Worker Adjustment Retraining and Notification (WARN)

Last night, when we reported the news of secretarial staff layoffs at Dewey & LeBoeuf, we mentioned a prediction of additional layoffs today — i.e., Tuesday — or later in the week. That prediction has already come to pass — like so many predictions about Dewey, sadly.

Last night, they came for the secretaries. This time, they’ve come for the associates….

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The U.S. employees of Dewey & LeBoeuf received a letter today that many of them have been expecting for a long time.

It was a note warning people to prepare for the worst. It was a letter finally admitting to firm employees that “it is possible that adverse developments could ultimately result in the closure of the firm.”

So, now we’re on notice…

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Although Howrey LLP officially dissolved as a partnership as of March 15, some operations continued beyond that date. But at the close of business today, the firm is going into a more complete shutdown, due to a withdrawal of bank financing.

“Last night, we received notice via email that Howrey is closing as of today, because CitiBank refuses to pay the payroll,” one source reported. “CitiBank has also refused to pay our PTO [paid time off], and our pension contributions.”

“Citibank has closed the door on Howrey operations today, more than a month before the May 9th date listed on WARN notices,” a second tipster confirmed. “No PTO, pensions will be paid out.”

UPDATE (6 PM): Citi takes issue with Howrey’s take on events. From a Citi spokesperson: “We are deeply disappointed in Howrey’s mischaracterization of the situation. Citi is not responsible for the employment practices of a client and has acted in a professional manner throughout this process.”

The full Howrey memo, after the jump.

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Firm shutting down today, after Citi pulls plug.


The partners of the law firm of Howrey LLP, founded in 1956, have voted to dissolve the existing Howrey partnership. The dissolution will take effect on March 15, 2011, according to a press release that was issued earlier tonight by the firm.

The firm’s chairman and CEO, Robert Ruyak, has not been the most popular person during Howrey’s long and painful disintegration (which arguably started over a year ago, with some key partner defections). But few would disagree with the statements he made this evening.

“This is a very difficult time for our firm, for our attorneys and for our staff,” Ruyak said. “Many of us have spent our entire legal careers at Howrey and remain proud of what we built. We find some solace in the fact that our people have been so well received by their new firms. They are first class professionals and deserve the respect accorded to leaders in their fields.”

We extend our sympathies to everyone at Howrey who will be affected by the firm’s demise, and we wish them the best of luck as they search for new workplaces. Many superb lawyers and staff have worked at Howrey over the past 55 years, and as we’ve chronicled in these pages, many are being courted and welcomed by other law firms — a testament to their talents and abilities.

Additional commentary and links, as well as the full press release, appear below.

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