Date: December 11th, 2006 5:09 PM
Author: Purple library laser beams
NY Firm Loses Big Client, Will Close Office
New York Lawyer
November 28, 2006
Reprints & Permissions
By Gina Passarella
The Legal Intelligencer
A 13-year retainer relationship between Pittsburgh-based Alcoa Inc. and LeBoeuf Lamb Greene & MacRae's office in the Steel City has come to an end.
New York-based LeBoeuf Lamb opened its office in Pittsburgh in 1993 when the manufacturing company hired the firm on a retainer basis to handle its national litigation work. The pair has decided that the relationship no longer makes economic sense for either side.
The firm will now close the office by a projected date of Jan. 31, according to firm executive director Stephen DiCarmine.
Alcoa spokesman Kevin G. Lowery said the two sides have had discussions over the last few years about different ways to handle the company's litigation needs.
"LeBoeuf has made the decision that they weren't open to make these changes," Lowery said, adding that the dissolution of the relationship was mutual.
"The new retainer just didn't make economic sense for the firm," DiCarmine said.
The firm did not really acquire any other Pittsburgh business during its time there, DiCarmine said, and it is not concerned that closing the office would negatively affect the firm's financial situation.
The decision to make changes to Alcoa's litigation representation was, in part, done to coincide with the company's plans for global growth, Lowery said.
"We needed someone who can grow with us," he said.
Alcoa's litigation needs will now be handled by Richmond, Va.-based Hunton & Williams on a similar fixed-fee retainer basis.
Alcoa did some work with the firm before and chose it to replace LeBoeuf Lamb after a review process of potential candidates.
The shift in representation was not part of a reduction in the number of firms Alcoa used, Lowery said, adding that the company felt it did that back in 1993 when it moved all of its litigation work to LeBoeuf Lamb.
The firm will not be completely cut off from Alcoa's legal needs. Lowery said the firm would still handle some matters, including the company's issues before the Federal Energy Regulatory Commission.
Neither Lowery nor DiCarmine would put a price tag on the litigation work handled by LeBoeuf Lamb.
A source familiar with the relationship said the office has done "very, very well" since its opening and has recently been hiring attorneys.
According to the source, Alcoa has been in a "cost-cutting mode" and has gone through some recent layoffs. A rumor on the street, the source said, was that Hunton & Williams underbid LeBoeuf Lamb by nearly 35 percent. Hunton & Williams could not be reached for comment on this issue by the time of publication.
The fate of the 30 attorneys who practice in LeBoeuf Lamb's Pittsburgh office is unclear. DiCarmine said the firm would send a team to Pittsburgh to help those attorneys who want to stay in the city find work in other firms or corporations. He said severance packages are being offered. The source said those packages are expected to last through March.
Margaret A. Keane, co-managing partner in Pittsburgh, moved to the city from LeBoeuf Lamb's New York office to open the office in 1993. DiCarmine said she is still looking at her options.
The firm ranked 51st in the 2006 AmLaw 100 rankings with a reported 612 attorneys. According to the firm's Web site, it now employs over 700 attorneys. It has offices in nine U.S. cities, including Boston, Chicago, Washington, D.C., and Los Angeles. The firm has eight offices internationally, including a presence in Russia, Africa, Asia, Europe and the Middle East.
Hunton & Williams came in 43rd on the AmLaw 100 with nearly 800 attorneys. According to its Web site, the firm now has around 850 attorneys with several offices in Asia and Europe as well as 13 offices in the United States. Hunton & Williams does not have a Pittsburgh office.
David C. Landin, who practices out of the firm's Richmond office, said the firm has not yet decided whether it will open an office in Pittsburgh to handle the new business.
Landin, a litigation partner at Hunton & Williams, said he has increasingly done work for the aluminum company over the last 10 years. The firm has also handled some regulatory work for Alcoa out of its Washington, D.C., office, he said.
(http://www.autoadmit.com/thread.php?thread_id=543912&forum_id=2#7195861)