Law.com's weekly US Briefing brings you the pick of this week’s news, analysis and comment from the States
Former clients sue Howrey after alleged patent deal sours
Texas Lawyer
Two former clients have sued Howrey partner Michael Dowler and the firm, alleging breach of fiduciary duty after an alleged deal to buy a patent for $1m went sour. The plaintiffs allege that Dowler was their lawyer in a variety of patent matters and that he brought a patent to them for potential purchase, demanded an "under the radar" verbal deal for 50% of net profits to be derived from the patent and breached his fiduciary duty by "misrepresent[ing] the value of the patent".
Bad market, partner exits trigger temporary cash flow problems at Mayer Brown
The National Law Journal
Mayer Brown has slowed repayment of departing partners' capital investments as the firm faces unpaid client bills and an outflow of money tied to exiting US partners. Last summer, firm leaders changed policy to take up to six months to return departing partners' capital investments instead of handing it back immediately. During transitional periods when law firms are cutting partners, the costs of exit compensation and lingering overhead items sometimes drive up expense, says consultant Peter Zeughauser.
Quinn Emanuel jumps at London opportunity
The Recorder
Richard East, a Kirkland & Ellis partner in London, had two solid offers from other firms when a client urged him to meet with William Urquhart of Quinn Emanuel Urquhart Oliver & Hedges, a firm he "had vaguely heard of." Now he's opening a UK outpost for the Los Angeles litigation shop. Quinn Emanuel's plan is to replicate its US model with local London lawyers, marketing its willingness to go up against large investment banks and accounting firms, a space many other major UK firms can't - or won't - fill.
The new firm mantra: cut, redeploy
The National Law Journal
Dechert chairman Barton Winokur remembers the 1970s. "That was the longest decade in history. It lasted for 14 years," he said. Or so it seemed. It was a time of rampant inflation, rocketing gas and food prices and a bloated trade deficit. Thirty-five years later, the economic picture is much the same and is requiring law firms like Winokur's to reposition themselves for the downturn, however long it may last. The recent evaporation of structured finance deals and capital markets work in general has left Dechert and several big law firms with the dismal task of laying off lawyers. In Dechert's case, once news of 13 associate layoffs hit earlier this year, the law firm quickly offered to redeploy the attorneys affected.
Defections to Greenberg may close Blank Rome's Florida office
The National Law Journal
At least half of Blank Rome's Boca Raton, Florida, office is leaving for Greenberg Traurig and sources say the rest are in negotiations to go. That could leave Philadelphia-based Blank Rome without a Florida office for the first time in 30 years. Partner Bruce Rosetto and three associates have signed on with Greenberg, the Florida-based mega-firm, according to Michael Leeds, managing partner of the Boca Raton office of Blank Rome.
The American Lawyer
When Peter Ehrenberg testified in a Delaware courtroom in December, it marked a first in the Lowenstein Sandler M&A partner's 34-year career. Never before had he taken the witness stand to defend one of his contracts. Then again, nothing like what happened between his client, Cerberus Capital Management, and United Rentals had ever befallen one of his deals. Lawyers familiar with the $4bn deal say they believe the United Rentals case offers a glimpse into a little-noticed but common practice.
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