Last week, I was having a business lunch at Michael Chiarello’s Coqueta overlooking the San Francisco Bay. (Those who know me won’t be surprised that I managed to combine a business meeting with some good eats. I’ll save my restaurant review for another time, or you can read it on OpenTable.)
Anyway, my lunch was with a partner at Leason Ellis, a thriving IP boutique in New York. The firm is a boutique in that the lawyers are specialists in intellectual property; as far as I know, that is their only practice area. But within that subject matter, they have both a litigation and transactional practice. Conversely, with limited exceptions, my own firm has remained a litigation-only boutique since it was founded four years ago. We handle a wide range of subject matters, but only do litigation within those subjects.
What are the pros and cons of running a litigation-only shop? Why haven’t we added a robust transactional practice as well?
For as far back as I can remember, the arrival of a new year has been an occasion for me to reflect on my life, where it has gone, and where it appears to be going. Many times I would spend New Year’s Eve simply being grateful; more recently, it has been an occasion to try to see a little furthur [sic].
This year, for the second consecutive year, our firm was approached by an Am Law 100 firm to explore the potential of our being acquired or otherwise merging. These overtures are flattering. They also intensify my annual ritual of considering my path and the choices I have made.
I have written before about some of the differences between Biglaw and small. My perception of those differences, however, has changed quite a bit in the nearly four years since I left Biglaw to help start a boutique firm. Our firm also has changed so much from one year to the next that my calculus of the pros and cons of Biglaw also has changed….
Yeah, some people thought I might be nuts for leaving litigation powerhouse Quinn Emanuel. But the prospects of starting my own firm and building a practice from the ground up were too compelling to ignore. Nearly two and a half years have passed since Colt Wallerstein LLP opened its doors, and still not a day goes by when my partner and I aren’t humbled by our good fortune and our decision to “trade places”: that is, move from Biglaw to start a litigation boutique in Silicon Valley that focuses on high-tech trade secret, employment, and complex-commercial litigation.
I graduated from law school in 1999, and the legal market was very different then. Getting into a “top” law school pretty much guaranteed a job, and most of my law school friends and I had multiple offers and no real concern about landing a Biglaw job, if that’s what we wanted. Offer rates hovered around 100%, and of course the lucrative summers consisted mostly of long lunches at five-star restaurants, luxury box seats at baseball games, open bars, and very little work.
You see partners spinning off from bigger firms to start their own shops all the time. We’ve covered some of these high-profile partners that are still taking the risk during the recession, like the Skadden partners who formed BuckleySandler, or the Boies, Schiller partners who formed Stone & Magnanini.
But starting your own firm isn’t the exclusive domain of partners. Associates start their own shops all the time, even in this market. Last week, we learned that two Quinn Emanuel associates were taking the plunge and forming their own firm, Colt Wallerstein LLP:
Colt Wallerstein is founded by Doug Colt and Tom Wallerstein, two former Quinn Emanuel attorneys. Claude Stern, the managing partner of Quinn’s Silicon Valley office, said of the pair: “For years, I have worked closely with both Doug and Tom. I have trusted them with my clients’ most sensitive information and they have excelled in managing complex, sophisticated, and difficult commercial litigation. Doug and Tom are terrific, client-focused lawyers with a keen sense of the practical.”
These two attorneys weren’t laid off from Quinn. They say they were on partnership track at a firm where profits per partner march ever upwards. So you have to ask, “Why the hell would you leave a stable, well-paying job in the middle of a recession? Do you also enjoy looking gift horses in the mouth?”
After the jump, Wallerstein answers some of our questions.
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.