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A Bumpy Start for New Firm of Laid-Off Lawyers

Posted Aug 26, 2009 9:55 AM CST
By Debra Cassens Weiss

A boutique law firm formed by laid-off lawyers didn’t last for long.

Lawyers Scott Jaffe, Paul Roberts and Ross Schiller planned the new law firm this winter, but by July the boutique was dead, the American Lawyer reports.

All of the lawyers had a background in structured finance. Jaffe was of counsel at DLA Piper, Roberts was special counsel at Alston & Bird, and Schiller was a credit analyst on collateralized debt obligations for Standard & Poor's. Their new Manhattan law firm, they decided, would be a boutique focusing on finance, commercial law and bankruptcies.

The lawyers bought computers, created marketing materials touting their low rates, and rented 450-square-feet of office space at the low rent of $1,500 a month.

But work was slow, and the lawyers handled a lot of pro bono work, the story says. Jaffe went on a monthlong trip to Italy that had been planned before his layoff, and Roberts also took a planned vacation.

Schiller left the firm before Jaffe’s trip, and is looking for a new job. “I thought there would be more transactions to be done, especially with the government money," he told the American Lawyer. "It's not really the case right now."

Now Jaffe and Roberts are planning to join another new law firm, Bryant & Partners, formed by DLA Piper lawyer B. Seth Bryant. Jaffe will be a name partner at the 14-lawyer firm.

Comments

1.

B. McLeod
Aug 26, 2009 10:31 AM CST

Probably a good idea to skip the month-long vacations, or put off trying to launch a new office until after.

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2.

practicehacker
Aug 26, 2009 4:38 PM CST

When I was graduating I spoke with a trader at the Chicago Mercantile Exchange who was a lawyer. He asked what I was going to do after graduating: I said I planned to start a firm and he laughed, saying that it costs $120K to start an office so I’d better forget it. I guess if you expect month-long vacations in your start up then it really can be that expensive. Seriously. Once a big law fatcat, always a big law fatcat.

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3.

Mike
Aug 26, 2009 6:00 PM CST

It might cost $120 to start an office somewhere, but I started my office for about $2000.  The key is to find a lawyer who needs help but doesn’t want to hire someone full time (ie: a solo).  Offer to do some work for him in exchange for free or reduced rent.  I am doing this right now and not only do I get paid to go to hearings for him.  He gave me an office in the building he owns, use of the conference room and use of the office equipment at cost.  I get to learn a new practice area (bankruptcy) and start my own firm for almost no out of pocket costs.  Insurance is reasonably priced through the local bar association and clients are really starting to come in the door.  The hardest part is not getting overly excited and making sure that you get paid before doing the work.

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4.

Lee
Aug 27, 2009 10:22 AM CST

Re: #3.  Mike—good job in finding a way to create work!  I started a similar type of practice about 10 years ago with an established lawyer and got paid by sharing fees.  We each “ate what we killed.”  Not always “lucrative” or “prestigious,” but I have always been able to pay my bills, and I’ve never missed a meal.  And I’ve long ago stopped caring about what BigLaw and Order of the Coif types think of me.  I am blessed.

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