What's Going On At Kasowitz Benson?

Will partner departures be followed by associate layoffs at the firm?

king chess pawns crown“Kasowitz as a firm follows the ‘king and his court’ model,” a friend of mine quipped over breakfast when our talk turned to Kasowitz Benson, the former litigation powerhouse that’s fallen upon troubled times. “When the king is gone, what happens to the court?”

His Royal Highness Marc Kasowitz remains very much on the throne — at least not when down in Florida for his daughter’s horse-riding competitions, or out of the office for other personal reasons — but his courtiers are defecting. As we mentioned earlier this week, Robin Cohen and six other insurance recovery lawyers left Kasowitz for McKool Smith. They probably won’t be the last; as my source mentioned over breakfast, other groups are shopping themselves around.

Another tipster recently contacted us to underscore the significance of the McKool Smith defections:

I was surprised that there [wasn’t more] ATL coverage of the recent departure of Robin Cohen’s successful insurance recovery practice from Kasowitz Benson…. Now they’ve lost what everyone at the firm knows is their best and most well-regarded department – insurance recovery. I still have loads of friends there, so I hope the firm recovers, but it looks like a sinking ship to me.

In a statement, Marc Kasowitz tried to spin the departures as a positive thing:

The firm has just enjoyed two of its most successful years in a challenging market environment while also strategically positioning itself for even greater success going forward. This separation further positions the firm to pursue substantial future opportunities in its core litigation practices without any conflicts or other impediments.

Conflicts were certainly an issue; as Robin Cohen told the Wall Street Journal, because she represents companies in disputes with insurers, she kept on encountering conflicts because of Kasowitz’s work for a holding company that owns insurance companies. But Marc Kasowitz’s claim of “two of its most successful years” seems more of a stretch.

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The firm conducted layoffs in February 2014 and again in March 2015. It has also lost partners to other firms (such as Michael Fay and Jenny Kim, who launched the New York office of David Berg’s litigation boutique, Berg & Androphy). All these departures — associates and partners, voluntary and involuntary — helped Kasowitz take the #3 spot on the list of Biglaw firms with the biggest drops in attorney headcount.

And note what month we’re now in: February. In the past two years, Kasowitz has conducted double-digit layoffs in the first quarter. Will cuts be coming this year?

Finally, what about associate bonuses? Last year, Kasowitz paid out bonuses that one source called “insulting.” If the firm just enjoyed one of its “most successful years,” presumably the bonuses are better this time around?

If you have information on what’s going on at Kasowitz, feel free to email us or text us (646-820-8477). It seems there’s some palace intrigue going on at King Kasowitz’s court.

UPDATE (5:15 p.m.): Thank you, Kasowitz tipsters, for coming to the defense of your firm. We’re working on a follow-up story for next week; keep the information coming, by email or by text message. Have a good weekend!

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Kasowitz Benson Insurance Recovery Group to Join McKool Smith [Big Law Business / Bloomberg BNA via Morning Docket]
Kasowitz Losing Insurance Litigators to McKool Smith [Wall Street Journal]

Earlier: Nationwide Layoff Watch: Sweeping Job Cuts For ‘Superior Legal Minds’
Nationwide Layoff Watch: More About The Kasowitz Casualties