Stein Ray's Robert Harris
Small construction firm, slammed by economy, lays off nearly a third of its associates
November 11, 2008
CHICAGO — Stein, Ray & Harris, a construction law firm with 21 lawyers in Chicago, laid off nearly a third of its associates after construction litigation failed to increase as much as the firm expected this year.
The firm laid off four of its 14 associates this month after hiring seven attorneys earlier this year in anticipation of an increase in construction litigation linked to the economic downturn, said Robert Harris, a partner at the firm. The jump in such litigation "hasn't materialized," though it's early in the cycle and that may change, he said.
As construction projects across the country have run into financing troubles amid the credit crunch some developers, contractors and architects have turned on each other to recoup losses. Partner Jeff Winick said clients have approached litigation more tentatively than the firm expected because of uncertainty in the markets. "They're assessing the situation carefully before they commit to litigation," he said.
The firm made the layoffs this month with the understanding that this will be a one-time event with no additional layoffs on the horizon, Harris said.
Stein Ray now has 10 associates and 11 partners in a two-tiered partnership. In addition to construction litigation, the firm also provides legal management of construction projects and works on drafting and negotiating the contracts involved in the building process, including design and construction agreements.
Stein Ray says that it's the largest such firm in the Midwest. The firm's clients have included Fluor Corp., Kiewit Corp., Bovis Lend Lease, the University of Chicago and Duke Energy Corp., among others.
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