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Epstein Becker to Settle Suit With Recruiter
The American Lawyer
October 02, 2008
Epstein Becker & Green says it has agreed in principle on Wednesday to settle a lawsuit with a recruiting firm that claimed it was owed money for nabbing five health care lawyers from Powell Goldstein.
The lawsuit, filed two weeks ago in Fulton County Superior Court in Georgia, was the latest recruiter pay dispute to make its way to court. A Manhattan judge in April threw out a recruiter's suit against Akin Gump Strauss Hauer & Feld; Philadelphia's Blank Rome defeated a similar case in May.
In the latest fight, Counsel Search, a small recruiting outfit based in Atlanta, says it helped Epstein Becker hire two partners and three associates in January. The law firm, according to the complaint, refused to pay the total commission owed, and Counsel Search sued, seeking more than $169,500 in damages.
Recruiters suing law firms could be seen as akin to biting the hands that feed them, says Marina Sirras, president of the National Association of Legal Search Consultants, who says she "absolutely would not" take a dispute to court. Yet, with partner moves on the rise, and with the number of recruiters nationally growing, legal disputes seem almost bound to happen.
"I think there are a lot of aggressive recruiters out there, and there hadn't been as much partner movement as there is now," says Sirras, speaking for herself and not the association.
Epstein Becker first used Counsel Search in 2005, according to the complaint. At that time, the firms agreed that Counsel Search's placement fee would be 25 percent of the first year's cash compensation for each lawyer it brought Epstein Becker, a rate that's generally within industry standards. The agreement covered both direct and indirect introductions, the complaint says.
In January 2008, Epstein Becker announced it hired health care partners William Boling Jr. and David Winkle from Powell Goldstein's Atlanta office. Epstein also hired three associates, Adam Walters, R. Ross Burris III and Jonathan Kendall. Counsel Search says it "presented or introduced" the firm to each of the lawyers.
The recruits were part of Epstein Becker's efforts to expand its national health care and life sciences practice. Other hires included Adrienne Marting, also of Powell Goldstein, who was brought on in 2007. It added another 11 attorneys to the practice, mostly through first-year hires and transfers but also through some poaching.
Counsel Search claimed it was owed its arranged 25 percent commission for the newest five recruits. But Epstein Becker, the complaint says, "[had] not paid and refuses to pay the total amount owed" for the placement.
Counsel Search in its complaint said it was owed $169,500 plus interest. The complaint says if Epstein Becker paid within 10 business days of filing, it could avoid paying Counsel Search's attorney fees as well. That deadline was Wednesday, when, coincidence or not, the suit settled. "The parties have reached an agreement in principle on this matter," a spokesman for Epstein Becker said. "Terms are confidential."
Epstein Becker was represented by Atlanta litigation partner Jeffrey Lewis. Counsel Search was initially represented by Chamberlain Hrdlicka partner Gary Freed, but in the last couple days, McGuireWoods labor partner Mark Keenan in Atlanta has taken over.
Epstein Becker had $203.5 million in revenue in 2007 and profits per partner of $670,000.
This article first appeared on The Am Law Daily blog on AmericanLawyer.com.
