They’re among the largest here with coveted clients. But how are some of the biggest law firms faring these days in decidedly middle market Orange County?
The county has several offices of global and national law firms that serve some of the biggest names in town.
With some of the best legal talent and offices in New York, London and other pricey cities, their rates don’t come cheap.
Local clients include big public or international companies that require complex legal work and the resources of a big firm.
But a tough economy has some wondering how big law firms are drumming up business when the smaller and midsize companies that dominate OC are cutting costs.
The county’s growth among big law firms has been notable, said Dan Hatch, a partner with San Rafael-based legal search firm Major, Lindsey & Africa.
“Orange County’s flavor is certainly that of a middle market but salted with some marquee clients and is a coveted place for top partners to live,” he said.
But we could be at a saturation point, according to Hatch.
The county has dozens of sizable law firms here vying for work.
Among them are homegrown firms Costa Mesa-based Rutan & Tucker LLP, Irvine’s Knobbe Martens Olson & Bear LLP and Stradling Yocca Carlson & Rauth in Newport Beach.
Big firms here include Los Angeles-based Gibson Dunn & Crutcher LLP, O’Melveny & Myers LLP of Los Angeles, Washington, D.C.-based Crowell & Moring LLP, Minneapolis-based Dorsey & Whitney LLP, Miami’s Greenberg Traurig LLP and Phoenix-based Snell & Wilmer LLP.
Some big law firms are disappearing or shrinking in the county.
Firms that have struggled here include San Francisco-based Morrison & Foerster LLP, which counted 50 lawyers in Irvine in its heyday but closed in June after several left.
San Francisco-based Pillsbury Winthrop Shaw & Pittman LLP’s Costa Mesa office once counted 20 lawyers and now is down to two and three others who split their time between here and Los Angeles.
Some could be faring better than others.
“We’re busier than we were last year,” said Jeffrey Reeves, co-partner in charge of Gibson Dunn & Crutcher’s Irvine office. “Locally we’re doing quite well.”
Gibson has about 75 lawyers here and more than 950 firmwide.
It’s the sixth biggest firm operating in the county by lawyers, according to the Business Journal’s last list of law firms in January.
Local clients include Irvine-based Allergan Inc. and Avanir Pharmaceuticals of Aliso Viejo.
Gibson is seeing growth across the board, including in intellectual property work, Reeves said.
A new financial market crisis practice group could generate work from companies that need help dealing with the turmoil on Wall Street, he said.
Staying Afloat
Some big firms are likely to stay afloat here during a downturn because they continue to generate and share work across their offices, said Scott Shean, managing partner of Los Angeles-based Latham & Watkins LLP’s Costa Mesa office.
Latham has some 90 lawyers here and more than 2,100 firmwide. It’s the fifth largest in the county.
“The diversity in practice areas and geography is helpful in smoothing down periods,” Shean said. “Oftentimes our lawyers are working on matters with our other offices.”
Some big firms that work with midsize companies are trying to grow here.
Cleveland-based Jones Day, the No. 19 firm in the county by lawyers, has doubled its headcount in Irvine to some 40 lawyers in the past year, managing partner Richard Grabowski said.
In May, Jones Day hired litigators Richard Ruben, Ralph Blakeney and Darren Cotriel from the Costa Mesa office of Pillsbury Winthrop.
In March, labor and employment partners Robert Naeve and Steven Zadravecz joined from Morrison & Foerster’s former Irvine office.
And in January, securities lawyers Eric Landau and Shawn Harpen left the Irvine office of McDermott Will & Emery LLP for Jones Day.
Pepper Hamilton LLP of Philadelphia opened an office in Irvine in 2005 because of its middle market niche, according to local managing partner Sharon Klein.
“As a firm, we’ve always focused on the middle market,” Klein said. “We’re not apologetic about it.”
Pepper Hamilton has 10 lawyers in OC and 500 firmwide.
It has worked with Irvine-based In-N-Out Burgers Inc. and Costa Mesa’s El Pollo Loco Inc.
For large law firms, generating work isn’t about just going after clients with billions in yearly revenue, Klein said.
“For firms that understand this market, it’s a good one to be in,” she said.
