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 CHICAGO, Oct. 1 /PRNewswire/ -- Five senior partners from Kirkland & Ellis announced today the formation of a new law firm dedicated to changing the way law is practiced by increasing efficiency and lowering the costs of legal services.
 The new firm, Bartlit Beck Herman Palenchar & Scott, will begin operation Oct. 23, 1993, with offices in Chicago and Denver. Three of the founding partners, Fred H. Bartlit Jr., Philip S. Beck, and Sidney N. (Skip) Herman, will lead the Chicago office. James L. Palenchar and Donald E. Scott will be based in the firm's Denver office. The founding partners have represented the nation's leading corporations in landmark cases and transactions, and have a combined 100 years of legal experience, 80 of which are in trial work.
 Four of the founding partners (Bartlit, Beck, Herman and Scott) are trial lawyers. This year alone they have been on trial for over 150 days.
 The new firm will be making substantial investments in state-of-the- art technology to enhance the trial skills of its lawyers and to realize efficiencies that can be passed on to clients in the form of lower costs. The firm also plans to implement non-traditional pricing structures designed to encourage and reward efficiency.
 "We are dedicated to changing the economics of corporate legal services both in court and in the conference room," said Fred Bartlit. "Our goal is to be compensated for the quality of our performance rather than the amount of time spent on a project. This is what clients want and is the surest way to eliminate inefficiency and unnecessary costs of legal services."
 With Kirkland & Ellis for 33 years, 25 years as a senior partner, Bartlit is acknowledged to be one of the country's top trial lawyers, and has tried over 40 cases since 1970. He was identified by author Emily Couric as one of the top ten trial lawyers in the United States in the book, "The Trial Lawyers," published by St. Martin's Press. Also, Bartlit is a subject of a forthcoming book, "The Great American Trial Lawyers, Who They Are, Whey They Are So Good."
 According to Bartlit, lack of pricing competition among law firms and open-ended hourly charges for legal services create disincentives for firms to deploy personnel efficiently and to utilize productivity- enhancing technology.
 "Over one half of the time a typical law firm spends in preparation for a trial -- researching, briefing and arguing a host of legal points -- is not the best use of client money. It may be excellent work but it is irrelevant to the ultimate outcome of a case," Bartlit added.
 "We are creating a law firm for the future," said Skip Herman. "Or goal is to minimize the inefficiencies involved in pre-trial discovery and to maximize the time our experienced trial lawyers spend determining strategy and preparing for a client's day in court." Herman, who will serve as the firm's managing partner, was with Kirkland & Ellis for 15 years. In addition to representing clients such as United Technologies, Dun & Bradstreet, NL Industries, and Katy Industries, Herman served as Kirkland's hiring partner for five years.
 Other founding partners:
 -- Philip S. Beck, who was with Kirkland & Ellis since 1977, has broad trial and appellate experience in the area of business litigation. His cases have included fraud and RICO claims, patent infringement, contract actions, insurance coverage, ERISA and pension rights, dealer relations, antitrust and mergers, corporate takeovers, First Amendment rights, and various regulatory actions.
 -- James L. Palenchar, a corporate/securities specialist, has been with Kirkland & Ellis since 1975 in Chicago, Washington, D.C., and Denver. He has represented companies such as NL Industries; Baroid Corp.; Kraft, Inc.; Whirlpool Corp.; Valhi, Inc.; and Trement Corp. in mergers and acquisitions and corporate financing transactions. Palenchar will serve as managing partner of the Denver office.
 -- Donald E. Scott, who has practiced with Kirkland & Ellis since 1973, specializes in business litigation. He has successfully tried jury cases for Pratt & Whitney, Phillips Petroleum, Peter Kiewit Sons, Inc., and General Motors. He was also has extensive antitrust counseling and litigation experience.
 Bartlit Beck Herman Palenchar & Scott's goal is to create a firm that relies less on the number of hours billed by relatively inexperienced lawyers and more on the quality of work done by its senior lawyers.
 Bartlit explained: "We want to move away from the traditional `pyramid' model of law firms, which is built on leveraging associates' hours. Instead, we want to leverage our partners' experience and skills. We can do this because we have developed the technical expertise necessary to deliver our services in a highly efficient manner."
 An example of this approach is the intelligent use of computers. "We will be able to prepare and try a case with three lawyers when the other side may have ten or more," Bartlit added. "The result is better quality work for the client, better training for associates and a more rewarding experience for the senior lawyer."
 Another component of the new firm's program to increase efficiency will be establishing pricing structures other than time-based rates. Billing in litigation and transactions will be determined on a case- by- case basis through negotiations that reward a successful outcome and efficient delivery of services. Time-based billing will be available where warranted but replaced in many instances with a variety of performance-based incentives and bonuses. These include a negotiated flat fee that could represent a substantial reduction from current legal costs, initial reduced hourly charges with a performance bonus and negotiated contingency fees. Counseling and transactional work will be priced with a view toward the building of relationships as opposed to "one-time" representations.
 Bartlit Beck Herman Palenchar & Scott will be located in Chicago at Courthouse Place, 54 West Hubbard Street, a landmark building where Clarence Darrow tried the famed Leopold-Loeb case in 1924. In Denver, the firm will be located in the historic Kittredge Building, 511 Sixteenth Street.
 CHICAGO, Oct. 1 -- Kirkland & Ellis announced that Fred H. Bartlit Jr., and seen other partners have submitted their resignations from the firm effective Oct. 22, 1993. The departing lawyers have announced their intention to form a new law firm, to be called Bartlit Beck Herman Palenchar & Scott, with offices in Chicago and Denver. Joining Bartlit as partners in the new firm will be Philip S. Beck, Karen L. Chapman, Mark E. Ferguson, Sidney N. (Skip) Herman, James L. Palenchar, Donald E. Scott, and Thomas R. Stephens.
 Kirkland & Ellis' management committee said: "We and the other partners of Kirkland & Ellis have the highest regard for the talents of Mr. Bartlit and those joining him. We sincerely regret their decision to leave, and wish them well in their new law firm."
 Bartlit stated: "My 33 years at Kirkland & Ellis have been professionally and personally rewarding, and I leave with great respect and affection for all my friends at Kirkland. My colleagues and I decided to form a new firm primarily because we prefer the flexibility a small firm with its own identity will afford us when meeting the challenges facing the legal profession."
 Kirkland & Ellis will work closely with the department partners to assist them in making a smooth and orderly transition to their new practice. No client will be adversely affected by this development and it is anticipated that a number of existing matters will be jointly staffed by the two firms after Oct. 22.
 Following these departures, Kirkland & Ellis, a national law firm, will have approximately 400 attorneys practicing law from its five offices in Chicago, Denver, Los Angeles, New York, and Washington, D.C.
 -0- 10/1/93
 /CONTACT: Herbert H. Rozoff or Joan S. Krga of Ruder Finn, 312-644-8600, for Bartlit Beck Herman Palenchar & Scott/

CO: Bartlit Beck Herman Palenchar & Scott ST: Illinois IN: SU:

WB -- NY069 -- 7875 10/01/93 14:52 EDT
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Date:Oct 1, 1993

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