Paul Weiss: Has Litigation Partner Flight Accelerated Shift to Being Corporate Transactional Law Firm?

 The recent partner flight of litigators from Paul Weiss delighted critics of its dealmaking with the Trump administration. And, sure, it probably did a bit of damage to the brand. 

But as for the business - and the deal was made to protect the business - it's likely still as strong as it can be in this era of intensified global competition and the threats coming from economic uncertainty. 

What happens in the court of public relations can be separate from what's going on in revenues and profits. Whether it's a spill or fossil fuels, Big Oil can take it on the chin in public relations. But simultaneously it could be making record profits and having more folks apply for its credit cards. 

Here's the reality for Paul Weiss. Roy Strom explains in Bloomberg Law that increasingly litigation is not the business of that law firm. Corporate transactions are. He notes that there has been: 

" ... a long-term trend at Paul Weiss, with the firm shifting its focus to lucrative work for private equity giants such as Apollo Global Management, Blackstone, and Bain Capital. That’s brought greater headcount, revenue, and profitability, but also challenged the firm’s identity." 

The departure of the brandname litigators could accelerate that shift. Like Kirkland & Ellis, a model studied by Paul Weiss chair Brad Karp, it could reposition litigation as more or less a convenience for the big accounts. Sure, we'll also handle your lawsuits too, along with your mergers and acquisitions. Since becoming chair in 2008, Karp has been full of disruptive surprises.

No organization wants to be the center of controversy. However, being sucked into that vortex since the negotiations with the White House probably hasn't had a major impact on the transactional practices. Maybe none at all.

Litigation is sexy. I went to Harvard Law School because I had followed how its professor Alan Dershowitz had managed criminal trials. With some exceptions, much of transactional, with all the details, is not sexy However, in terms of Profits Per Equity Partner that's where New York Big Law firms may need to be.

In my coaching I am noticing more pragmatism. That is, a focus on earning potential, not professional mystique.

Rattled by the uncertainty? Faith-based Career Coaching. Special expertise with transitions, reskilling and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry.