Around the Firms

It seems, however, that Altheimer's woeful experience is not uncommon among midsize firms; others seem to have experienced excessive growth a few years ago and then were unsuccessful in their attempt to cut down. This has been the case with San Francisco's Brobeck Phleger & Harrison, which dissolved in February. Another troubled firm was Arter & Hadden, which closed its doors July 15.

In any case, Altheimer's lawyers are faced with finding employment elsewhere; several have already explored options at other firms. Two have already join Chicago's Neal Gerber & Eisenberg, according to Marketing Director Stephanie Hall, and there might be more to come. It also has been reported that the Seattle-based Perkins Coie, which is exploring expansion of its Chicago office, is speaking with attorneys from Altheimer.

Platt Joins Wilmer, Cutler

Charles Platt, the former co-head of LeBoeuf, Lamb, Greene & MacRae's litigation department, recently became a partner in the New York office of Wilmer, Cutler & Pickering. Mr. Platt – whose specialties are complex securities and consumer class actions, inside fraud examinations, and business control contests ' was appointed 11 years by the U.S. Department of Justice as special assistant U.S. attorney for Banca Nazionale Del Lavoro (“Iraqgate”) investigation.

Market Not Strong Enough for DC Fenwick Office

After a failure to gain business from the growth of telecom and life sciences, Fenwick & West, based in Silicon Valley, CA, has shut down its Washington, DC, office. Although the DC office was expanded 3 years ago (it was founded in the mid '80s) to secure some of that commerce, Chairman Gordon Davidson explained that the markets' progress was not substantially swift. Twelve DC attorneys will stay until 2003's end.

Welcome Back, Williams

The Washington, DC, office of New York-based Shearman & Sterling has regained former U.S. Tax Court Judge B. John Williams Jr., one of the leaders of the Internal Revenue Service (IRS)'s concentrated effort against unlawful tax shelters. Williams assisted in the management of the IRS' partial amnesty programs for such shelter users. The American Lawyer, an affiliated publication, reports Shearman & Sterling's number of attorneys makes it the 10th largest U.S. law firm.

Survey Brings Interesting Results to Light

The Altman Weil 2003 Survey of Law Firm Economics has revealed several areas of 2002's events. Not everything was affected negatively by the dismal economy. Here are some statistics reflected in the survey:

• There was an increase in profits per equity partner in U.S. law firm; they rose by 9.8% last year ' a reflection of a combination of increased profits and lower operating cost.
• Per lawyer revenue, on a cash basis of accounting, also was up. It seems that the larger firms (more than 150 attorneys) made out better than the smaller ones (fewer than nine attorneys): revenue per lawyer of $457,088 compared to only $292,100.
• Plaintiff's Contingency Litigation and Intellectual Property were the two practices with the highest average total revenue per attorney ' $589,735 and $554,018, respectively. IP was the most profitable practice area. The survey did reflect, however, a slight decrease in average total expense per equity partner (excluding shareholder compensation in professional corporations) and in overhead per attorney (disregarding all lawyer recompense). The biggest increase in expense was in malpractice insurance (29.4%).
• Attorneys in the largest U.S. law firms had the distinction of recording the most billable hours.
• New graduates who joined firms with more than 150 lawyers earned, in their first, year, $95,000 as their median, with the median for those newcomers at firms with 21-40 lawyers approximately $30,000 less.

To inquire about purchasing the survey, please call 888-782-7297. You also can visit the firm's online store at https://store.altmanweil.com.

Perkins Coie Sanctioned

Perkins Coie has been slapped with a sanction by a federal bankruptcy judge in Montana, reports the Missoulian. Judge Ralph Kirscher chided the Seattle firm for failing to disclose a conflict-of-interest waiver it signed with Wells Fargo Bank, the major secured creditor against the former Jore Corp. Kirscher ordered Perkins Coie to disgorge more than $620,000 in fees collected from the failed toolmaker. According to court records, Perkins Coie billed the bankrupt Jore Corp. some $1.6 million in fees for 7,161 hours of legal work and $215,765 in expenses. To the extent that the firm can demonstrate that some of the work it performed would be work the bankruptcy court would otherwise have had to do, it may be able to receive reimbursement for some of the expenses. Perkins Coie has denied wrongdoing.

No Cooley Orrick Merger

Last month, sources revealed that Cooley Godward and Orrick, Herrington & Sutcliffe have abandoned merger talks. The firms had been in discussion since the beginning of 2003. Firm leaders would not give a confirmation either way. As far as the search for merger partners goes, Orrick is thinking about acquiring Venture Law Group, a corporate boutique based in Menlo Park, CA, with which it has had a client-sharing agreement for approximately 4 years. Though the status of discussion between the two firms is unclear, last May, a United Kingdom publication was told by Craig Johnson, Venture Law's co-founder, that the two firms had discussed a possible union.

But Cooley Does Have New Counsel

Late in July, Cooley Godward LLP, of Palo Alto, CA, let it be known that it has instituted a new position: The firm's first pro bono counsel is Maureen Alger, a resident in the Palo Alto office. She is responsible for the expansion and improvement of the firmwide pro bono practice. A Columbia Law School graduate, she joined the firm four years ago having previously held a clerkship with the U.S. Court of Appeals for the Sixth Circuit. Cooley Godward's chairman and chief executive officer, Stephen Neal praised Alger's efforts, and said that the growth of the practice will strengthen the firm's pro bonus services ' an vital part of Cooley's dealings and culture.

Chicago's Altheimer & Gray, 88 years old, is due to close its doors by Nov. 1. However, there has been some speculation regarding the reason for the firm's demise. Staff memos have placed the blame on a slackening of corporate mergers. But another view comes from six attorneys connected in one way or another with the firm, and this is that while the economy has caused suffrage, it is not entirely the reason for the closing. It seems that although the firm had been trying to trim, too many long-term partners who were failing to yield sufficient profits were being retained at payment levels that were too high. A former partner, who departed early this year, said that Altheimer faced the recent loss of many good attorneys ' some who were just the kind the firm needed in order to advance. Altheimer also faced the departure of several key partners during the past few years and also had a poor overseas performance. But although 24 equity partners left between 1998 and 2002, there was an increase in profits per partner ($410,000 in 1998 to $570,000 in 2000). According to affiliate publication The American Lawyer, last year this evened out at $505,000. An attorney privy to the firm's business dealings revealed that 2 years ago, Altheimer tried unsuccessfully to effect a merger partner in New York. A firm partner stated that while Altheimer had sufficient assets to cover its debt – said to be $30 million ' the cash flow was not enough to meet monthly payroll for approximately 9,000 employees. There was another theory reported in The American Lawyer and elsewhere, though current and former partners downplayed it. This was that partner Gerry Chico's shift in focus from firm business to politics (his 2004 Senate campaign) caused attrition in the firm's government relations practice. Supposedly this particular practice had an advantage with the political connections of Chico, who once was chief of staff to Richard M. Daley, Chicago's mayor.

It seems, however, that Altheimer's woeful experience is not uncommon among midsize firms; others seem to have experienced excessive growth a few years ago and then were unsuccessful in their attempt to cut down. This has been the case with San Francisco's Brobeck Phleger & Harrison, which dissolved in February. Another troubled firm was Arter & Hadden, which closed its doors July 15.

In any case, Altheimer's lawyers are faced with finding employment elsewhere; several have already explored options at other firms. Two have already join Chicago's Neal Gerber & Eisenberg, according to Marketing Director Stephanie Hall, and there might be more to come. It also has been reported that the Seattle-based Perkins Coie, which is exploring expansion of its Chicago office, is speaking with attorneys from Altheimer.

Platt Joins Wilmer, Cutler

Charles Platt, the former co-head of LeBoeuf, Lamb, Greene & MacRae's litigation department, recently became a partner in the New York office of Wilmer, Cutler & Pickering. Mr. Platt – whose specialties are complex securities and consumer class actions, inside fraud examinations, and business control contests ' was appointed 11 years by the U.S. Department of Justice as special assistant U.S. attorney for Banca Nazionale Del Lavoro (“Iraqgate”) investigation.

Market Not Strong Enough for DC Fenwick Office

After a failure to gain business from the growth of telecom and life sciences, Fenwick & West, based in Silicon Valley, CA, has shut down its Washington, DC, office. Although the DC office was expanded 3 years ago (it was founded in the mid '80s) to secure some of that commerce, Chairman Gordon Davidson explained that the markets' progress was not substantially swift. Twelve DC attorneys will stay until 2003's end.

Welcome Back, Williams

The Washington, DC, office of New York-based Shearman & Sterling has regained former U.S. Tax Court Judge B. John Williams Jr., one of the leaders of the Internal Revenue Service (IRS)'s concentrated effort against unlawful tax shelters. Williams assisted in the management of the IRS' partial amnesty programs for such shelter users. The American Lawyer, an affiliated publication, reports Shearman & Sterling's number of attorneys makes it the 10th largest U.S. law firm.

Survey Brings Interesting Results to Light

The Altman Weil 2003 Survey of Law Firm Economics has revealed several areas of 2002's events. Not everything was affected negatively by the dismal economy. Here are some statistics reflected in the survey:

• There was an increase in profits per equity partner in U.S. law firm; they rose by 9.8% last year ' a reflection of a combination of increased profits and lower operating cost.
• Per lawyer revenue, on a cash basis of accounting, also was up. It seems that the larger firms (more than 150 attorneys) made out better than the smaller ones (fewer than nine attorneys): revenue per lawyer of $457,088 compared to only $292,100.
• Plaintiff's Contingency Litigation and Intellectual Property were the two practices with the highest average total revenue per attorney ' $589,735 and $554,018, respectively. IP was the most profitable practice area. The survey did reflect, however, a slight decrease in average total expense per equity partner (excluding shareholder compensation in professional corporations) and in overhead per attorney (disregarding all lawyer recompense). The biggest increase in expense was in malpractice insurance (29.4%).
• Attorneys in the largest U.S. law firms had the distinction of recording the most billable hours.
• New graduates who joined firms with more than 150 lawyers earned, in their first, year, $95,000 as their median, with the median for those newcomers at firms with 21-40 lawyers approximately $30,000 less.

To inquire about purchasing the survey, please call 888-782-7297. You also can visit the firm's online store at https://store.altmanweil.com.

Perkins Coie Sanctioned

Perkins Coie has been slapped with a sanction by a federal bankruptcy judge in Montana, reports the Missoulian. Judge Ralph Kirscher chided the Seattle firm for failing to disclose a conflict-of-interest waiver it signed with Wells Fargo Bank, the major secured creditor against the former Jore Corp. Kirscher ordered Perkins Coie to disgorge more than $620,000 in fees collected from the failed toolmaker. According to court records, Perkins Coie billed the bankrupt Jore Corp. some $1.6 million in fees for 7,161 hours of legal work and $215,765 in expenses. To the extent that the firm can demonstrate that some of the work it performed would be work the bankruptcy court would otherwise have had to do, it may be able to receive reimbursement for some of the expenses. Perkins Coie has denied wrongdoing.