Law Office Management
Aug. 2, 2009
2009 California 50
Changes in the numbers of attorneys and partners in our annual survey of the state’s largest law firms show how they are weathering the recession.
Our 2009 list of California's largest law firms bears the marks of the economic downturn. Apart from the shocking falls of Heller Ehrman and Thelen, the legal sector as a whole has been significantly bruised by the recession in the past year. More than 60 percent of the California 50 firms have fewer lawyers than in last year's survey. Overall, the total number of California attorneys in firms on the list dropped by 4.5 percent. "Firms that are in major cities and more involved in capital markets took the biggest hits," as demand in real estate, transactions, and structured finance plunged, confirms Blane Prescott, vice president of Hildebrandt management consultants. In the rankings, Latham & Watkins maintained its No. 1 position, despite trimming its payroll from 751 attorneys last year to 692 today. Morrison & Foerster stayed in second place with 559 attorneys. O'Melveny & Myers slipped a notch to fourth after parting with 68 lawyers. Lewis, Brisbois, Bisgaard & Smith gained the No. 3 spot. Last year's No. 4, Wilson Sonsini Goodrich & Rosati, fell three rungs. Jones Day jumped ahead six places to the twelfth slot after adding 64 attorneys, while Buchalter Nemer vaulted ten spots, from No. 50 last year to its current perch at No. 40. New additions to the list are Farella Braun + Martel (No. 43) with 133 attorneys, Downey Brand (No. 47) with 122, and Nossaman, in 50th place with 117. The survey also provides a look at minority and women partners among the California 50, as well as sidebars on diversity (see page 34). The firms surveyed reported expanding practice areas in bankruptcy, employment, and litigation. "It's not rocket science why these areas have the most pickup during an economic decline," says recruiter Matt Feuer of McClure & Feuer in San Francisco, "and it's the same all over the state, except midsize firms fared better due to their lower costs." On the other hand, almost half of the California 50 have added new practice areas to their portfolios?including clean tech, renewable energy, life sciences, and immigration?to position themselves for an economic turnaround. Hildebrandt's Prescott foresees "a gradual but long recovery, with the upturns beginning in high tech work" in the coming months. "I'm more optimistic than six months ago." -Rene Ciria Cruz 2009 CALIFORNIA 50 LIST
Usman Baporia
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