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Going to Heller in a Handbasket? (Part 1)

Heller Ehrman LLP Above the Law blog.JPGIt appears that lots of things are going up in smoke out west. From Blogonaut:

Two weeks ago the 700-lawyer San Francisco firm announced 65 staff were laid off. Now Heller has lost two leading and loyal partners to rival firms.

Patricia Gillette, a co-chairwoman of Heller Ehrman’s the labor and employment practice has defected to Orrick, Herrington & Sutcliffe along with another labor partner and four associates, the Recorder reports.

This defection in San Francisco comes at the same time that Jerry Marks, Heller's Los Angeles managing partner and a well-known securities litigator, is jetting for Milbank, Tweed, Hadley & McCloy.

Not good news. A slowdown in work, staff layoffs, and partner defections are the hallmarks of a law firm implosion. They've foreshadowed the demises of several firms over the years, such as Brobeck and Testa Hurwitz.

Remember how the Heller Ehrman summer associates were grumpy over not getting paid at the $160K level? At this rate, they should be grateful to have somewhere to go after graduation.

Speaking of the Heller Ehrman summers, we have a summer associate story not previously posted, after the jump.

As you may recall, in honor of Aquagirl, we present our summer associate stories according to a superhero theme:

Superhero name: The Rake
Special power: Ability to find new and innovative ways to spend time not working.
Summered: Heller Ehrman, summer 2007
Claim to fame: Organized a mid-day poker game at the office with fellow summer associates. As with any poker game, it would not be complete without some alcohol. He was also skilled in his use of technology as he left a paper trail of e-mail invitations to many other co-workers.
What happened to him: Not clear -- if we find out, we'll note it here.

Heller Ehrman Showing Signs of Distress [Blogonaut]
Heller's L.A. Chief May Be Headed to Milbank [Cal Law / Legal Pad]
Key Heller Partners Jump Ship [The Recorder (subscription)]

Earlier: The Heller Ehrman Layoffs: Don't Believe the Spin?


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Comments

Fiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiirrrrrrrrrrrrrrrrrrrrr

first?

rrrrrrrrrrssssssssssstttttttttt!!!!!!!!!!!!!!!

You are all losers.

Any idea why Heller might be "imploding"? Low ppp? Clients defecting? Bed bugs?

From worst to FIRST!!

I wonder if these problems are specific to Heller, or if this is the begining of an industry wide shakeout. Not good news either way.

"Remember how the Heller Ehrman summer associates were grumpy over not getting paid at the $160K level? At this rate, they should be grateful to have somewhere to go after graduation."

Yeah, that's a perfect rational response to these pieces of news. I used to like this website, but increasingly you've become an overhyping machine, blowing everything entirely out of proportion. I know you want to generate traffic & make your stories sound interesting, but keep a little perspective man. Seriously.

lack of 401(k) contributions is really killing morale around here

1:59 - It's a legal TABLOID! TABLOID! TABLOID! This place was NEVER supposed to be all respectable, etc - get over yourself.

Whatever, 1:59. Your partner will probably leave next. Hopefully there will be a spot in-house for you.

Hey, L2L, did you notice that she's a practice group leading rainmaker even though she went to USF Law?

The labor and employment group was like the least profitable group at Heller. Seriously. This will actually bring PPP *up* slightly.

USF rocks.

Not to mention that two of their San Diego partners along with 10 or so associates, or basically the entire corporate department, also jumped ship to Goodwin Procter's new SD office just six months ago. Just look at the bios. Everyone one of them used to work at Heller. That firm is having trouble.

1:59 and 2:20 - Get back to updating your resumes. You are obviously both Heller associates in a state of shock/denial. Move to the next step of acceptance and pray.

Heller is about to burn down just like San Diego (which means a whale's vagina).

yay milbank

NY to 190
NY to 190

That's right, 2:20. It still is the least profitable, since the rainmaker and worker partner left with good leverage (2:1) and all Heller kept was deadweight partners. I hope you don't think Orrick lost money on the poach?

And your group is still the second least profitable, so gird for the axe.

Piercie, quit trying to pass yourself off as lat. We all know lat's writing style, and this not it. Can't we get ATL to 190k so we can get him back to doing Watchallian hours? With that fuckup Merck now 'Piercie' Ive had enough.

The "linkbait" comment on Lat's Mid-Law post and the "Layoff Watch" headline on the Pearson post are definitely Lat. 2:34(2), I think you're the real Piercie.

NY to 190
Ny to 190

Wow. Seems poor Heller is a losers' firm now.

I don't work at Heller and I don't know anywhere there, but I can't help but think this is at least a little overblown.

This is boring. Can we talk about which is the better career goal: doctor or lawyer? I'm leaning toward doctor because of money and prestige.

Probably a bit premature to start predicting the implosion of a 700 lawyer firm. Attorneys (even partners!) join and leave firms all the time, and it doesn't mean that a firm is going down. And who cares about summer associate salaries?

Also, Heller still has top notch practices in several areas. Even if the firm takes a few hits, it's likely to keep doing just fine.

Heller is a second tier firm.

What big firm couldn't stand to lose 65 staff? I know it's terrible news for weekday eBay bidding, but axing 65 secretaries is undoubtedly smart business.

Is that summer associate story really a big deal? I know people who did similar things, and none of them seemed to encounter any problems.

I have no connection to Heller, but good work instantly dismissing my comment as stemming from in-house bias.

And yes, I'm aware this is a tabloid. But there are OK! & US Weekly-style tabloids, and then there's the National Enquirer, for inquiring minds. ATL is beginning to resemble the latter, sadly.

What big firm "couldn't stand to lose" 65 staff?

The real question is WHY?

Reader (1:59): I used to like tuna fish sandwiches. Now I don't. So I don't eat them any more.

2:34, this was the entire labor and employment group. There's none left. It was a very small group--2 partners and 4 associates. Orrick did lose money in the poach--they're banking on upside.

Losing a 7 lawyers (including 3 partners) is not necessarily a sign of "implosion" if you're a 700 person firm. It's a 1% loss (and less in revenue, given who left).

Very witty 3:18; perhaps I'm suggesting doing something similar as to my [and others'] blog reading habits.

The management of Heller Ehrman decided a number of years ago that its traditional values were non-economic, and maybe so. This is sad. But the fact that the history and legacy of this great firm was abandoned for a model which FAILED, is trag-- okay, it isn't tragic. But it is a bummer, because Heller Ehrman was once a great place. No more.

About the "Raker" - I'm pretty sure you are talking about a summer who sat next to me. The "incident" was not an incident at all. It happened on the last day of the summer, when all the summers were done with their work, and they were just waiting around to go to the last boozathon. So they played some cards and split a six pack among maybe 4 or 5 people. I don't think anybody noticed beside people in the offices right next door. I don't know if this became some sort of law school legend - and thereby prompted a tip to LAT, but it really was about as far from scandalous as you can get.

Too bad, I miss the days of Skadden emails and Chelsea Piers diving.

"What big firm couldn't stand to lose 65 staff?"


One that was properly staffed (i.e., well-managed) in the first place.

Well said 5:29.

Not to mention the managing partner of the LA office and a 17 year SF partner (and her entire practice group) jumping ship in one week.

so glad I didn't accept their offer

03:19 PM is in denial.

Nobody has heard of this firm East of the CA fire line.

Definitely in denial.

In addition to the RECENT mess, half the SD branch up and left at the beginning of the summer, their singapore office is now represented by ONE attorney ever since the lead partner in that location cut and ran and some of their bigger names in China have also jumped ship.

This place has been in some trouble for years. Overexpansion, poor management and cutting loose some of their better employees has come back to haunt them. The firm is in trouble, hands down. And don't ONLY believe what you read. Just because they're not 'announcing' other losses doesn't mean they're not happening.

re: 3:56

I agree with you, but it's a sad profession where "they played some cards and split a six pack" is something that is normal and acceptable.

12:09am - are you kidding? The only problem I see with this is that it was at "midday" instead of 3 or 4 o'clock. I don't see any reason why colleagues shouldn't be able to have a couple of beers and/or play cards on occasion (read: Friday afternoons once every two or more months). We have BS cocktail parties more than once a month. As long as no one is disturbed, there is no excessive drinking, and it is not so frequent as to interfere with work, I see no reason why the fact that "they played some cards and split a six pack" should not be normal and acceptable.

Your comment makes this a sad profession. And your mom does, too.

re 12:09 and 10:14,

The poker game took place on the last day of the summer program, after the summer associates were officially discharged. Not quite Aquagirl...

http://legalpad.typepad.com/my_weblog/2007/10/corporate-partn.html

Legal Pad post at 5:42 last night:

"Corporate partner Kyle Guse has jumped from the firm’s Silicon Valley office to McDermott Will & Emery. Guse told Legal Pad that the current rumblings at the roughly 700-lawyer Heller had nothing to do with his decision to leave."

Hmmmm.

This-ship-is-sinking.

I used to work at heller and blame any problems in the NY office on management. Joe McLaughlin is the WORST manager (and a pretty awful person to boot). He pretty much ruined a decent place to work.