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N.Y. Firms Remain Strong in D.C. Despite Slight Drop in Numbers
The National Law Journal
October 26, 2009
New York-based firms scored some high-profile work as part of the U.S. government's response to the economic meltdown. But that has not touched off a hiring boom in their Washington, D.C., offices, the Legal Times 150 survey shows.
Overall, New York players saw head count decline 2.8 percent between April 2008 and April 2009, the period covered by the survey. Of 19 New York firms that made the Legal Times' 150, 11 posted decreases. The hardest hit include Chadbourne & Parke, down 16.1 percent; Kaye Scholer, down 13.3 percent; Epstein Becker & Green, down 13 percent; Kelley Drye & Warren, down 10.1 percent; and White & Case, down 9.1 percent. Skadden, Arps, Slate, Meagher & Flom, the New York firm with the largest office in Washington, D.C., saw its head count slip from 320 to 308 lawyers, a 3.8 percent drop.
That said, the overall decrease represents just 47 lawyers out of 1,685 employed in the D.C. offices of New York-based firms. And with the Obama administration beefing up regulatory enforcement, many Washington-based managing partners say they expect their offices to take center stage during the coming year.
The Washington office of Weil, Gotshal & Manges posted the highest increase among the New York group -- 23.9 percent -- adding 16 lawyers, including four partners, in a range of practice areas. Since the April 1 cutoff date for the survey, the firm has picked up another three intellectual property partners and six associates from McDermott Will & Emery, said Michael Lyle, managing partner of Weil Gotshal's Washington office.
Lyle attributed the firm's success to the right combination of practices to ride out the economic downturn. He said the Washington office focuses on three areas: corporate, litigation and bankruptcy.
"When our corporate practice takes a hit, our bankruptcy practice kicks in and allows us to compensate," Lyle said.
Weil Gotshal has been working on some of the largest bankruptcies in this recession -- indeed, in history. The firm, including lawyers from the Washington office, has advised Lehman Brothers, General Motors Corp. and Washington Mutual Inc. It also represents AIG Inc. on its global divestiture and restructuring program.
Jeffrey Cunard, managing partner of Debevoise & Plimpton's Washington office, said his firm was able to post a 9.4 percent increase this year by relying on a somewhat less dramatic strategy.
"We've added between two and five lawyers each year for the past four years," he said.
Willkie Farr & Gallagher saw the excitement shift to Washington in the most tangible way possible: money.
Although the Washington head count rose only 0.9 percent, Jack Nusbaum, managing partner of the office, said Washington profits were up this past year while New York profits were down.
"There's no question that we have tried to bring the D.C. office and the New York office closer together," Nusbaum said. "When New York is down, Washington is there to bring it up."
Among the other firms that posted increases in office size were Sullivan & Cromwell, which played a key role in negotiations over a rescue package for Fannie Mae and Freddie Mac. The firm's office grew to 44 lawyers from 39. Cleary Gottlieb Steen & Hamilton added five lawyers to climb to 108 lawyers in Washington.
At the other end of the spectrum, Chadbourne & Parke lost nine lawyers. Washington managing partner Andrew Giaccia said the office has added three partners and replaced the laid-off associates since the Legal Times 150 survey's April cutoff date.
Cadwalader, Wickersham & Taft, which has been working with the U.S. Treasury Department on the Troubled Assets Relief Program, posted a slight drop in head count, falling 2.5 percent, but Raymond Banoun, head of the Washington office, said the numbers do not tell the full story. One partner actually moved to the firm's New York office, Banoun said. Since the April cutoff, one counsel and one associate have also switched to the New York office.
Cadwalader's Washington office has not had any layoffs but did shift three real estate and finance associates to its litigation practice because, Banoun said, that practice needed to bulk up.
In June, the Washington office moved to a new location at 700 Sixth St. N.W., which has room for about 20 more lawyers.
"If anything, the downturn has helped the Washington office because it has given us reason to get together more tightly," Banoun said. "That, and we're busy, which helps a lot."
