LeClairRyan Lawyers Race To Find New Homes as Clock Ticks on Dissolution, Insurance Coverage
As lawyers depart for Clark Hill, Lewis Brisbois and elsewhere, LeClairRyan has said it doesn’t have to provide Cobra benefits for health insurance coverage. “A lot of people are not very happy about it," said one lawyer leaving the firm.
August 15, 2019 at 07:43 AM
4 minute read
The original version of this story was published on The American Lawyer
Clark Hill, Lewis Brisbois Bisgaard & Smith and other law firms have moved to absorb several groups of attorneys at LeClairRyan before the firm shutters.
Lawyers are racing to find new homes before the month ends and their health benefits expire. The firm has told attorneys that it doesn’t have to provide Cobra benefits to extend their health insurance coverage because it uses a “self-insured” benefit plan and the firm itself is shutting down, according to a lawyer transitioning out of the firm.
“A lot of people are not very happy about it,” the lawyer said. “A lot of people have kids, so we’re going to have to find a catastrophe policy in case one of our kids develops cancer on September 1.”
Lawyers at LeClairRyan are also scrambling to submit expenses and move their retirement account funds. The clock is winding down to work on cases from the office and send out collections, as some offices will be turned over to the landlord in September, the lawyer said.
LeClairRyan’s bank has taken control of the firm’s accounts receivable account, two sources said. LeClairRyan, in announcing its impending dissolution Aug. 7, stated it was “working in cooperation with its lender to ensure the continuity of client service” until its practice ceased.
The firm’s general counsel Lori Thompson and former CEO C. Erik Gustafson did not immediately respond to messages seeking comment Wednesday.
Meanwhile, Clark Hill appears to be a successful suitor for a group of lawyers in the Northeast and Houston, according to several sources familiar with the talks. Attorneys in New York, New Haven, Connecticut, and Houston are likely part of the group, sources said.
In Houston, office leader Jason Medley’s email autoresponder indicates that he will be moving to Clark Hill by Aug. 19. Other lawyers in the office couldn’t be reached for comment or declined to comment.
A source familiar with the moves said most of the New Haven office had decided to join Clark Hill. A representative for Clark Hill declined to comment.
A four-lawyer labor and employment team already joined Clark Hill, including Rafael Nendel-Flores, the co-leader of LeClairRyan’s national labor and employment practice, and Guillermo Tello in Los Angeles.
Barclay Damon was in discussions to add LeClairRyan lawyers in New York and Connecticut, but that now appears unlikely. “They are good lawyers and good people and we were impressed with (them),” said the firm’s managing partner, John Langan, adding that whatever firm they land at “is lucky to have them.” Langan declined further comment.
Lewis Brisbois on Wednesday announced that it had hired 11 attorneys, including five partners, across several of its offices, including Newark, New Jersey, San Francisco and Los Angeles. The group arrived this week.
Lewis Brisbois said they will join the firm’s products liability practice, representing manufacturers in automotive warranty litigation. The group includes Newark partner Thomas Regan, who was LeClairRyan’s litigation department deader.
Regan, in a brief interview, declined to discuss the dissolution of LeClairRyan, where he had practiced for more than 11 years. “I have many feelings about it, but I’m not inclined to share,” he said. “I’m looking to concentrate where we landed and moving forward.”
Regan and his team spoke with a few other firms in their search, but “Lewis Brisbois was the best fit” for clients and the team, he said.
The other new hires at Lewis Brisbois include partner Christopher Warren, along with associates Karley Kamaris and Brian Deeney in Newark; partners Peter J. Van Zandt and Paul Efstratis in San Francisco, with associate Taylor F. Sullivan; partner Brian Vanderhoof and associate Erica De La Sierra in Los Angeles; and associates Matthew McCullough and Jonathan Won in Lewis Brisbois’ Sacramento and Orange County, California, offices, respectively.
Smaller groups of LeClairRyan lawyers are in discussions with other firms. For instance, a four-attorney team in Newark is heading to K&L Gates, a source said. Two partners from Hartford, Connecticut, are moving to FordHarrison.
Representatives for K&L Gates and FordHarrison did not immediately return messages seeking comment.
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