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Risk of Lawsuits Over Legal Recruiting Fees

By Anthony Lin
October 30, 2006

In May, just 1 month after Akin Gump Strauss Hauer & Feld announced Chang-Joo Kim had joined its New York office as a partner, the law firm cut a check to recruiting firm Boston Executive Search for $227,500.

But did it pay the right recruiter? New York search firm Sivin Tobin Associates says it sent Akin Gump a package about Kim last December, along with a term sheet. Sivin Tobin is now suing the law firm, alleging breach of an implied contract. In September, Manhattan Supreme Court Justice Jane S. Solomon denied Akin Gump's motion to dismiss.

The dispute highlights the frequently less-than-well-oiled mechanics of the legal recruiting process, even as firms have become increasingly reliant on lateral partners and associates for growth. Though actual lawsuits are rare, both firms and recruiters agree clashes are common.

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