Local law firm rosters reel from recession's punch.

Few firms are spared as the employment axe falls

The Southland recession is finally taking its toll on some of the largest and most-prestigious Los Angeles law firms, but among those being hit hardest are firms based in other metropolitan areas that opened up branch offices in Los Angeles during the booming late 1980s, according to this week's List of the 50 largest law firms in the county. (see pages 22, 23).

For example, Chicago-based Baker & McKenzie, which opened its L.A. office in 1988, now has 11 fewer attorneys in that office than it did a year ago. That caused the firm to disappear from this year's List, after having been ranked No. 43 on last year's List.

Likewise, San Francisco-based Heller Ehram White & McAuliffe, ranked No. 40 on last year's List, disappeared from this year's after paring 15 attorneys from its L.A. ranks. That firm also opened its L.A. office in the boom year of 1988.

Firms based elsewherre are not the only ones being hit, however. Several L.A.-based firms are also being pummeled by the recession. The 10 largest law firms in L.A. County, all but one of which are based here, have reduced their combined battalion of local attorneys by nearly 5 percent in the past year alone.

"There has been a demonstrable slowdown in commercial activity, and I'm sure that has affected all L.A. firms," noted Charles Bender, chairman of L.A. County's largest law firm, O'Melveny & Myers. "We are not nearly as busy on local or California matters as we were a few years back. But fortunately, some of the slack has been picked up by our national and international practices."

The L.A.-based law firm that appears to have suffered the most is Thelen Marrin Johnson & Bridges. That firm has downsized its L.A. legal force by more than 35 percent in the past year, causing it to tumble off The List, after having been ranked No. 36 last year. Calls to Thelen Marrin Managing Partner Walter Stringfellow were not returned by press time.

Among the hardest hit of the larger L.A.-based firms has been Buchalter Nemer Fields & Younger, which now has 14 fewer attorneys in its L.A. office than a year ago. That firm was ranked No. 14 last year, but fell to No. 18 this year.

"Firms based in L.A. are clearly being impacted by the recession because so many of our corporate clients have suffered and are looking to reduce their legal costs and are now willing to accept lesser settlements than they otherwise would," said Leonard Venger, Buchalter Nemer's chairman. "When things improve and clients are on solid ground again, then things will pick up at law firms."

But not all L.A. law firms are downsizing or merely holding steady. In fact, some L.A. firms are enjoying explosive growth. Six of L.A.'s top 50 firms posted double-digit growth in their number of local attorneys over the past year.

What's fueling the growth? Almost without exception, recession-related litigation.

One L.A. firm that has been feasting on litigation lately is Kirkland & Packard, which jumped from No. 31 on last year's List to No. 22 this year. Kirkland & Packard is booming by defending Southland architects and contractors.

The local office of Katten Muchin Zavis & Weitzman has also been growing rapidly, adding 11 attorneys to its L.A. office since last year. Managing Partner Howard Weitzman attributed the growth to an increased workload in corporate and real estate workouts and entertainment-related work resulting from its hiring of high-profile entertainment attorney Howard King.