Around The Firms

Reed Smith Gains McCabe and Smith

Reed Smith's San Francisco office has gained two firm leaders. Michael McCabe and Robert M. Smith, formerly of Preston, Gates and Ellis' San Francisco office and Dewey Ballantine's East Palo Alto, CA, office, respectively, are coming on board. In fact, McCabe, who was a managing partner at Preston Gates, will be reunited with Reed Managing Partner David Thompson, with whom he worked at Jackson, Tufts, Cole & Black. Several Reed Smith lawyers worked at Jackson Tufts, as well. McCabe is looking forward to being a part of a firm that has a large presence in California. Smith, who sat across the table during a public offering with Reed Smtih, was given a good impression. He had been with Dewey Ballentine since 1986. According to the head of the firm's East Palo Alto office, Smith departed for Reed Smith because it would minimize his commute. Both Dewey Ballentine and McCabe's former firm, Preston Gates, have plans for expansion.

Morgan Lewis Will Pay Up

In order to prevent litigation with Brobeck, Phleger and Harrison's bankruptcy trustee, Ronald Greenspan, Morgan, Lewis & Bockius will pay Brobeck's estate $10.2 million. Greenspan's lawyer announced the agreement early in September at a hearing before U.S. Bankruptcy Judge Dennis Montali. At press time, Greenspan was to file a motion for the court's approval.

According to Morgan Lewis Chairman Francis Milore, although the trustee's issues were ambiguous, his firm does not want to engage in expensive, protracted litigation. One claim regards revenue resulting from unifnished business brought to Morgan Lewis by Brobeck attorneys. The 1984 court ruling, Jewel v. Boxer, 156 Cal. App. 3d 171, declares a firm's unfinished business to be the dissolved partnership's asset. Morgan Lewis, based in Philadelphia, ventured into unfinished business after its collapse in early 2003, when it brought more than 150 Brobeck employees on board. Greenspan had a similar issue with Clifford Chance, which agreed to pay $3.75 million to the Brobeck estate so that any collapse-related claims could be settled. The agreement is being contested by former Brobeck partners.

At the Montali hearing, there was new counsel for 128 Brobeck parties. In a lawsuit the judge had granted a request by Greenspan for disqualification of Pachulski, Stang, Ziehl, Young, Jones & Weintraub, which had been set up to represent a large group of former Brobeck partners. There is also a possibility that Greenspan will try to disqualify the group's new counsel, , Eliiot Jubelirer of Morgenstein & Jubelirer, who had represented Brobeck against the now-defunct, Dickson, Carlson & Campillo, a Santa Monica, CA, firm.

Piper Courts Gray Cary

Early-stage talks have taken place between Piper Rudnik and California-based Gray Cary Ware & Freidenrich about a possible merger. The two firms are both products of mergers ' and both wish to grow. A merger would be beneficial to Gray Cary, providing it with a substantial East Coast presence, complete with an office in New York. Gray Cary's attorneys also would have a national platform, a Los Angeles office comprising 46 attorneys and the benefit of Piper's real estate, litigation and lobbying groups.

On the flip side, Piper would like more California attorneys, and Gray Cary ' with a presence in Silicon Valley, San Diego, San Francisco and Sacremento ' could satisfy that desire, as well as give Piper a powerful technology practice.

There is another possible merger on Piper's horizon. In fact, this one is close to becoming finalized. The firm is DLA, which is located in the United Kingdom and has 1800 attorneys. This merger would make Piper one of the world's largest firms.

Fish-Ropes Merger No Go

At a meeting in the earlier part of September, Fish & Neave Chairman Jesse Jenner told both staff and attorneys that despite many rumors, his firm has no plans to merge with Boston-based Ropes & Gray. No letter of intent has been signed, and Ropes & Gray will not be gaining 20 more attorneys. Jenner said all that had taken place were preliminary talks, and that Fish & Neaves had spoken with other firms, as well. He said the firm has been getting proposals offers for more than two decades, and that if the right opportunity came along, a merger would be considered. It would need to be one from which both firms would benefit. Recruiters have expressed favorable opinions of a merger between the firms.

In the last year-and-a-half, however, Fish & Neave has faced the departure of a least 12 partners. One of those departees was John Nathan, who did big business for Fish & Neave. The multiple exits have made others contemplate leaving, as well.

It is Jenner's feeling that most of the departures have been caused by the firm's restructured compensation system and retirement program ' both of which occurred in May. Instead of an accrual-based compensation system ' which does not pay partners unless specific work comes in ' there is now a cash-based system, paying them as income is produced. The changes to the retirement plan have not been discussed. However, the former partners tell a different story. Terry Kearney, who left in August to join Wilson, Sonsnini, Goodrich & Rosati, feels that multi-practice firms provide greater compensation and stability.

Reed Smith Gains McCabe and Smith

Reed Smith's San Francisco office has gained two firm leaders. Michael McCabe and Robert M. Smith, formerly of Preston, Gates and Ellis' San Francisco office and Dewey Ballantine's East Palo Alto, CA, office, respectively, are coming on board. In fact, McCabe, who was a managing partner at Preston Gates, will be reunited with Reed Managing Partner David Thompson, with whom he worked at Jackson, Tufts, Cole & Black. Several Reed Smith lawyers worked at Jackson Tufts, as well. McCabe is looking forward to being a part of a firm that has a large presence in California. Smith, who sat across the table during a public offering with Reed Smtih, was given a good impression. He had been with Dewey Ballentine since 1986. According to the head of the firm's East Palo Alto office, Smith departed for Reed Smith because it would minimize his commute. Both Dewey Ballentine and McCabe's former firm, Preston Gates, have plans for expansion.

Morgan Lewis Will Pay Up

In order to prevent litigation with Brobeck, Phleger and Harrison's bankruptcy trustee, Ronald Greenspan, Morgan, Lewis & Bockius will pay Brobeck's estate $10.2 million. Greenspan's lawyer announced the agreement early in September at a hearing before U.S. Bankruptcy Judge Dennis Montali. At press time, Greenspan was to file a motion for the court's approval.

According to Morgan Lewis Chairman Francis Milore, although the trustee's issues were ambiguous, his firm does not want to engage in expensive, protracted litigation. One claim regards revenue resulting from unifnished business brought to Morgan Lewis by Brobeck attorneys. The 1984 court ruling, Jewel v. Boxer, 156 Cal. App. 3d 171, declares a firm's unfinished business to be the dissolved partnership's asset. Morgan Lewis, based in Philadelphia, ventured into unfinished business after its collapse in early 2003, when it brought more than 150 Brobeck employees on board. Greenspan had a similar issue with Clifford Chance, which agreed to pay $3.75 million to the Brobeck estate so that any collapse-related claims could be settled. The agreement is being contested by former Brobeck partners.

At the Montali hearing, there was new counsel for 128 Brobeck parties. In a lawsuit the judge had granted a request by Greenspan for disqualification of Pachulski, Stang, Ziehl, Young, Jones & Weintraub, which had been set up to represent a large group of former Brobeck partners. There is also a possibility that Greenspan will try to disqualify the group's new counsel, , Eliiot Jubelirer of Morgenstein & Jubelirer, who had represented Brobeck against the now-defunct, Dickson, Carlson & Campillo, a Santa Monica, CA, firm.

Piper Courts Gray Cary

Early-stage talks have taken place between Piper Rudnik and California-based Gray Cary Ware & Freidenrich about a possible merger. The two firms are both products of mergers ' and both wish to grow. A merger would be beneficial to Gray Cary, providing it with a substantial East Coast presence, complete with an office in New York. Gray Cary's attorneys also would have a national platform, a Los Angeles office comprising 46 attorneys and the benefit of Piper's real estate, litigation and lobbying groups.

On the flip side, Piper would like more California attorneys, and Gray Cary ' with a presence in Silicon Valley, San Diego, San Francisco and Sacremento ' could satisfy that desire, as well as give Piper a powerful technology practice.

There is another possible merger on Piper's horizon. In fact, this one is close to becoming finalized. The firm is DLA, which is located in the United Kingdom and has 1800 attorneys. This merger would make Piper one of the world's largest firms.

Fish-Ropes Merger No Go

At a meeting in the earlier part of September, Fish & Neave Chairman Jesse Jenner told both staff and attorneys that despite many rumors, his firm has no plans to merge with Boston-based Ropes & Gray. No letter of intent has been signed, and Ropes & Gray will not be gaining 20 more attorneys. Jenner said all that had taken place were preliminary talks, and that Fish & Neaves had spoken with other firms, as well. He said the firm has been getting proposals offers for more than two decades, and that if the right opportunity came along, a merger would be considered. It would need to be one from which both firms would benefit. Recruiters have expressed favorable opinions of a merger between the firms.

In the last year-and-a-half, however, Fish & Neave has faced the departure of a least 12 partners. One of those departees was John Nathan, who did big business for Fish & Neave. The multiple exits have made others contemplate leaving, as well.

It is Jenner's feeling that most of the departures have been caused by the firm's restructured compensation system and retirement program ' both of which occurred in May. Instead of an accrual-based compensation system ' which does not pay partners unless specific work comes in ' there is now a cash-based system, paying them as income is produced. The changes to the retirement plan have not been discussed. However, the former partners tell a different story. Terry Kearney, who left in August to join Wilson, Sonsnini, Goodrich & Rosati, feels that multi-practice firms provide greater compensation and stability.