Second

$750b bailout for Heller!

Nicely (and respectfully) covered, ATL. Best of luck to those at Heller.

Nice comma splice in the first sentence.

Very sad end for a great San Francisco firm. RIP, Heller.

"finding employment for associates and shareholders..."

in other words: staff members are FUCKED

Brobeck, then Heller? What's next, MoFo?

so what about the incoming first-years that were supposed to start in January?

Second

9--The incoming first years are screwed. Probably a gift card to Olive Garden and a "We'll do everything we can for you."

5- No comma splice there, asshat.

12 > 5

what happens to last year's heller summers?

A gift card to Olive Garden is not as nice as it once was. I remember growing up and going out to idnner with my family thinking Olive Garden was a little on the nicer side, as family restaurants go. Then I went again recently, and found the clientele to be much more rif-raf. In other words, it was filled with Obama supporters. I held on to my wallet as we walked out.

I hope they get Macaroni Grille giftcards.

First sentence correctly punctuated. DIAF, 5.

On a side note, any news on the Seyfarth-Squire front?

Macaroni Grill is way better than Olive Garden, though the open kitchen concept is pretentious and quite fitting for McCain types

What a damn shame.... Thoughts and Prayers....

Appeals Court Affirms Qualcomm Infringed Patents

More good news!

http://www.hellervermin.com

17 - I am not a merger specialist, but I would think that potential merger could take months to iron out. Be patient.

fuck off, "agent 41"

nobody cares.

Giftcards at Olive Garden or jobs at Olive Garden? That is the question.

RIP Heller. It's really sad for the Heller people.

5 - bitter associate subjected to regularly scheduled pegging by equally bitter wife/girlfriend.

Nice post, Elie. Thanks.

NY Olive Garden to 190!

My friends in high school used to worry about mergers while other firms dissolve. It's cool.

NY Olive Garden to 190!

To summarize:

"Sorry about the mess."

How unfortunate. My thoughts to the Heller folk.

28 - suck a d.

Islam =TTT

33 = ???

33 = Trig Palin

Today, Rudy Guiliani blamed 9/11 for the Heller dissolution.

RIP, Heller. I hope everyone finds a job.

35 - you're an idiot!!

35 - you're an idiot!!

It was the free bagels and soft drinks. Mark my word. Today's economy can't handle such dotcom excesses.

38 = Piper Palin

35 = William Ayers (who only happens to live in the same neighborhood as Barack).

Either the IP Group knew the end was near and left... or it simply facilitated the end.... Not sure what to believe....

Isn't it about time for bonus news to start trickling in?

lol @ 44

This is unbelievably sad, and not just because a lot of really nice smart people will lose their jobs. Love it or hate it, but Heller was a San Francisco institution unlike any other. It embodied some of the best West Coast values - it valued individual before $$ (not always, but more often than other firms), it valued family life, it stood up for minority groups, and the people were smart, down-to-earth, and deservedly well-respected. It's just sad, sad, sad to see all of this go to shit. RIP, Heller.

Incoming associates: email your resumes to every fucking firm out there - you will be amazed by how much respect Heller name gets in the legal community and if there is an opening, you will get an interview. Unfortunately, many biglaw firms have overhired given the economy, so concentrate on AmLaw 200 and boutiques - you are smart and you will be able to make a career no matter where you end up. Send out your resume to every fucking recruiter out there - 80% will tell you that they don't work with out-of-school associates, but if you had good grades and some prior experience, there will be the other 20% that would want to work with you. Contact Heller partners once they settle in wherever it is that they are going - some might be able to take you in. Put in the time into finding a new job, and it might take a couple of months, but you will find something.

Everyone: good luck!

Non-Heller associate.

42=Sarah Palin's preacher, fulminating about the Jews and the Olive Garden negros plotting to snatch his pleather wallet.

good luck to all

another victim of bush's destruction of the economy - very sad

47 to ATL EIC! That was a stellar comment.

Fellow associates, it has been real. Best of luck over the next 60 days.

So, I guess valuing individual before $$ and valuing family life doesn't work so well financially????

9, you no longer have a job come January. And definitely don't count on the stipend you were expecting to be paid.

This is simply awesome. I mean come on, this is news. And why are we worrying about Heller attorneys. All the shareholders with business will land at other large firms. The junior shareholders will have options at smaller firms. The associates all have good-credentials so they'll land somewhere. Maybe the really senior ones will have some trouble but they can go to smaller firms. The first years also may have problems but again they sill find something eventually given their credentials. It would be far worse if a lesser firm dissolved.

51, it did for about 115 years. When the focus shifted away, that's when the firm developed its terminal disease.

47 to Fed Chairman. Palin to Hawaiian Tropic Zone

53, I don't think anyone was worried about the attorneys...

51, quite the opposite - it's not that putting family over $$ did the firm in; it's just that some people decided that $$ matter more, and that's what ruined the firm.

53 -- True. All the Heller attys I know are well credentialed. They won't have any problems finding jobs.

Any word on Schulte layoffs?

58

those with book are your master - show some respect you filthy poor

47 = 49 = 55, obviously you need to read the Jews and negros comment a little more closely.

It is a sad day in the SF legal community. I wish all the Heller attorneys and staff the very best for a smooth transition, hopefully to brighter and better opportunities ahead. Good luck, you guys.

and gals.

why did this happen? just b/c of partner defections and failed mergers?

HELLER = TITANTIC

I had an offer by Heller Ehrman. I got the phone call today, "We are uncertain about our summer associate program for next summer."

Good thing I have another offer!

64 - No, SF-centric management that thought they knew best for everyone. Colossal stupidity. . . and arrogance.

66--Another offer at Cadwalader?

After working with many, many Heller attys and staff members, I have to say I am convinced its a top flight shop with great people. It is a sad day.

Coudert Brothers 2.0 -- good luck, all.

70: ditto. I've seen many Heller attorneys on the other side, and they always impressed me as smart and decent people. Unbelievable.

if GULC grads were in charge of Heller, none of this would have happened.

I think Heller will be generous enough to assist incoming associates find placement at other firms - think Coudert Brothers.

Good luck all!

So does this mean employees aren't getting severance? Or will there be additional checks after the 60 days? Those of you who think everyone will land at other firms are kidding themselves. Lots of other firms are hurting as well and absorbing this many attorneys is going to take months if not longer.

WHAT CAUSED HELLER'S DOWNFALL?

ANY OTHERS ON THE WAY?

64 = Increasing Psycho. Give if up you loon.

It's not too late to apply to Heller. They are looking for several associates, including an IP associate in the DC office: http://www.hellerehrman.com/en/careers/attorneys_openings.aspx

75: This was covered extensively yesterday. Read "145" from yesterday's thread for the best and most complete synopsis.

68: Brilliant.

http://hellerdrone.wordpress.com/

Do associates get paid under the WARN act?

Islam=TTT

Yes, 81. All "employees" do. SH do not.

I don't think that is in addition to the 60 days paid time from this Friday, though.

74: There will be no severance. Best case scenario, the firm will be able to make payroll for the next 60 days. If they are able to make payroll for those 60 days, only very few employees may be kept on board after then. Right now, you need to assume you don't have a job beyond 60 days, and you need to hope you actually get paid for those 60 days.

Good luck to all the Heller associates.

86 (and others who have left kind comments): Thanks. We appreciate your thoughts.

Out of curiosity, what happened to the people who are supposed to be starting there as first years right now?

Also, PRAISE GOD that this toilet firm didn't call me back.

88: What does it say about you if you couldn't manage a callback from a "toilet firm"?

88 = Trig Palin

I went through it at Brobeck -- all involved will come out wiser on the other side. Best wishes to you all.

"Best case scenario, the firm will be able to make payroll for the next 60 days. If they are able to make payroll for those 60 days, only very few employees may be kept on board after then. Right now, you need to assume you don't have a job beyond 60 days, and you need to hope you actually get paid for those 60 days."

They will get that 60 days' pay, because that's the WARN pay. California employees also must be paid for any accrued but unused vacation, at risk of penalties under the Labor Code.

People who accepted offers but who have not yet started will likely get nothing. If they're lucky, they might get invited to go along with practice groups/attorneys who need junior associates.

Any way you look at it all, it is a sad, sad day in the SF legal community.

Holly crap!

92--Does't WARN only apply to plant closings which are elemental to a surviving business? WARN does not apply when an entire business fails from my understanding of the law.

94: (not 92 here, but) WARN applies to overall closing of a business (that has more than the threshold number of employees). Plant closings are a subset of the overall scope of the WARN act.

89: It says that God did not want his loyal son/daughter working at Heller due to the foreseen dissolution.

- Not 88

Way too many Islamic Trig Palins on this site. It is unsettling.

Finally, a well-done post by Elie.

Heller associates need not worry. The economy will turn around after the election.

NASTY comma splice in first sentence.

15: Isn't Macaroni Grille a "fancy" restaurant for white trash?

85 here. 92, that's all great in theory, but if the firm shuts its doors in 60 days and ceases to exist, who are the employees going to sue for their unpaid wages? It's one thing if the firm were to file for bankruptcy where there might be some chance of a nominal recovery, but good luck getting $$ from an entity that no longer exists. Those employees would have to just hope the firm has employment practices coverage that doesn't exclude WARN act claims.

good point, 85....when Brobeck announced it was closing, most associates were on the street within a week--no severance, no accrued vacation pay, no relocation assistance, nothing...WARN certainly didn't protect anyone at Brobeck...

My first "law" job before law school was as a paralegal in Heller's Seatlle office when the first Gulf war had just begun. My first Heller assignment was a S&L scandal case. The more things change . . . Sad to see it go after more than 100 years.

My first "law" job before law school was as a paralegal in Heller's Seatlle office when the first Gulf war had just begun. My first Heller assignment was a S&L scandal case. The more things change . . . Sad to see it go after more than 100 years.

My first "law" job before law school was as a paralegal in Heller's Seatlle office when the first Gulf war had just begun. My first Heller assignment was a S&L scandal case. The more things change . . . Sad to see it go after more than 100 years.

My first "law" job before law school was as a paralegal in Heller's Seatlle office when the first Gulf war had just begun. My first Heller assignment was a S&L scandal case. The more things change . . . Sad to see it go after more than 100 years.

THis is all I have to say: http://justmarvy.blogspot.com/2008/09/oh-ye-of-little-faith_25.html

I think McCain should suspend his campaign to come fix this mess. Also, he should cancel the VP debate because....well, that is one dumb bitch.

I think McCain should suspend his campaign to come fix this mess. Also, he should cancel the VP debate because....well, that is one dumb bitch.

108 - Why are you still up, Elie? You're not supposed to be here after 5 p.m.

(Actually, I think Elie is finishing this week strong.)

According to a McCain spokesperson, the senator does not plan to suspend his campaign or to cancel any debates as a result of the impending dissolution of Heller Ehrman. The spokesperson warned the media not to read anything into this decision, becuase the senator's experience as a POW puts his motives beyond questioning by mere morTTTals.

Maybe McCain could allow some of the affected Heller employees to live in his 12 houses. It could be nice as long as they don't mind the smell of really old man and impending death.

OK we get it. No more Heller. What about bonuses in NYC?

Heller is where I worked out of law school and where I learned the practice of law (llitigation) from some fine mentors. Aside from the stellar writers I had the distinct pleasure of working with (and learning from), I learned to carry out my obligations to clients, courts, and adversaries with professionalism, integrity, and respect, and not to compromise any of those principles, no matter the cost.

So although the firm will no longer exist, I will always remember the people who taught me how to practice law the right way, and the many, many people who were so kind to me when. And I will keep these friends and mentors close to me, wherever they may land.

Heller is where I worked out of law school and where I learned the practice of law (llitigation) from some fine mentors. Aside from the stellar writers I had the distinct pleasure of working with (and learning from), I learned to carry out my obligations to clients, courts, and adversaries with professionalism, integrity, and respect, and not to compromise any of those principles, no matter the cost.

So although the firm will no longer exist, I will always remember the people who taught me how to practice law the right way, and the many, many people who were so kind to me when I didn't know what a pleading meant. And I will keep these friends and mentors close to me, wherever they may land.

Can someone explain to me how/why this happened? The articles say that this crisis was caused by the failure of the Mayer Brown merger and the departure of the IP group, but that's hardly an explanation. I see from HellerDrone that Heller apparently has sizeable bank debt but also considerable AR, so presumably the firm is receiving a certain amount of money from AR to meet debts as they come due. So what gives? Did collections on the AR drop recently, so that the firm couldn't service the debt? Did the banks have some contractual ability to accelerate payment based on either the failed merger or the IP departure?

Reading this makes being at the office working at 10 because I have more work than I know what to do with...not so bad. Glad I chose litigation and a solid firm.

What is this talk of Schulte Roth layoffs?!

That is not a comma splice, idiots.

I got laid off by Schulte once, it was no big deal.

I guess I won't be moving over to Heller Seattle as I always dreamed of.... oh shit, no Preston Gates and Ellis either... WTF is happening to the Seattle firms? Can't I ever go home?

117, are you hiring? I know of quite a few excellent litigators who are looking.

I was supposed to start in the new york office this fall.

Heller was a phenomenal firm when I accepted my offer. turned down top ten firms because the people i knew who worked there were brilliant and fucking great. it sucks to lose a job, but i'll get a new one. sucks even more that such a great firm went under

everyone i've talked to from my class is beat up about all this but all are taking advantage of the free time - probably half are committed to working in swing states for obama, some volunteering, others traveling, all of us waiting for the right time to apply to the right firms.

thanks to those who offered condolences, we'll do you proud

"Heller is where I worked out of law school and where I learned the practice of law (llitigation) from some fine mentors. Aside from the stellar writers I had the distinct pleasure of working with (and learning from), I learned to carry out my obligations to clients, courts, and adversaries with professionalism, integrity, and respect, and not to compromise any of those principles, no matter the cost."

Yeah, you didn't pick up as much as you should have from Heller's "stellar writers."

116: see http://www.evilesq.com It explains a lot even if it's saterical

123, you have any ideas on how you're going to approach our job search now???

114

"Learning" from douchebags who think Strunk's 1920s Upper East Side grammar is relevant (or even necessarily correct) in modern times is not really all that valuable...

Best of luck to the Heller folks; this will be tough for everyone, but everything will turn out OK. Thoughts and prayers, all.

124, you're spending an evening commenting on a subject which clearly bears no significance to your life to correct the grammar of a random person. your social life, your cry for attention, both sad

guys in my high school used to correct grammar all the time, they never got laid

570 lawyers out on the street now. This is going to leave a mark. Ouch.

114: your writing would be more appropriate for a eulogy of a person, not a firm. no one is dead! the dramatics are a bit rediculous, don't you think?

100+ year old firms in my high school use to dissolve all the time, and it was not big deal.

As a current and 6-year employee of HEWM, thanks to #s 1, 2, 4, 123 and all those other numbers and folks supporting us. #123, we definitely must know each other and I look forward to meeting up at another awesome firm one day. I still do call bullshit on the whole 'the bank is in control and we don't know if we're gonna pay you, pay vacation time, outstanding sabbaticals, etc., etc."... and hey, you'll qualify for COBRA but let us not mention that once there's no longer a plan in effect to COBRA off....you're f(&(*&*Ocked. Heller so rocked but the last fews have been tough as hell. R.I.P. Heller Ehrman...

Is this resultant from that discrimination lawsuit from the pregnant asian chick?

Also what is "TTT"?

I left Heller a few years ago - didn't have the most positive feelings about some of the shareholders at the time, but after three years working in a real shark tank, I appreciate the way people treated each other at Heller more and more.

Best of luck to all the attorneys and staff there, especially in L.A. You're some of the best and should find plenty of firms that will be happy to have you.

Heller has been hemorrhaging partners (and their books) for a year or more. With each defection, Heller announced that it was normal partner turnover.

I am a 2L and did my summer at a major firm. When I left they asked if was interested in IP, I have a science/engineering background. I demurred.

I am not really interested, but it seems that IP is the only area really secure. Should I say yes I am interested in IP?

I feel horrible for everyone involved. Best of luck and as cliche as it is - when one door closes one always opens.

Best of luck to all of you.

Guys from my high school were douche bags who only cared about making money. They routinely infiltrated and brought about the demise of student groups and social clubs full of brilliant people with outstanding character and high ethical standards. It was a big deal.

138 - Litigation (any type) seems secure to me. I am at a vault top 50 firm and we are plenty busy. And so are friends at other firms.

But My friend at OMM is dead.

138, if you're going to do litigation and have the background for it, IP lit is about the most secure you can get in this business.

114, 142: Thanks for your comments. It would be ok to do IP lit, but they wanted pros with opinion work once I get my footing. What do you think/

141 I've heard things are slow at OMM litigation also. What gives?

Thank you to everyone for their kind comments. As for those of you who seem to take pleasure in the pain of others....well I guess there have to be some scumbags like you out there to make us appreciate those who are sympathetic in these hard times.

Most people at Heller realized some time ago that things were not right, and that rough times were ahead. Dissolution was expected by many, but nothing can really prepare you for the reality. It was heartbreaking to hear matt larabee announce that the firm would be closing its doors.

Many people, partners included, have spent their careers at Heller, or hoped to do so. Heller is full of top-notch people. This is a sad day for all of us, and I hope that everyone -- staff, associates, shareholders -- will learn from this experience, grow, and come out even stronger on the other end.

Best of luck to the Heller folks - staff, associates and all.

116 (How did it happen?)

Here is the post from yesterday's blog which explains how Heller arrived at this tragic finale:

Here is my thumbnail take on how it all went down, borrowing from another post on Law.com responding to a story suggesting that the firm's term limits for the chair (i.e., the handoff from Barry Levin to Matt Larabee) explains Heller's transition from significant growth and profits to dissolution. As is often true, it is quite a bit more complex.

IMHO, terms limits had little to do with the fall, as Matt Larabee only carried out (though not as adeptly as his predecessor) the plans made years before. (Someone in another blog suggested that Bill Clinton's term limit had an affect and that is somewhat true because under the last 8 years of Bush, Heller's antitrust group has atrophied from a 90s powerhouse to just a shadow of its former self).

But in fact, the tectonic policy shifts that began during Levin's tenure (i.e., growth as a priority, the bottom line (PPP) as new the top priority, eschewing of of "smaller cases" and "smaller clients", etc.) sowed the seeds of a deep cleavage among the partnership that grew into a deep chasm during Larabee's tenure. (It also killed associate morale because it became clear that with only "huge" cases, associates would never get many substantive experiential opportunities because the stakes were always going to be too high in any given case. That forced a lot of senior associates to move on so that they could actually "do" lawyerly stuff beside drafting pleading and prepping partners. The same proved to be true of junior partners, who fought among members of a case team to take/defend depos or stand up in court, etc.)

Thus, during 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).

Many partners didn't like, and weren't interested in, that move and everything that came with it (even if it meant that they could make more money). In the 80s and 90s, Heller partners could have made more money by defecting to other firms, but didn't want the extra money if it came with working somewhere else. A lot of Heller partners (unlike at most other BigLaw firms, were born and bred at Heller and never worked elsewhere in their careers). Heller also intentionally avoided paying top dollar (it paid just below top dollar) to law grads because it didn't want to recruit those grads who were guided primarily by money and would jump to the next firm who gave big raises--it wanted people who were choosing Heller, not just the highest paying firm of the moment. That all began to change with Levin's tenure (or at least toward the end of Rosenfeld).

The small cabal that ran the firm in the early 2000s was committed to increasing profits and believed that the best way to do that was to emulate NYC firms and to "move" the firm eastward in all respects (e.g., open/expand offices on the east coast, raise rates, raise billable requirements, work associates harder, etc). With the higher rates (to boost PPP) some partners whose clients could no longer afford the services at Heller were indirectly forced out. Other groups (e.g. employment, environmental, soft IP (trademark), etc.) were given a signal that they were marginal to Heller's future, causing further defections.

Then, some "old school" partners began leaving because they saw the writing on the wall due to the new greed and hubris that had taken over the firm's management. They liked the old Heller community, where attorneys were individuals and people, instead of being perceived solely as profit generators.

When the big cases settled last year it became clear that the whole gig was up because the pipeline was a little dry (particularly relative to the prior few years), and that spawned a renewed interest in a merger to save the ship. Failed mergers and further divisions among the partnership about compensation and firm strategy made matters worse. The old power core consisted of the antitrust group (Rosenfeld, Popofsky, Bomse, etc) and the new power core had shifted to IP Lit (Haslam, Fram, etc).

Heller's recent inability to satisfy the members of the IP Lit group was the straw that broke Heller's back. The IP Lit group was the source of the conflicts that broke up the Baker marriage and the IP Lit group had already committed to leave before Mayer opted out (which is probably a primary reason why Mayer opted out).

A tragic tale, where the greed and short-sightedness of few left a lot of people in the lurch. It was a wonderful place for most to work, cut their teeth in a supportive atmosphere, and to learn how to practice law. It was a great San Francisco-based family. I'm going to miss it dearly.

Best of luck to all involved. May everyone land on his or her feet!

Heller people, this totally sucks but keep your chin up. I have not doubt that all of you will land on your feet very soon.

From the lawyer.com

http://www.thelawyer.com/cgi-bin/item.cgi?id=134880&d=415&h=417&f=416

Heller Ehrman begins dissolution

Heller Ehrman has formed a dissolution committee to oversee the winding down of the firm which is due to start as early as today (26 September).

The committee is headed by New York debt finance partner, Lynne Loacker, a partner in the firm’s Venture Law Group and a member of Heller’s policy committee.

The news comes as rumours of a ‘palace coup’ circulate the US legal market.

“[Chairman] Matt Larrabee is no more and [former chairman] Barry Levin is running things again,” a former Heller partner claimed yesterday (25 September).

The rumours that Larrabee had stood down in favour of former chairman Levin came just one day after the Heller chairman emailed the entire firm, apologising for his lack of contact in recent months.

“I am profoundly sorry that I have not been in direct communication with you recently,” Larrabee wrote. “We realise that there has been a lot of news coverage about our firm, and it is wrong to have that be your source of information.”

Larrabee’s statement is unlikely to garner the chairman much sympathy with many Heller partners, former and current.

“How things got so bad, so fast is simply incredible,” said a former partner.

Several partners contacted by The Lawyer said they had written off all or part of the capital they had remaining in the firm.

“They still owe me money,” said another ex-Heller partner. “At most I’ll get 10 per cent of my money. I’m writing off the whole thing. Some people have more than a million. How much are they going to get back? The partners who have left recently will get nothing.”

The lawyer added that Heller’s reported hopes for an orderly dissolution were fanciful.

“It’s going to get bloody,” he said. “People will have to pay for this.”

Heller did not return repeated calls.

If a Hollywood Studio had built something to LOOK LIKE a Big New York Law Firm, it would have looked exactly like Heller's New York Office; fancy expensive space in a new Times Square Tower.

The legal community in New York is to be congratulated for not falling for THAT LURE that was Heller's New York Office.

Explain this to me ... you have an office full of lawyers and none of them appear to be doing any work and, instead of getting rid of dead weight, Heller's New York Office kept adding more lawyers and moving into bigger and more expensive office space.

Heller's demise wasn't some sudden event that just happened this year due to settlement of big litigation. Heller's demise was the result of A FAILED FIVE YEAR LONG ATTEMPT to lure unsuspecting NY Lawyers into that thing Heller Ehrman liked to refer to as its New York Office.

150: Are you that guy who is still angry about Heller NY not giving you an interview for the summer of 2003? I'd be angry too, what after you ended up having to work for that ambulance chaser in Queens and all. I'm sorry you wrongly thought your TTT degree was going to get you a real NYC law job, but look at the upside: that new picture of you in your firm's advert on p. 1385 of the Yellow Pages is fabulous!

150 = not a good guy.

147: I'm sure that some of what you say is true, but the truth is that if you can't pay your rainmakers what someone across the street will pay your rainmakers, the firm is not viable unless there are unusually strong cultural ties. Perhaps some of the things you cite actually had the effect of delaying the fall of Heller.

It looks to me like high-profile partners had been dribbling out for years, and the pace of departures had quickened of late, making clients, other lawyers, staff and financing sources increasingly wary about the future of the firm. When rumors about viability start, they are hard to stop.

You say you want a dissolution
Well you know

McCain in 2008 - four more years of Bush economic policies!!!!

The truth is that 13 months ago Heller did not have any debt. There were several unexpected settlements that dried up the pipes and Larrabee was unable or unwilling to anticipate or react to those changes. That's it. The New York office was actually quite profitable and anyone who has seen the balance sheets would know that. Sure, mistakes were made over the last few years, but nothing that hasn't happened in other firms. I know everyone wants to find grand conspiracy theories, and obviously there were some other problems, but leadership and lack of foresight was the kicker.

Guys at my highschool lacked leadership and foresight. They're all in jail now.

This is not news. Clearly, the layoffs of nearly every associate and partner at Heller is simply due to performance related reasons. Just like the normal attrition that occurs following performance reviews where underperforming attorneys are asked to move on. The partners were asked to leave for underperforming in generating business, and the associates were asked to leave because of low billable hours. If Heller had any attorneys performing at acceptable levels, this would not have happened.

How long before Thelen falls into the tank with Heller and dissolves? A month, three months?

Where Heller goes others will follow

Heller will become the poster child for mismanaged dreams. Over the next year at least 5 and perhaps 10 AmLaw 200 firms will disappear in failures, forced downstream mergers, or shrinking to the point of irrelevance.

Here’s why: Heller is not the only firm with witless greedy management that has delusional dreams about being a force on Wall Street or a force on the coast where they’re not present. They over invest in under producing laterals, acquire lavish office space, and discover that they really are not competitive in their new markets. After all the RFP’s, receptions, media hype, and pronouncements the ugly bottom line is that the bottom line is ugly. In a soft economy where deal flow is slow and litigation is stagnant there is not enough premium work to go around.

So what happened at Heller will happen elsewhere. Less than loyal laterals will pack up their Willy Loman like suitcases and leave for greener pastures. Once two or three sizeable groups depart it’s time to call the bank because the terms of the credit agreement upon which the firm depends have been violated. Bank calls the loan. Game over. No other banks are lending, Partners are stuck with liability on the lease and the loan and their capital swirls down the drain.

But wait - some of the senior partners in many of these firms have special deals, side arrangements, which if disclosed to the partners would cause a riot in main reception. They’ll be O.K. but not their junior partners and certainly not their staff.

Heller was more than a solid shop - it was a premier firm - but some of its leaders heard the distant drumbeats of Wall Street wonder and thought they could compete with the elites. They should have stuck with what they knew how to do. The greedy goofballs should do the right thing and turn their personal net worth over to the firm. It may happen in bankruptcy anyway - look at the records from Brobeck, Altheimer, Testa Hurwitz, Jenkens and all the rest - most partners kissed their capital, their draws, their distributions, and their retirement accounts good bye - along with a fair portion of their net worth to deal with the bank and the landlord.

Heller / Anderson - the names don’t matter. These institutions are tissue thin and built on people and services, not steel and bricks. It’s ugly today. It’s going to get uglier.

Spot on 160.

At least GT is doing well. All Hail Cesar!

143, opinion work is not bad either, but pales by comparison to the big show. Consider that a patent litigation often generates 7 or 8 figures in fees (I cut my teeth on a case for which my former firm has billed $15M or so) - they'll always need good associates for this. Opinions are 5 or 6 figure jobs and often actually preclude representation in the litigation - not nearly as desirable to most big firm types. But, they're also something you can do on your own , so if nothing else, this could be very useful if you don't plan to stay in BigLaw forever. My suggestion: try both, as both are really good experience in the field, whether you stick with them long term or not, and you never know what you'll like until you try it.

149, the "palace coup" thing is totally wrong. Those two guys are joined at the hip. It has been either the "Matt and Barry" or "Barry and Matt" show for years.

101 - So you would recommend that all their staff (non-shareholders) gather immediately and prepare to file a class action suit against the partnership if they -the staff, that is - are not compensated for wages earned (i.e. - accrued vacation time, etc.) when their firm implodes? There's enough speculation out here that their firm will implode in short order and all loyal staff will be left with nothing but hopes that their firm would last for up to another 60 days while they desperately hunt for jobs that don't exist. Is there potential for a class action lawsuit if wages are not properly taken care of in the final hours? (Speculating that many of their folks will be unemployed for up to a year in this market.)

Its a shame to see such a formerly honorable and solid firm turn into a specimen ready to be picked apart and the owners driving for self-preservation above all else. Curious if we'll read about an uprising from the staff in the AmLaw reports.

Out of curiosity, how are MoFo and Orrick doing in the SF Market?

Let’s sort the facts from Heller Ehrman’s SPIN.

Fact: Both Baker McKenzie and Mayer Brown abandoned merging with Heller citing “conflicts.”

Fact: 14 IP Litigators left the firm.

Fact: Patricia Thayer stayed along with Madison IP Lit group (for the time being)

Fact: Heller has represented GE—several of their attorneys. They state this in their Heller Bios and it’s stated on Heller’s Wikipedia page.

Fact: Heller is representing Sonosite (NASDAQ: SONO) against GE in IP litigation.

Fact: Patricia Thayer is lead Heller lawyer representing SONO.

Fact: Jurisdiction for SONO – GE IP litigation is taking place in US District Court in Madison, WI

Fact: Heller Attorneys John Skilton and Sarah Walkenhorst of Heller’s Madison, WI office have signed pleadings related to the SONO – GE case.

Fact: Heller will be paid approximately $12 million for representing SONO.

Analysis: At least one of the “conflicts” cited by Baker and Mayer was SONO – GE if not the only conflict.

Much more information at http://www.hellervermin.com or http://www.evilesq.com

I worked in the NY office for about 2 years. I worked with a lot of great people at the office and especially with the partner who brought me along with him when he switched to HEWM. When I arrived at HE it was a fun place to work, but after the switch to the new offices on 42nd Street the corporate culture changed - an not for the better. It was always snarky in the corporate department as the partners were way uptight, but things did degenerate. I was let go in June or July of 2005 as a result of poor business decisions and HUBRIS. When I checked the HE website several months ago not one associate I worked with was listed - they were all gone, including the partner who brought me there. What a pity that HE collapsed. Greed Killed the Beast.

158: Nice tongue-in-cheek

168: pigs get fat, hogs get slaughtered

What happens to the summers?

170 - they reinterview and contact every attorney they and their parents know.

My condolences to everyone at Heller. I was a summer at Testa Hurwitz in 2004 and had a lot of not-so-fun times watching the firm (and my job after graduation) dissolve in early 2005. That was pretty awful - I can't imagine what it must be like for people already working at the firm.

Best of luck to all the Heller attorneys and staff - I hope everyone finds good jobs quickly.

172: Any coping strategies (aside from call everyone you've ever met) you can suggest for us?

173: drink heavily
-- not 172

The firm just dissolved.

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 your local Human Resources Generalist, XXXXXXXXXX, or email XXXXXXXXXXXXXXXXXXXXXXXXX.

Sincerely,
Heller Ehrman Management

173, we did several things. First, the partner who had the conference call to tell us encouraged us to call the partners we’d worked with over the summer to see if they knew of openings for first-years where they were going. Second, we had a Yahoo group that we used to keep in touch with each other after the summer, and we used it to keep a list of firms that were taking resumes or looking for people, where people had interviews, and where people eventually got hired. We tried to be as open with info as possible. The Yahoo group was also a good support mechanism, since we were geographically scattered. Some people also had good luck working through the career services offices at their law schools.

173's suggestion isn't bad for a day or two, either. :)

One advantage for you is that it’s early in the fall semester, so firms haven’t finished all their first-year hiring yet. Testa dissolved in January, which made it hard because all the big firms were pretty much done hiring first-years.

Good luck to all of you.

sorry, I meant 174's suggestion (drinking heavily).

Well, I guess that's that. Wishing you all the best of luck as you decide what to do next.

Heller is dead. http://www.law.com/jsp/article.jsp?id=1202424813880

Heller is dead, and Thelen is on life support about to die. Any other firms about to go belly up in SF?

Am I the only incoming first year at the New York office who has yet to hear any official word from the firm since last Friday (which wasn't even much of an update)?

looks like proskauer is getting the insurance recovery group.

181: Nope. I also got radio silence. I think we can take the silence to mean that there are probably no placement services available to us.

183: That's the conclusion that I've come to as well. Nonetheless, regardless of whether the news is bad or extremely bad, I personally would appreciate the consideration of being told what's going on since we all signed contracts and have displayed a sufficient level of loyalty/commitment to the firm (even in the face of delayed start dates). Thanks for letting me know that I'm not all alone here.

-181

I used to worked for Heller too. It was a great place to work. I have met many wonderful people and will deeply missed them all. I Agreed with you, 168. Greed killed the beast.

P.S. Just heard from a reliable source that the New York office wanted to contact the incoming first years but San Francisco refused to allow this. The logic of this? I really have no idea. For all of the things that Heller could not theoretically control, I've wasted no time looking to point fingers and find someone to blame. I am not one who struggles to see beyond his own ego-centrism. These are difficult times and I realize that there are many, many concerns on the minds of those in charge. However, in what fashion Heller chooses to go out and the level of accountability that it is willing to display to those caught in the cross-fire (so to speak) is one of the very few things that Heller currently CAN control. Heller has, thus far, failed me and my incoming colleagues miserably . . . NOT by dissolving, but by not communicating with us AT ALL. I am very, very disappointed in how management has conducted itself during this crisis in relation to its newest members. If there are any partners of any law firm reading this, I at least hope that most will recognize this course of action (or lack thereof) as an error not to be repeated in the future. I say something because something needs to be said, regardless of whether I am nothing more than an incoming first year. On no one do I wish the stress that I've endured during the last couple of weeks without any direct information or guidance from the firm.

-181

Greed, hubris and amateur management.

181: (and any others similarly situatted)
You have a very legitimate beef about lack of information. Those of us on the inside have similarly suffered from getting most of our info from the internet and press. Larrabee admitted as much in last Wednesday's email, but that doesn't explain why such a poor communications policy has been followed since the BM merger failed mid-August.

HEWM worked with me for the better part of a decade on a complex and very tough pro bono case. I will always be grateful for the diligence, professionalism and talent of the attorneys and staff who dedicated themselves to this matter, and to the firm itself for devoting the massive resources needed to see the case through. I am heartbroken for Heller, and wish all of you the best.

Thanks, 189.

what about me. the self-employed rehab girl with kid, 14 15 who were robbed of a Mom. i am broke but just want it to stop. my God, my son is from Bethlehem . we all make mistakes. i keep saying, Billy, please, please stop, my friends don't call. what about the effexor, seqregi (1,000) a month, i admit i admit i am bipolar. but do i have a right to live at all because of one damn affair is this Iran? OH GOD PLEASE LET SOMEONE HAVE MERCY ON ME AND HELP OR SHOOT ME SO MY KIDS WILL HAVE A BODY TO BURY. I WISH I WERE NOT SO SANE BECAUSE IT HURTS, DEAR GOD, IT HURTS

what about me. the self-employed rehab girl with kid, 14 15 who were robbed of a Mom. i am broke but just want it to stop. my God, my son is from Bethlehem . we all make mistakes. i keep saying, Billy, please, please stop, my friends don't call. what about the effexor, seqregi (1,000) a month, i admit i admit i am bipolar. but do i have a right to live at all because of one damn affair is this Iran? OH GOD PLEASE LET SOMEONE HAVE MERCY ON ME AND HELP OR SHOOT ME SO MY KIDS WILL HAVE A BODY TO BURY. I WISH I WERE NOT SO SANE BECAUSE IT HURTS, DEAR GOD, IT HURTS

oh YEAH, FUCK YOU BILL NETTLES OF COLUMBIA, MAY YOU ROT IN HELL. . YEAH, YOU ATTORNEY IN COLUMBIA, SOUTH CAROLINA 803-779-9966 OR IS IT 803-799-9966 GOD PLEASE SEND AN ANGEL TO TELL HIM ABOUT THE PAIN OF BEING INSANE OH PLEASE CHRIST

what about me. the self-employed rehab girl with kid, 14 15 who were robbed of a Mom. i am broke but just want it to stop. my God, my son is from Bethlehem . we all make mistakes. i keep saying, Billy, please, please stop, my friends don't call. what about the effexor, seqregi (1,000) a month, i admit i admit i am bipolar. but do i have a right to live at all because of one damn affair is this Iran? OH GOD PLEASE LET SOMEONE HAVE MERCY ON ME AND HELP OR SHOOT ME SO MY KIDS WILL HAVE A BODY TO BURY. I WISH I WERE NOT SO SANE BECAUSE IT HURTS, DEAR GOD, IT HURTS

oh YEAH, FUCK YOU BILL NETTLES OF COLUMBIA, MAY YOU ROT IN HELL. . YEAH, YOU ATTORNEY IN COLUMBIA, SOUTH CAROLINA 803-779-9966 OR IS IT 803-799-9966 GOD PLEASE SEND AN ANGEL TO TELL HIM ABOUT THE PAIN OF BEING INSANE OH PLEASE CHRIST I'M BLEEDING INSIDE

THIS SITE IS RAN BY ASSHOLES FOCUSED ON ONE CASE AND DOING NOTHING TO PREVENT SO MANY MORE WHAT A WASTE. SCUMS WHO HAVE NO RELIGION SHAME THEY DO KNOW WHAT THEY DO