Biglaw, Politics

When People Start Writing About You Destroying Your Firm, Things Aren't Going Well

The New York Law Journal asks if Marc Kasowitz is hurting his firm. That's never a good sign.

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Marc Kasowitz (screenshot via YouTube)

Marc Kasowitz (screenshot via YouTube)

The headline in the New York Law Journal is an ominous, but ultimately benign, “Trump Case Leaves Marc Kasowitz’s Law Firm at a Crossroads.” The URL, however, reveals that at some point in the life of the story it was titled “Could Marc Kasowitz Save the President and Lose His Law Firm?”

That’s… more ominous.

And the fact that this sentiment made the leap from “what we’re all thinking” to the relatively staid pages of the New York Law Journal should worry anyone associated with the Kasowitz firm. On the bright side, there are enough unfilled ambassadorships right now for the rest of the firm to follow David Friedman’s lead.

There’s a reason firms are falling all over themselves to avoid working for Donald Trump. A notoriously meddlesome client with a well-documented history of stiffing his vendors would be reason enough to steer clear before adding that he’s the least popular person in the country. No one wants the attention that comes with carrying water for this administration. When Marc Kasowitz took on this job, none were happier than Jones Day, who thrilled at the opportunity to slink out of that ignominious limelight.

But Kasowitz’s firm — already down almost 100 attorneys and facing an over 7 percent revenue hit — faces unique risks that his high-profile turn only exacerbates. As the New York Law Journal puts it:

Few firms in the Am Law 200 have first-generation partners still running their firms. “Transitioning from a first-generation partnership to second generation is probably the hardest thing any firm does,” said legal management consultant Peter Zeughauser, speaking generally on succession planning. “And only a small number of firms make it when they have a single dominant partner.”

As managing partner of a large firm, Kasowitz, 64, stands out for his close involvement in his firm’s operations, including many of its most high-profile cases. He’s not just a rainmaker who steps back after cases are brought in, said one attorney keenly familiar with the firm.
“He’s going to be involved in anything important,” the attorney said. “Even though it’s a partnership, it’s his firm and he’s the leader.”

“How long can this firm last beyond Marc? … Most people feel it would break apart,” the lawyer said.

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Kas FineAnd this doesn’t deal with the compounding embarrassments heaped on the firm from its… shall we say “lackluster” drafting skills, questionable grasp of ethical obligations to the unrepresented, and reports that Kasowitz is going around implying that there’s fire underneath Trump’s smoke.

Thankfully for Marc Kasowitz, he’s got decades of results and existing client relationships that’ll keep business coming through the door despite these missteps. But new clients might get skittish when they start evaluating their options. Putting aside clients, why would any attorney want future potential employers scanning their résumé and wondering how they spell “Predisent”? Recruiting the next generation is a big part of midwifing a firm from its founders to the new guard, and this isn’t doing that process any favors. The reputational damage may be surmountable, but it is palpable.

Only time will tell where Kasowitz Benson goes from here. But it’s worth keeping an eye on the lateral market. The firm has already lost several key partners over the last year. It might just lose several more.

Trump Case Leaves Marc Kasowitz’s Law Firm at a Crossroads [New York Law Journal]

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HeadshotJoe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.

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