George W. Wickersham
We don’t want to jump too far to conclusions, but things are looking grim right now at Cadwalader Wickersham & Taft, the oldest continuously operated law firm in the US. The past few years have been among the most difficult since the firm’s founding in 1792.
As has been well chronicled, 2008 was a rough year at the firm: PEP was down 30% and revenues 14%; the firm laid off 131 lawyers in two tranches during the year; and there was a management shakeup in February 2008 that resulted in Bob Link being deposed from the chairmanship he had held since 1994. Corporate finance partner Christopher White took over as chairman, and his term has been equally tumultuous.
While Link remained managing partner and a member of the management committee back in February, by November, he had become the focus for the increasing ire over the firm’s misfortunes, and together with former Charlotte managing partner Jim Carroll, was ousted from management responsibility altogether.
More troubles, after the jump.
Henry W. Taft
In recent weeks, the firm has seen departures at an accelerating, and alarming, rate. Late last week, bankruptcy rainmaker Bruce Zirinsky left for Greenberg Traurig, and he took long-time colleague John Bae and newly minted partner Nate Haynes (Eagle Scout, USMCR Sgt. (Ret.), Northeastern BS ’95, Pace JD ’98) with him.
This week, there was a mass exodus in London, with seven partners decamping:
The dramatic events saw office head Michelle Duncan, restructuring litigator Karl Clowry, capital markets partner Conor Downey, real estate finance partner Justin Jowitt, financial services partner Tom O’Riordan and capital markets partners Christian Parker and Charles Roberts all leave to set up shop at Paul Hastings.
White and Link got on the next flight to London to try to stanch the bleeding. Legal Week reports that the firm is already trying to put a positive spin on the debacle. According to a leaked statement:
“Seven partners in the London office resigned from the firm today to join Paul Hastings. The reduction in capabilities in London is unfortunate. However, these departures allow us to rebuild the London office into a profitable operation with a focus consistent with the firm’s long-term objectives. We start this rebuilding process with a very strong foundation in capital markets, financial restructuring and tax led by partners Angus Duncan, Richard Nevins, Nick Shiren and Adam Blakemore. Bob Link will move to London in February to lead the firm’s rebuilding effort.”
John Cadwalader
As the statement notes, Link will be moving to London, a move that was reportedly already in the works, although now accelerated.
One final problem that may have been festering for a while. CWT has been downtown since its founding in 1792 by John Wells. In 2005, the firm moved from its long-time offices at 100 Maiden Lane to “state of the art” facilities at One World Financial Center. At the time, it was a nice feel-good move, showing the firm’s commitment to staying downtown in the aftermath of September 11. But the new lease, and the more than $75 million it cost the firm, may have been one of the first crack’s in the firm’s finances as it incurred the massive debt service and rent, where previously it had owned its office outright.
Don’t get me wrong, I’m hoping for the best for CWT. I’ve always respected the lawyers I’ve dealt with there (although Dennis Block was a complete dick when I interacted with him at Weil Gotshal). The cracks have been growing at Cadwalader for the past few years, but you can’t bet against a firm that has been around for 217 years.
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WOW.
WOW.
This is totally crazy.
This is totally crazy.