Latham & Watkins chairman Bill Voge's resignation from the firm this week, over what Voge called "a lapse of judgement" and Latham called "the exchange of communications of a sexual nature," was nothing if not abrupt.

But lawyers and legal PR professionals say it was critical that Voge was removed from his position before news of his alleged behaviour spread – even though the conduct appeared to be confined to his personal life. 

Latham referred to Voge's departure as a "resignation" but made clear that its executive committee found his behaviour – while not illegal and not involving Latham itself – to be "not befitting the leader of the firm".

It's important to note that Latham's statement said that Voge voluntarily disclosed the communications that were found to be inappropriate, said Shira Scheindlin, a former US District Court judge in New York who now practices at New York firm Stroock & Stroock & Lavan.

"I have written that there is some process due to a person before they are terminated, but that's if he denies," the misconduct, she said. "Once somebody has acknowledged that level of inappropriate conduct and they are the face of the firm, it is wise not to allow them to remain in that position."

Gina Rubel, CEO of PR firm Furia Rubel Communications, said Latham had "no choice" but to remove Voge, particularly in light of the #MeToo movement.

"Depending on the type of allegations and the type of issues, law firms and all companies alike have a fiduciary duty to their employees and their clients," Rubel said. "If I were their communications manager or doing their PR, I would absolutely remove him."

Businesses and firms "assiduously cultivate and protect their brand", said ArgoPoint managing partner Jason Winmill, a consultant to Fortune 500 corporate legal departments. The reputation of their leader "is central to that image", he said.

"From what I've read of the story, this seems like a case of an executive of a very prominent business organisation that appears to have displayed at the very least very poor judgement in how he conducted his personal life," he said.

By ousting its leader, "[Latham] appears to be making a clear statement that his personal behaviour is incompatible with their brand", said Winmill.

Brand consequences

Leaders of other law firms, speaking publicly and privately, said they were stunned by the news but said Latham's vague statements still left many questions. The firm did not describe Voge's actions or the messages he disclosed to the executive committee.

Joshua Galper, co-founder of crisis management-focused law firm David Goldberg & Galper, said it appears Latham made the right choice in parting ways with Voge, if his actions had risked the firm's reputation. But, he said, the firm's vague statement also raises the question: What particular behaviour was found to be inappropriate?

"If you're going to start firing firm leaders for attempting to engage in extramarital affairs, Big Law won't be so big anymore," he said.

While Latham's public statement was vague, the executive committee's actions indicate there is much more to the story, Rubel said, which would mean their response was far from an overreaction. Hesitating to take action could have come with serious negative consequences for the firm, she said.

"They find themselves in a major quandary just one month after they announced that they made history with $3bn in revenue," she said. "I don't think it's a big hit to their reputation. They will come out on top, having handled it what appears to be swiftly and with integrity."

Winmill agreed, though he noted: "What will happen to Voge's individual clients may be an entirely different matter."

"It seems Latham has acted quickly and decisively on this matter, doing their best to put it in the rearview mirror," Winmill said, adding that most clients would want to put it behind them, too.

Different era

Voge's resignation is just the latest case in 2018 in which a prominent lawyer at a big firm has been in the news for sexual misconduct, after the resignation of a Mayer Brown partner who had just arrived from Morrison & Foerster and a Baker McKenzie lawyer left the firm after being accused of assaulting an associate.

"The legal industry is likely to become aware of the issues the #MeToo movement has uncovered and will [try] to confront and manage those issues," Winmill said.  

Galper agreed but noted that Voge's situation is somewhat of an outlier, since the misconduct in question involved a person who was neither an employee of the firm, nor a client, according to Latham's statement. Other law firms that come across inappropriate behaviour will have to consider the facts independently, he said.

"There's been a sea change in a lot of different industries," Galper said. "That current has not run its course yet."

Scheindlin said Voge's case is unique because he has acknowledged his actions were inappropriate. But, she said, Latham's response is an example of change in the legal industry, and other industries. It used to be that lower-level employees were ousted immediately, following allegations of sexual misconduct, but senior lawyers and rainmakers were protected, she said.

"Because of the #MeToo movement, you no longer have the exception for the stars," Scheindlin said. "What's changed now in law firms and other industries is there's no longer a two-tiered way of reacting to those situations."

Rubel said Voge will not be the last person to be publicly ousted by a firm for misconduct, as the industry moves toward greater transparency in addressing misconduct.

"Law firms are starting to understand that reputation management is just as important as trial management," she said. "There's no doubt that we're going to hear about this over and over again."