

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190 Posted by guest | Permalink Sunday, September 28, 2008 1:46 PM

The corporate and litigation service legal market is segregating into two general groups of firms: the 5 to 150 attorney quality local/regional firm, where attorneys bill at $x/hr and are paid $y/year, and the international firms where attorneys bill at $2x or 3x/hr and are paid $2y to 6y/ year. As a new law grad, you will need to make a decision about which path you prefer. The international firm pays better, but you forego the opportunity for client development and the ability to have greater control over your own destiny in an evolving market (ie, client relationships). On the other hand, you can move much more easily from the international firm to the regional one than the other way around (or than from one region to another). So in choosing the regional firm, you are making a more significant long-term commitment to a geographic area. These choices will, however, be clearer in the years ahead than they have been in the past.

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191 Posted by guest | Permalink Sunday, September 28, 2008 3:09 PM

Hey 180, which H.R. person said that? I know a lot of people are stressing out over that statement, and if it is as innocuous as "you may take vacation during this time," I sure would love to hear that from the horse's mouth.

Has anyone else heard anything regarding the last sentence of the first paragraph in the WARN Notice email?

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192 Posted by guest | Permalink Sunday, September 28, 2008 4:06 PM

190, your definitely on the right track. The 300-400 lawyer "national" firm is an endangered species nowadays for a variety of reasons. Too expensive to service small clients and usually not big or deep enough to compete for the truly high-end corporate and litigation work.

The regional firm route is the one I took. I've never worked at a behemoth interational firm so I can't speak personally, but I do know we have a lot of partner-level refugees from those types of firms. We can attract quality people because, in exchange for less money, we offer a true lifestyle alternative. Partners here are all gone by 6 or so every night. Associates are usually not far behind unless it is busy time. I can actually develop business as an associate because my rates are low enough I don't scare away smaller clients. But I'm in a practice area that's less labor intensive than large scale litigation and corporate deal making. So take it for what its worth.

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193 Posted by guest | Permalink Sunday, September 28, 2008 4:18 PM

If any of you had any idea how much Heller HR jumps through hoops to make sure you (the very same people spewing the toxic venom about them) get every little thing your hearts desire - you might have a very different opinion. Oh wait - the folks spewing the venom must be the few who were told no.

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194 Posted by guest | Permalink Sunday, September 28, 2008 4:31 PM

190 - I disagree. The most profitable firms (and as a result, the most lucrative for rising associates) will be those that have relatively small partnerships that are centered around the major financial hubs (ie New York and London).

At the end of the day, there isn't a substitute for talent. And the most talented lawyers will always gravitate toward the firms that allow them to maximize their returns on legal services. And more often than not, these firms won't be the large international firms but rather the smaller, more focused shops that are subject to less overhead and political lockups.

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195 Posted by guest | Permalink Sunday, September 28, 2008 4:44 PM

For all the bashing of the NY office/Fram's vote of no confidence, does anybody know anything about the costs of some tactical moves made in the DC office, e.g., paying $$$ for Mark Schildkraut a few years ago or acquiring scattered practice groups (int'l trade, ins. recovery) if the opportunity was right even if there was likely no "fit," and worse, the decision to look further east, i.e., London? I don't think Ted Henneberry came cheap and they had to have sunk millions into developing that office.

Good luck to all associates. Our fingers are crossed for you.

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196 Posted by guest | Permalink Sunday, September 28, 2008 5:33 PM

Not to mention the expense of the new 90 attorney DC office.

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197 Posted by guest | Permalink Sunday, September 28, 2008 7:14 PM

Wait until the slow down from all the business from the wall street crisis hits the NYC firms. I predict at least a dozen "named" firms will be out of business before its all said and done.

Glad I've been saving my pennies.

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198 Posted by guest | Permalink Sunday, September 28, 2008 9:44 PM

Why do they capitalize the in "The Firm"? I'm not a fan.

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199 Posted by guest | Permalink Sunday, September 28, 2008 9:51 PM

In all seroiusness, how are Heller associates doing? After Brobeck, I knew of some summer associates that even landed at the same firms are partners with whom they worked during the summer.

What is the rough percentage of associates being left in the lerch? Have people been running around and sending emails to see if they are going to be taken care of by the partners with whom they worked?

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200 Posted by guest | Permalink Sunday, September 28, 2008 9:56 PM

If a HEWM attorney still appears on the firm website, is it safe to assume that they haven't landed elsewhere yet?

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201 Posted by guest | Permalink Sunday, September 28, 2008 10:10 PM

200, I would be surprised if updating the webpage was a priority right now. And, to answer your question: Not necessarily. There could be some associates who have received other offers but who are staying at Heller until the end, or joining their new firm after the new year (taking December off), etc., in which case they would still be listed.

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202 Posted by guest | Permalink Sunday, September 28, 2008 10:32 PM

It's a silly point, but I agree with 198. I've seen a lot of defined terms and never one with "The" capitalized.

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203 Posted by guest | Permalink Sunday, September 28, 2008 10:53 PM

200, even the partners and associates going to Covington haven't gone yet -- that happens Tuesday. So to answer your question, "no."

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204 Posted by guest | Permalink Sunday, September 28, 2008 11:24 PM

to anyone who worked in Heller's NY Office ...

Anybody wanna take a guess on what Andrew Ben-Ami was doing for a living the last five years?

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205 Posted by guest | Permalink Monday, September 29, 2008 12:09 AM

For junior associates everywhere: Develop a specialty area of practice! That is by far the best and easiest way to ensure your future employability. General civil litiation, general corporate: these are areas of work that will always lead to limited re-marketability, because there are so many (fungible) others already out there with good qualifications and some experience. Go for labor, IP, bankruptcy, Something! -- that distinguishes your capabilities and experience from the crowd.
.
Believe me, I know. I've been 'dining out' for 20 years on a law review note in a specialized area (last cited by an appellate court last year, Still true that nobody else has written on it at serious length). 'Specialize -- that's why the Good Lord made your eyes!' (with tip of the hat to Tom Lehrer)

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206 Posted by guest | Permalink Monday, September 29, 2008 1:31 AM

Right, 205. Junior associates need to make decisions throughout to maximize their prospects for success: specialty practice area; a firm with good chance for partnership (even if it's a more regional firm); getting as close to clients as possible; getting real work opportunities. . . It all pays off.

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207 Posted by guest | Permalink Monday, September 29, 2008 1:34 AM

175 isn't the sharpest tool in the shed, huh?

As an associate, you need to impress the partners and the clients to stay employed - or at least, to be in high demand.

To do that, you need support - I don't care who you are or what practice group you're in, at some point, you'll need a secretary, or a paralegal, or the mailroom, or WP, or IT or some other "napkin" to save your ass. And oddly enough, all of those folks tend to work just a bit harder for someone they like and want to see succeed than they would for someone they hate and would love to see fail. I know I've benefited a time or two from being the former (which is a nice side effect of just acting like a decent human being). Somehow I think you'll figure out your the latter a bit too late to do anything about it.

Cheers.

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208 Posted by guest | Permalink Monday, September 29, 2008 1:43 AM

(205 here: ) "just acting like a decent human being" turns out to be generally good advice for being a successful attorney. Many (not all) at Heller practiced that rule, and it's part of what made it a great place to work. I didn't have to compromise on that while I was there (whether dealing with colleagues, opposing counsel, firm staff, court staff -- even opposing clients [when they weren't idiots], and it's one of my best memories from my time there.

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209 Posted by guest | Permalink Monday, September 29, 2008 9:48 AM

205, many structured finance associates would disagree

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210 Posted by guest | Permalink Monday, September 29, 2008 9:48 AM

205, many structured finance associates would disagree

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211 Posted by guest | Permalink Monday, September 29, 2008 10:08 AM

#5. I've seen this mistake here before: UPenn is not Penn State. UPenn (known as Penn) is an Ivy League university in philadelphia with ONE law school campus, also located in Philadelphia. Penn State is a state school that does not have a law school campus in Philadelphia. Got it?

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212 Posted by guest | Permalink Monday, September 29, 2008 12:36 PM

Lifting Heller's spinster's veil yet again. See http://www.evilesq.com


http://blogs.wsj.com/law/2008/09/26/heller-associate-to-law-blog-i-dont-need-to-show-up-anymore/

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213 Posted by guest | Permalink Monday, September 29, 2008 1:07 PM

212 needs to put down the glue and get a fucking life

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214 Posted by guest | Permalink Monday, September 29, 2008 1:09 PM

Thanks 207

You really understand how working with support staff in a large law firm is supposed to be - you are the kind of gal/guy we go out of our way for

Heller Drone
http://hellerdrone.wordpress.com
Heller Highwater

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215 Posted by guest | Permalink Monday, September 29, 2008 1:18 PM

Speaking of failing SF firms, Thelen just lost 20 more attorneys today to Pillsbury. How long before Thelen dissolves now? A month?

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216 Posted by guest | Permalink Monday, September 29, 2008 1:27 PM

the vultures have been circling Thelen for months now, even before Heller. Give them two more weeks before you can stick a fork in 'em. Further, that quote about Heller trying to morph into a NY firm is dead-on; most of the attorneys did not go to a NY firm for a reason and weren't interested in working for a terrible facsimile thereof.

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217 Posted by guest | Permalink Monday, September 29, 2008 5:25 PM

I wasn't asked to go to Covington, but I need to find a job. Do you think Rob Fram will be a reference for me?

-Matt Larrabee

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218 Posted by guest | Permalink Monday, September 29, 2008 5:51 PM

FIRST!!

-Matt Larrabee

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219 Posted by guest | Permalink Monday, September 29, 2008 6:08 PM

209: yes, specialty to go for is an important question. Structured finance is a good example of a specialty lacking application generally. On the other hands, some specialties -- such as labor -- are more stable through good times (compensation work, etc.) and bad (terminations, etc.).

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220 Posted by guest | Permalink Monday, September 29, 2008 7:11 PM

Have any former incoming associates heard about job opportunities with Heller people at the new firms?

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221 Posted by guest | Permalink Monday, September 29, 2008 9:53 PM

Rob Fram is a douche.

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222 Posted by guest | Permalink Monday, September 29, 2008 11:12 PM

221, wtf? are you saying Rob Fram comes in handy when you're feeling "not so fresh"?

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223 Posted by guest | Permalink Tuesday, September 30, 2008 9:02 AM

220: Not that I've heard of.

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224 Posted by guest | Permalink Tuesday, September 30, 2008 10:54 AM

222, no, I'm saying that when someone is too big a pussy to do their own dirty work, Fram (who has no qualms about being a prick) will come in and do it and let the pussy come out smelling squeaky clean.

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225 Posted by guest | Permalink Tuesday, September 30, 2008 12:56 PM

Very sorry to hear this sad news. Accrued vacation time legally must be paid, I believe.

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226 Posted by guest | Permalink Tuesday, September 30, 2008 3:11 PM

Any news on firms offering to pick up Heller offices? Heard that Winston, Orrick and Baker were in the mix.

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227 Posted by guest | Permalink Tuesday, September 30, 2008 3:47 PM

So what happens to Larrabee and Levin, etc. now that their names have been dragged thru the mud? Do they have a soft landing in their future?

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228 Posted by guest | Permalink Tuesday, September 30, 2008 4:00 PM

Larrabee is booking gigs as a motivational speaker.

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229 Posted by guest | Permalink Tuesday, September 30, 2008 4:07 PM

Larrabee is booking gigs as a motivational speaker.

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230 Posted by guest | Permalink Tuesday, September 30, 2008 5:25 PM

Disclaimer:

I worked at Heller for well over 7 years. When I arrived at Heller they were on the top of the charts and I watched, sadly, as the firm slowly collapsed. This commentary is based on what I saw and experienced while being employed there. I worked in both an administrative capacity and as a general employee.

Experience:

I have/had worked at law firms for nearly 15 years by the time I landed at Heller. I have worked at large law firms and small law firms and my previous employment at a satellite office of a large firm, though enjoyable, left me feeling like I was a small cog in a big machine. The managing partner did not know my name and the rumors of merging caused me to jump ship to Heller.

The early years:

My entrance into Heller at the initial outset was a good one. They were riding high and doing great business. My office (I was, again, in a satellite office), was the “jewel in the crown” and it was not uncommon for the shareholders and associates to bill well over 100% of their time. During this period of growth, the office I was in was able, due to its success, to allow Heller to expand in other cities and provide a cushion, if you will, for those offices that were having a slow time “ramping up.”

During these years the office I was located was basically allowed to do what we wanted. We were able to suggest policies and procedures and many of our ideas were accepted as firm-wide policies.

The shift in business:

Then came what I felt was the downfall of Heller. In 2003, if I remember right, I was in a meeting of all the attorneys. It was announced at this meeting that the firm was going to “shift” its priorities. The new direction was to focus on those big clients. Become a “one stop shopping” for them. The firm was going to spurn small businesses – deals under $50,000 or so and pass those off to other firms we had relationships with. The thinking was that we did 75% of our business for the top 20 clients. The plan was to bring in other attorneys, special counsels, etc. and start “selling” ourselves to the clients: “Why take your business ____ when we can do it here?!”

Two problems with this:

1. Heller had/has a mindset of billable time that doesn’t fit in terms of market. You can charge X amount of dollars in New York but you can’t charge the same X amount of dollars in Seattle or Anchorage and, soon enough, there were issues with the “Special Billing Rates” or, “Sprates” as they became called. The Client might not mind spending $300 per hour for Heller to do litigation but they might have an issue of spending $300 per hour for Heller to do tax research. This was a CONTINUAL problem with the office as more “Sprates” became the norm. This also caused issues in the head office in terms of resentments between offices. As much as Heller always did a great job of cross pollination of offices and getting attorneys involved – the issue of billable hours and what was charged was a bur under the saddle of the accounting department. This was an issue that, I don’t think, ever got resolved.

2. Heller did not take into account the relationships these clients had with other offices. And though they expected (hoped?) that the client would be more than willing to shift their other types of business to Heller – it did not really happen. Thus some of the Special Counsel attorneys or associates hired specifically to provide that service quickly found themselves out of billable work to do.

The Associate Problem:

This new focus had a quick adverse affect on the associate core. Soon after this announcement I met with a well liked long time shareholder who was in the process of leaving. I asked him his opinion and gave him my own. In all the years I’ve worked in law, there was a standard operating procedure in terms of the “shareholder” or “partner” track. Basically it was this:

1. Get out of law school and enter law firm.
2. Work on cases, assist Shareholder/Partner in the process of work.
3. Shareholder/Partner mentors the Associate on the rules of law and how to navigate the law firm mentality.
4. Shareholder/Partner shows Associate how to drum up business, create client networking opportunities, work the system and create long lasting fruitful relationships.
5. Associate starts to bring in a small book of business.
6. Associate’s book of business starts to provide more business for the attorneys in the firm.
7. At some point the Shareholder/Partner Committee looks at what the Associate as brought to the firm and after careful evaluation they decide to make the Associate a Shareholder or Partner.

With this change of focus in the Heller mentality, this was no longer a viable methodology. To what, then, were the Shareholders going to judge the associates? The only thing they could really track, and that was billable hours. So, basically, if you wanted to become a Shareholder at Heller you better bill a helluva lot of billable hours. If you wanted a life – don’t look at Heller.

When I posed this scenario to the exiting Shareholder he confirmed that I was, indeed, correct in my thinking.

I was not surprised when quite a number of associates left soon after this change of thinking went into play. And who could blame them?

Creation of Practice Groups:

Or, what I refer to as: “Putting square pegs into round holes.”

Within a year or two of this re-thinking of client support, the market had seemingly collapsed and Heller was in a state of disarray. It began to shut down some offices and the billable hours were no where near the “glory days” of over 100%.

When something bad happens, you usually return to those things that make you feel stable. Whether it’s Mom, Apple Pie and Baseball – Law Firms go back to hunkering down and re-thinking. And that re-thinking was to try and regroup into one juggernaut firm.

Thus the creation of Practice Groups.

Though they had been around in some way shape or form for some while the firm made a push to implement them in a more forceful way thus creating a layer of bureaucracy that had not been in existence.

And if you’ve got a litigation practice group, and a business practice group, why not create practice groups for departments, too? Marketing department, Records department, Accounting department, Human Resources, etc. Suddenly creating a level of middle management that had not been there before.

In all my years of working in law the one thing I’ve seen of most middle managers, though not all, is that they spend their time doing “job justification” instead of actually doing their job. “Job justification” is usually defined by creating work that is neither important nor needed but sounds good. Implementing policies that either aren’t thought through, or don’t work. And then forcing un-thought-through processes on the very people they are designed to help. Causing untold anger and friction.

What about the Shareholder Bonuses?:

Ahh, yes, the final nail in the Heller coffin. Doesn’t it always come down to money?

By late 2006 the firm had begun looking for ways of bringing in more business. Sending attorneys around the country, trying new things, creating more relationships. Or attempting to. With little success.

It was the goal of the managing shareholder to provide bigger bonuses to the shareholders. But how? The easiest way was to shrink the people taking pieces of the pie but you can’t just layoff workers who provide such important support. Nope? You find a way around it. You out-source them.

Within two years most every support department (not counting Secretaries and Paralegals) had been outsourced and the rumor of million dollar bonuses was being spoken about in certain circles.

What this did, though, was create another layer of disconnection between staff and attorneys. Where everyone was “in this together” – a sudden “us v. them” mentality started to be created. For those who had NOT been outsourced, the interaction of employees that were Heller and now were no longer Heller but still roamed the halls was viewed as: “Well, that’ll be me in a couple months.” Employees who had been outsourced felt more like numbers instead of names – not only were they treated differently, they were not able to participate in some things such as “staff appreciation” or “holiday bonuses” – thus creating another level of discontent. The outsourced members felt like “second class citizens.”

Don’t underestimate the brains of your employees:

When I was still at Heller (I have since left) the staff knew everything that was going on. As much as the management and shareholders tried to keep them in the dark – the staff knew far more than the management realized. Suzie Secretary didn’t get where they were with a 50 IQ. But, sadly, management continued to treat the staff like they were idiots. (Case in point, before I left there was a “mandatory” meeting with some of the upper management that didn’t bother to tell everyone what the meeting was about – turns out it was a “tell us your issues” meeting – but it left more people frustrated and angry than “listened to.”) Staff gives up their lives for a company – the company needs to respect them enough to be honest with them – damn the ramifications.

Final comment:

Heller WAS good place to work. I will miss it and my many friends who worked there. But I will not miss incompetent middle managers who did nothing.

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231 Posted by guest | Permalink Wednesday, October 1, 2008 1:06 AM

Nice job, 230.

IMHO, your best paragraph is:

In all my years of working in law the one thing I’ve seen of most middle managers, though not all, is that they spend their time doing “job justification” instead of actually doing their job. “Job justification” is usually defined by creating work that is neither important nor needed but sounds good. Implementing policies that either aren’t thought through, or don’t work. And then forcing un-thought-through processes on the very people they are designed to help. Causing untold anger and friction.

I heard from office and regional managing shareholders that they were receiving upwards of 75 emails every day from admin staff who were just churning the work to keep themselves looking busy and important. That's just silly.

Anyway, very good analysis of some of what went wrong. And you're right -- Heller Ehrman was a good -- no, a great -- place to work when it was still being true to its culture. I'll miss it too. Good luck to everyone looking for a new firm.

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232 Posted by guest | Permalink Wednesday, October 1, 2008 7:21 AM

230 and 231: I hear you on all fronts. As to middle management, however, it may be that Heller Ehrman just didn't hire that well. I can't imagine leaving certain processes in the hands of lawyers, widely-known to be among the most incompetent managers.

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233 Posted by guest | Permalink Wednesday, October 1, 2008 1:51 PM

The middle management bashing throughout the Heller posts is a bit much. I know everyone wants someone to blame, but let me pose this question: if middle management is to blame for the collapse of Heller, then why are the other AmLaw 100 firms still solvent? I've worked at a number of them and they all have the same basic management structure. Google tells me it was Catheirne the Great who said 'I praise loudly, I blame softly.' Apparently, some folks at Heller could use a dose of that medicine.

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234 Posted by guest | Permalink Wednesday, October 1, 2008 3:29 PM

233 = Suzanne Hawkins, Chief of Practice Excellence (aka the poster child for what went wrong at Heller).

Hey Suzanne, instead of terminating the Lexis contract, why don't you terminate your contract?

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235 Posted by guest | Permalink Wednesday, October 1, 2008 10:18 PM

Heller Ehrman did not have "basic" management structure. They had too many layers that were just not necessary. And the titles they gave these middle managers were hilarious. I too have been with Heller for a very long time. There WAS a reason everyone stayed at Heller. The culture. That's been taken away from us. I totally agree with 230 and 231.

And I too will miss it. Good Luck.

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236 Posted by guest | Permalink Wednesday, October 1, 2008 11:00 PM

Heller Ehrman became very strange during its last few years. It appeared to be marketing its admin staff and management, instead of its lawyers.

The landing pages of its office websites listed the management, as though that was something really important about each office.

The page for the San Francisco office, for example, prominently displayed the following information:-

Management & Administration

Managing Shareholder:
Barry Levin
Office Administrator:
Jean Jones
Professional Recruitment Manager:
Shelley Levine
Marketing and Business Development Contact:
Erin Bank

That sort of information was displayed for every other office as well.

Now, all those people listed in the management & admin section of the office landing pages may have been sincere and good at their jobs and so forth, but how relevant to the rest of the world was Heller Ehrman's management and admin structure? Who cares?

The information presented on the firm's website highlights how management had lost its way. It's a symptom of how the focus had come off the firm's legal practice and lawyers. And how the management / admin group had taken over.

It was very obvious when it was happening, but the firm's top management just wouldn't or couldn't put a stop to it.

Very sad.

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237 Posted by guest | Permalink Wednesday, October 1, 2008 11:13 PM

#236: AMEN!!!

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238 Posted by guest | Permalink Wednesday, October 1, 2008 11:32 PM

Time to go read the FAQ we finally received today.

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239 Posted by guest | Permalink Thursday, October 2, 2008 1:05 AM

And what happened with communication from Marketing department? Pretty quiet on that front.

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240 Posted by guest | Permalink Thursday, October 2, 2008 10:17 AM

Interesting comment from Heller Highwater:

stryder 1 October, 2008 at 6:17 pm

I almost made two years here at Heller. I’ve worked as a legal secretary in SF forever, particularly at large firms, for shareholders. I suppose it’s as good a time as any to air my frustrations with middle management. An innocuous request for information from accounting invariably turned in to a three/four day email string always involving no less than five people. A simple request for numbers, numbers a client had requested, couldn’t be done. It just couldn’t get done — until, sadly, I involved my shareholder! Voila, it’s done. I suppose not knowing “someone” in accounting was the problem, but should it be? It astounded me everytime I was in this position. I worked at a firm for 15 years, where telling somebody “I don’t know” or “it’s not my job” just wasn’t done. What was acceptable: “I’ll find out and get back to you.”

That’s a small sampling of my trials and travails at Heller. I’ve heard things had changed, but sadly I never knew the Heller of yore.

I am truly saddened by these events. SF is losing an iconic figure. I wish I had come earlier, before things changed.

http://hellerdrone.wordpress.com/2008/10/01/heller-ehrman-victim-of-mushroom-management-style/#comment-327

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241 Posted by guest | Permalink Thursday, October 2, 2008 2:17 PM

Re 236's posting, could not agree more, and this is the voice of experience speaking here. "The information presented on the firm's website highlights how management had lost its way. It's a symptom of how the focus had come off the firm's legal practice and lawyers. And how the management / admin group had taken over. " Whenever we'd complain bitterly about outsourcing of some department or other, that had previously done a very good job and added value to our practice, management would come back with the "core competencies" speech. Are we practicing lawyers, or are we document production operators? Accounts receivableclerks? etc. And yet, endless pointless meetings and security to the point of total data constipation were apparently "core competencies".

And hey, Suzanne, outsource YOURSELF!

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242 Posted by guest | Permalink Friday, October 3, 2008 4:19 AM

The discussion above is good on the middle management problem, and the thickening of bureacratic arteries at Heller over the past five plus years. That is not the whole story, by any means, of what went wrong though.
Above the staff level, there was a fundamental strategic error on growth strategy. That led to taking in disparate lateral partners and groups, who integrated poorly into the firm, whose lack of integration meant weak firm loyalty on their part, and whose diluting effects also weakened the loyalty and teamwork of the older core of partners. In a nutshell, what had been a very successful 300 attorney firm turned into a poorly managed, uncohesive 650 attorney firm.

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243 Posted by guest | Permalink Sunday, October 5, 2008 10:21 PM

Really sad! I worked for Heller for more than 10 years and feel very sad this is happening to once an A list law firm. Robert Hubbell, Matt Larabee and Barry Levin are to blame for screwing up the once $500 million firm because of their corporate greed. These 3 people should've been fired long time ago! I feel sorry for the remaining shareholders, associates and support staff. Good luck to them I hope they can find a same landing soon. As for Rob Hubbell, why is Barbara "skinny" Mitchell always hangs around with you in your office? Is there something going on between these two? Or is Babara Mitchell just the biggest ass kisser in the company? Everyone in the L.A. office notice the extremely close relationship of these two people right after they got back from a long trial in Portland about 7-8 years ago and she was promoted to be the Paralegal Manager. Yes, she's the one who took the BAR examination about 3-4 times and cannot pass. She is also the reason why there has been a few paralegal who left the firm.

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244 Posted by guest | Permalink Sunday, October 5, 2008 10:21 PM

Really sad! I worked for Heller for more than 10 years and feel very sad this is happening to once an A list law firm. Robert Hubbell, Matt Larabee and Barry Levin are to blame for screwing up the once $500 million firm because of their corporate greed. These 3 people should've been fired long time ago! I feel sorry for the remaining shareholders, associates and support staff. Good luck to them I hope they can find a same landing soon. As for Rob Hubbell, why is Barbara "skinny" Mitchell always hangs around with you in your office? Is there something going on between these two? Or is Babara Mitchell just the biggest ass kisser in the company? Everyone in the L.A. office notice the extremely close relationship of these two people right after they got back from a long trial in Portland about 7-8 years ago and she was promoted to be the Paralegal Manager. Yes, she's the one who took the BAR examination about 3-4 times and cannot pass. She is also the reason why there has been a few paralegal who left the firm.

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245 Posted by guest | Permalink Thursday, October 9, 2008 3:36 PM

I agreed with Clueless, Bruce Wright was not the BAD BUY at all. I've been at Heller for almost 10 years before I had to leave. Bruce Wright was always supportive of the staff. Whenever I had a problem or question, I can always count on me to get answers. Everything changed after Bruce Wright left. Heller was like a second family to me. I had met many good people and still have lunch sometime.I am sorry to see this great go down like this. Best wishes to all the staff who will stay behind. There's always life after Heller.

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246 Posted by guest | Permalink Thursday, October 9, 2008 3:39 PM

I agreed with Clueless, Bruce Wright was not the BAD BUY at all. I've been at Heller for almost 10 years before I had to leave. Bruce Wright was always supportive of the staff. Whenever I had a problem or question, I can always count on me to get answers. Everything changed after Bruce Wright left. Heller was like a second family to me. I had met many good people and still have lunch sometime.I am sorry to see this great go down like this. Best wishes to all the staff who will stay behind. There's always life after Heller.

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247 Posted by guest | Permalink Thursday, October 9, 2008 3:57 PM

I agreed with Clueless, Bruce Wright was not the BAD BUY at all. I've been at Heller for almost 10 years before I had to leave. Bruce Wright was always supportive of the staff. Whenever I had a problem or question, I can always count on me to get answers. Everything changed after Bruce Wright left. Heller was like a second family to me. I had met many good people and still have lunch sometime.I am sorry to see this great go down like this. Best wishes to all the staff who will stay behind. There's always life after Heller.

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248 Posted by guest | Permalink Friday, October 10, 2008 10:48 AM

I agreed with Clueless, Bruce Wright was not the BAD BUY at all. I've been at Heller for almost 10 years before I had to leave. Bruce Wright was always supportive of the staff. Whenever I had a problem or question, I can always count on him to get answers. Everything changed after Bruce Wright left. Heller was like a second family to me. I had met many good people and still have lunch with some of them. I am sorry to see this great go down like this. Best wishes to all the staff who will stay behind. There's always life after Heller.

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249 Posted by guest | Permalink Saturday, January 31, 2009 3:33 AM

I worked as a receptionist at Heller Ehrman for five god awful years. at the height of Heller's success,there were five receptionists. I watched as the firm expanded and kept hiring more and more people,attorneys,para legals and it finally outgrew the space at our old building,so Heller moved to its offices at 333 Bush Street. By then I had had enough of being treated as if I were an idiot by the partners,who did nothing but complain about everything they thought the receptionists were doing wrong. They stood in front of our desks,listening to us handle hundreds of calls a day,and complain that we weren't answering the phones to their satisfaction. I was called "just a receptionist" or that idiot at the front desk or worse. I am not surprised that the firm went out of business.

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250 Posted by guest | Permalink Saturday, January 31, 2009 3:33 AM

I worked as a receptionist at Heller Ehrman for five god awful years. at the height of Heller's success,there were five receptionists. I watched as the firm expanded and kept hiring more and more people,attorneys,para legals and it finally outgrew the space at our old building,so Heller moved to its offices at 333 Bush Street. By then I had had enough of being treated as if I were an idiot by the partners,who did nothing but complain about everything they thought the receptionists were doing wrong. They stood in front of our desks,listening to us handle hundreds of calls a day,and complain that we weren't answering the phones to their satisfaction. I was called "just a receptionist" or that idiot at the front desk or worse. I am not surprised that the firm went out of business.

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251 Posted by guest | Permalink Saturday, January 31, 2009 3:34 AM

I worked as a receptionist at Heller Ehrman for five god awful years. at the height of Heller's success,there were five receptionists. I watched as the firm expanded and kept hiring more and more people,attorneys,para legals and it finally outgrew the space at our old building,so Heller moved to its offices at 333 Bush Street. By then I had had enough of being treated as if I were an idiot by the partners,who did nothing but complain about everything they thought the receptionists were doing wrong. They stood in front of our desks,listening to us handle hundreds of calls a day,and complain that we weren't answering the phones to their satisfaction. I was called "just a receptionist" or that idiot at the front desk or worse. I am not surprised that the firm went out of business.

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