WolfBlock Partners Vote to Dissolve; Many May Be Headed to Cozen O'Connor
After stunning news this morning that WolfBlock was on the verge of possible dissolution, the firm’s demise is now official.
In a vote today, the partners decided to close the approximately 300-atttorney Philadelphia-based regional firm, reports Above the Law. While the firm, for which corporate real estate work has been a mainstay, will remain in practice for several months to wind down its operations in an orderly manner, it will then dissolve, according to a WolfBlock press release.
Meanwhile, as many as 100 of the firm’s lawyers, including WolfBlock’s chairman, Mark Alderman, may be moving to Cozen O’Connor, reports the Legal Intelligencer. The 500-attorney international firm also is headquartered in Philadelphia, and is particularly known for its representation of insurers in coverage matters.
Citing an unnamed source, the legal publication says a bank’s request late last year for personal guarantees by all partners before it would extend WolfBlock’s line of credit may have been the beginning of the end. After partners said they would leave the firm before signing, the bank extended the line until March 31.
“But by that time, the source said, a large number of attorneys, including all of the New York office, said they would be moving to Cozen O’Connor,” recounts the Intelligencer. “Some put the number close to 100 attorneys while others said it was still fluid and was probably lower.”
The firm’s press release points to the dismal economy, resultant credit restrictions and “the intended and anticipated departure of significant partners and practices” as reasons for the decision today by WolfBlock’s partners to close the firm down.
“The partners concluded that continued efforts to finance the firm’s operations in the face of these obstacles was unwise and could risk greater harm later to firm clients and employees than if the situation were to be managed now in an orderly and responsible manner,” the release states.
WolfBlock’s mid-size stature may have put it at a competitive disadvantage when seeking corporate clients in recent years, compared to diversified BigLaw firms that may have 1,000 attorneys or more, says legal consultant Ward Bower of Altman Weil Inc.
“The firm didn’t grow like some other Philadelphia firms, but was always known as a place with a deep commitment to pro bono and an impeccable sense of ethics,” he tells the Wall Street Journal (sub. req).
It has also been difficult for WolfBlock to attract top talent laterally, an unnamed “top city lawyer” tells the Philadelphia Inquirer, because the firm has had a troubled reputation.
“Little more than a year ago, several of the firm’s top litigators left to join the Center City firm of Hangley Aronchik Segal and Pudlin,” the newspaper writes. “That departure and others over the years tended to underscore Wolf Block’s reputation as a firm wracked by internal discord.”
Additional and related coverage:
ABAJournal.com: “WolfBlock Considering Possible Dissolution; Consultant Hired in Case of Wind Down”
Bulletin: “City’s Oldest Law Firm Dissolves”
Philadelphia Bar Association: “Philadelphia Bar Association Mourns Loss of Wolf Block”
Legal Intelligencer (via New York Lawyer, reg. req.): “Partner Pair Departs Imperiled BigLaw Firm”
Last updated at 11:35 a.m. on March 24 to link to Bulletin article.
