Paul Weiss posts increased profits for 2009 despite revenue drop

Paul Weiss, Quinn and Goodwin Procter hold steady in 2009

New York litigation leader Paul Weiss Rifkind Wharton & Garrison increased its profitability in 2009 despite a slight fall in revenues, writes The Am Law Daily.

Although the firm's gross revenue slipped by 3.8%, from $692m (£432m) in 2008 to $665.5m (£416m), profits per equity partner (PEP) hit $2.69m (£1.68m), up from $2.65m (£1.65m). Notably, the firm achieved its results without resorting to layoffs. Lawyer headcount increased slightly, from 647 to 653.

Firm chair Brad Karp described 2009 as "the most profitable year in our firm's history," noting that the restructuring and litigation practices were particularly busy. "The last quarter of 2009 was the busiest period in our firm's history," Karp said. He credited the firm's conservative growth policies - what he called "our strategy of incremental growth" - for the healthy results.

Paul Weiss has also been boosted by its ongoing role advising several of the largest financial institutions now under siege, including Citigroup, Bank of America and JPMorgan/Bear Stearns.

Last week also saw highly profitable litigation specialist Quinn Emanuel Urquhart Oliver & Hedges and top 50 US practice Goodwin Procter confirm their 2008 results.

PEP at Quinn Emanuel dropped 6% from 2008, when it was the third most profitable law firm in the US, but the Los Angeles-based firm's 77 equity partners still averaged $3.1m (£1.9m). Revenue at the firm declined 5%, from $442m (£276m) to $420m (£262m).

At Boston-based Goodwin Procter, revenue fell 4% to $658m (£411m) and PEP fell nearly 3% to $1.3m (£794,000). The firm, which is a regular referral partner of SJ Berwin, entered the UK market in 2008 with the launch of a City branch.

The Am Law Daily is the website of The American Lawyer, Legal Week's US sister title.