In Hot Lateral Market, Some Lawyers Forced to Cool Their Heels
It's not just Kirkland & Ellis. Contractual 'hold' provisions have recently delayed lateral moves in Texas to Gibson Dunn, Sidley Austin and Shearman & Sterling.
August 07, 2018 at 02:13 PM
4 minute read
The original version of this story was published on Texas Lawyer
Image credit: Joachim Wendler/Shutterstock.com Kirkland & Ellis a six-month notice provision Weil, Gotshal & Manges market where there's much lateral activity Shearman & Sterling moved into Texas in March in Austin Baker Botts held a group of oil and gas lawyers Baker Botts faced the same issue in 2017 Gibson, Dunn & Crutcher Weil held a group of lawyers Sidley Austin Baker Botts initiated its 90-day leave policy after Latham & Watkins opened its Houston office in 2010 and quickly poached partners, according to a source familiar with the policy. Since then, with more Big Law firms opening firms in Texas or expanding with additional offices, and lawyers with big books of business being lured to competitors, reports of holds are cropping up on a more regular basis.Bill Cobb, a firm consultant in Houston at Cobb Consulting, said the enforcement of hold provisions has become more of an issue because the market is so competitive, and because the lawyers making lateral moves likely control clients that provide considerable revenue.'So Much Change'Unlike Crews, the Baker Botts counsel who can't move immediately to Kirkland, high-profile corporate lawyer Sean Wheeler joined Kirkland as a partner in Houston on July 30 without a firm-imposed delay, coming from Latham & Watkins' Houston office.Wheeler said he stayed at Latham for three weeks after putting in his notice, simply because he was working on an M&A project for a client, and wanted to see it through. He said that while Latham's partnership agreement includes a six-month hold provision, he's not aware of any instance when the firm has enforced it, and said lawyers typically depart the firm within a week or two.He said that when he joined Latham in 2010, he only stayed at Baker Botts for about five days after his notice. He said the firm instituted the 90-day hold provision in the partnership agreement shortly after he and partner Michael Darden (now at Gibson, Dunn & Crutcher in Houston) left for Latham.Wheeler suggests that firms may frustrate clients when they hold lawyers to a lengthy notice period."There's been so much change in the Texas market over the last 10 years, I think some firms just view it as a way of possibly forestalling the loss of business ... I'm not convinced it helps anyone retain a client for a long period of time," said Wheeler, who was named a Dealmaker of the Year by The American Lawyer in 2015.Hugh Tucker, the oil and gas partner whose departure from Baker Botts was delayed this spring, said in May that the 90-day hold was frustrating because the partners were anxious to get things rolling at Shearman. “It's one of those things that you wish you didn't have to go through, but I certainly understand the rationale for doing so,” he said.Bill Pollard, a solo practitioner in Austin who prepares partnership agreements for firms, said firms can benefit from hold requirements because they have flexibility to waive them or to enforce them and use the time to try to retain clients.But Pollard said most of the partnership agreements he's handled have been for relatively small firms—up to a dozen lawyers—and he hasn't included hold provisions. "Those [firms] are just not big enough where that kind of provision would be meaningful enough to be in there," he said.
sued litigation settled in May 2017 Read More: Weil Holding Departing Dallas Counsel to 6-Month Notice Period
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDechert 'Spark Tank' Competition Encourages Firmwide Innovation Focus
Akerman Opens Charlotte Office With Focus on Renewable Energy, Data Center Practices
4 minute readDLA Piper Sued by 2 Houston Companies, Alleging a 'Fake Lawyer' Represented Them in Argentina
3 minute readTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250