Law Firm Mergers

Legal recruiters find work for lawyers — and sometimes they create work for them. We previously covered, for example, the litigation between mega-recruiter Major Lindsey & Africa and one of its former employees, Sharon Mahn.

Sometimes recruiters go after each other, and sometimes they go after law firms — firms that don’t pay them the placement fees to which they’re entitled. Recruiter Alan Miles, principal of Alan Miles and Associates, went after Bingham McCutchen — and won, big time.

How much did Miles win? And on what grounds?

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Justice Barbara Lenk

* On the same day that Lady Kaga wrote her first dissent, Governor Deval Patrick nominated Barbara Lenk, an openly gay woman, to the Supreme Judicial Court of Massachusetts. Big week for… uhh, female judges. [New York Times]

* The prosecution in the Barry Bonds case rested their case yesterday, and the judge is considering throwing out previous testimony about Bonds’s shrunken testicles. National League something something small ball. [San Francisco Chronicle]

* This mob lawyer was allegedly just a mob mobster. [New York Law Journal]

* Fordham Law School hosted a conference on Bob Dylan and the law, featuring “law professors, a Dylan historian, a disc jockey and a guitar player.” Then she opened a book of poems and handed it to me. Written by an Italian jurist from the 20th century. And every one of Scalia’s words rang true and glowed like burning coal. [City Room / New York Times]

* White O’Connor, the Hollywood entertainment-law firm, is merging with “NYC white-shoe powerhouse” Kelley Drye. [Deadline.com]

* A mother has sued the Chicago public school system and her daughter’s teacher after the teacher posted the daughter’s picture on Facebook and mocked her hairstyle. The hairstyle featured an assortment of Jolly Ranchers. Sweet. [ABA Journal]

* The people of Wisconsin have spoken! And as of this morning, it’s still not entirely clear what they’re saying. The race for a Wisconsin Supreme Court seat is too close to call. [Politico]

Accept your offers. It’s wise advice for 2Ls going through fall recruiting, and it’s wise advice for partners of the rapidly unraveling Howrey law firm, most of whom have offers to join Winston & Strawn. Last weekend, Winston made offers to a little over 75 percent of Howrey partners, with responses requested in 21 days.

Yesterday we mentioned that a Howrey partnership conference call took place on Tuesday. During that meeting, firm chairman Robert Ruyak and Winston & Strawn managing partner Thomas Fitzgerald apparently urged Howrey partners with Winston offers to accept them as soon as possible, according to The Recorder.

Many Howrey partners have already left for other firms, as chronicled in these pages. A group of eleven attorneys recently departed for Morgan Lewis, for example.

Of the 200 to 230 Howrey partners who remain, how many are likely to go with Winston?

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In our last story on the trials and tribulations of Howrey, we expressed doubt that a full-on merger between Howrey and Winston & Strawn would take place. We suggested that Winston would probably wind up “picking up large chunks of Howrey, maybe even entire offices — just like Sonnenschein picked up 100 lawyers from Thacher Proffitt, during TPW’s final days.”

And that appears to be what’s happening now. According to The Recorder, Winston extended individual offers to a little over 75 percent of Howrey partners over the weekend.

And what about the remaining 25 percent? A recruiter familiar with the situation told The Recorder that they either have conflicts issues or aren’t interested in winding up at Winston.

What else do we know about the situation?

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Developments are flying fast and furious out of Howrey. Yesterday we passed along reports that Howrey’s merger talks with Winston & Strawn were off. Today we’re hearing that they might be back on (or that they never stopped in the first place).

According to the U.K.-based Legal Week (via the ABA Journal), the talks are ongoing. The parties are represented by Thomas Fitzgerald, managing partner of Winston, and Sean Boland, vice chairman of Howrey. Winston is apparently attracted to antitrust at Howrey, an area where Winston wants to expand.

Corroboration of continued Winston / Howrey discussions from a U.S. source, plus some interesting internal emails from Howrey leadership, after the jump.

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(Plus two interesting internal emails.)

When we last wrote about goings-on at Howrey, the once-strong law firm that’s now experiencing troubled times, we mentioned the possibility of partner losses in the Chicago office. The firm pushed back on this, denying knowledge of any imminent defections in the Windy City.

It now seems, however, that additional partner departures may be on the horizon — in Chicago, and elsewhere too. As reported in Crain’s Chicago Business (via WSJ Law Blog), the Chi-town powerhouse of Winston & Strawn recently discussed a possible merger with Howrey — but then decided against that approach, opting instead to pick off specific groups and partners from Howrey.

The Howrey situation is starting to look a lot like what happened to Heller Ehrman. A well-respected firm with a widely admired culture encounters business difficulties. Key partners and groups (especially IP) start leaving for greener pastures or more stable platforms. A potential white knight emerges — Mayer Brown in Heller’s case, and Winston & Strawn in Howrey’s — but then decides to order a la carte from the menu of partners, practices and offices, instead of going for the chef’s tasting menu.

A distressed employee of the firm sets up a blog to serve as a clearinghouse for updates. Heller had Heller Highwater, and Howrey had Howrey Doin’.

But now it looks like Howrey Doin’ is… done. If you surf over to http://howreydoin.wordpress.com/, the blog’s former address, you learn that “[t]he authors have deleted this blog.”

What the heck happened? We have a statement from the author of the blog, as well as a response from the firm.

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Non-Sequiturs: 01.07.11

* Elie here: Remember yesterday when I said that it was a prick move by the cop to issue that ticket on the mother of that comatose 13-year-old girl, and then all those commenters said the cops had no choice because issuing the ticket was an important matter in terms of the civil liability of the driver? Yeah, well, I stand by my initial analysis that the cop was a jerkhat. [New York Personal Injury Law Blog]

* We were unimpressed by Holland & Knight giving iPads to its associates — and we’re not alone. [South Florida Lawyers]

* The merger talks between Reed Smith and Thompson & Knight are apparently off (assuming this isn’t another case of Kilpatrick Townsend & Stockton). [Am Law Daily]

* How can lawyers dress to impress in 2011? [Lawyerist]

* So let me get this straight, it’s not okay for me to drink Four Loko and drive, but it’s okay for my car to do it? What’s up with that? [Alt Transport]

* Were passports biased against gays? Well, now they won’t be. [Huffington Post]

* If you’ve been following along with the most important news of today — which is obviously that the study showing that a crying woman is a total buzzkill — here’s an important counterpoint. Crying might be nature’s way of saying: “Stop beating on your wife you freaking a**hole. [Newsweek]

Yesterday we reported on a change in management at Nixon Peabody. We understand that some people at Nixon hope that the shift at the top will be followed by a return to Nixon Peabody’s old law firm culture.

But maybe NP people will have to get ready to assimilate into an entirely different culture? A well-placed tipster reports that some Locke Lord partners were told that the firm is exploring a possible merger with Nixon Peabody.

Locke Lord denies the rumor, while Nixon Peabody won’t comment. But our sources have been right before, especially when it comes to potential mergers…

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Bridget Jones found herself a super-fit Brit, but Proskauer is still looking for a U.K. mate.

In 2011, lawyers at Proskauer Rose will enjoy snazzy, firm-provided iPads. But they won’t be able to look forward to an influx of British colleagues with super-posh accents.

As reported by Legal Week, Proskauer and SJ Berwin have called off their merger talks, after nine long months of discussions. The extensive snogging will not culminate in shagging.

This year has seen lots of action on the transatlantic merger front — e.g., Hogan Lovells, SNR Denton, and Squire Sanders Hammonds. But it looks like Proskauer Berwin — or Berwin Proskauer, or SJ Proskauer? — will not be coming to pass.

(Unless the firms pull a Kilpatrick Townsend & Stockton or a Newsweek Daily Beast, and merge with each other anyway after declaring their talks dead.)

So what led to the demise of the Proskauer / SJ Berwin merger talks?

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Peter Crossley of Hammonds and James Maiwurm of Squire Sanders

A hot trend for the law firm world in 2010: transatlantic mergers. This year we’ve seen the creation of Hogan Lovells, from Hogan & Hartson and Lovells, and SNR Denton, from Sonnenschein and Denton Wilde. Today we learn of a third U.S./U.K. law firm merger: the combination of Squire, Sanders & Dempsey and the British firm of Hammonds, to form a behemoth with 1,275 lawyers in 37 offices and 17 countries (according to the merged firm’s new website).

The merger was approved by both partnerships over the weekend and will take effect on January 1, 2011. The combined entity will be in the top 25 firms by number of lawyers, with gross revenue of $625 million (based on 2009 figures).

As you may recall, not everyone was a fan of this merger. The famously outspoken John Quinn of Quinn Emanuel, for example, characterized it as “[t]wo rocks that think if they hug each other tight enough they won’t sink.”

But enough of the Debbie Downer sentiments. Let’s look at all the positive aspects of this transaction, shall we?

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