How Does a Bankruptcy Litigator Move from One Law Firm to Another?

One morning many years ago, when I was getting ready to go to work as an associate at one of Philadelphia's largest law firms, I heard a news report on the radio that Braniff Airlines had filed for protection from creditors under Chapter 11 of the Bankruptcy Code in Orlando, FL the night before. Eleven years later, in a federal appeals courtroom in Atlanta, GA, long after the decision had been made to shut Braniff down and liquidate its assets, I settled the last remaining creditor dispute in the. Hence my career in the interesting and often stress-filled world of Chapter 11 litigation and financial restructuring was launched. Chapter 11 work has not become a "commodity" practice and hopefully never will, but the work can be episodic and uneven, and while litigation skills are essential, it is also quite specialized. So, given these qualities, how does a bankruptcy litigator go about moving from one law firm to another, and what are the pitfalls?

You Can Never Study the New Law Firm Too Much

Law firms are opaque things when viewed from the outside. They are private organizations with extensive privacy and confidentiality obligations, and there is little to no public information available about them. Law firms sometimes believe they can do just about anything in the legal realm (they cannot), so you need to do whatever you can to study the firm and its partners and associates closely to see what they actually do and what their true capabilities and skills actually are. Since Chapter 11 work is not "commodity" work, do not move to a "commodity" firm, where you are likely to encounter a big culture clash and significant business barriers. Learn who the new firm's clients are and how they pay the firm; the actual hourly rates the firm charges for both partners and associates. Higher hourly rates and more sophisticated transactional and commercial practices are probably a good sign if you are a Chapter 11 practitioner looking for fertile ground, while high volume tort and employment defense work probably not. While some commodity exists at all law firms (it helps cash flow), make sure it is not dominant. For example, firms that do a lot of tort defense for insurance companies may not appreciate or even understand what a Chapter 11 litigator does and will not be able to help you build your practice with cross-marketing to the firm's existing clients. Try to talk to as many partners as you reasonably can and ferret out this type of information early. Talk to associates too. They are often a source of overlooked law firm information.

Try to Avoid Firms With Rigid Practice Restrictions

When making a lateral move, be sure the prospective new law firm does not have practice policies or restrictions that will automatically close you out of significant work once you get there. Chapter 11 practice has many facets and many opportunities to represent a variety of parties in a wide range of situations. For example, some law firms will have a "policy" that they will never be adverse to a bank, even if there is no ethical conflict present in being adverse to a bank in a particular matter. It is common in Chapter 11 cases for unsecured creditors or corporate debtors to have disputes with banks, even if the banks are not directly adverse in the traditional sense. If you will never be able to represent unsecured creditors in a bankruptcy case at your new firm because they are potentially adverse to secured creditors like banks, you need to know this in advance. The same can hold true for insurance companies. Look for an entrepreneurial firm culture that is open to new lines of work and new approaches and that allows you to meet your ethical obligations but also gives you the freedom to develop a diverse bankruptcy practice.