Business of Law
Latest Partners to Join Bullivant Exodus Must Wait Longer for Full Capital Repayment
Posted Oct 27, 2011 11:37 AM CDT
By Martha Neil
Over the past years, after merger talks with LeClairRyan collapsed, the attorney roster at Bullivant Houser Bailey plummeted from 236 to 58.
Now, after losing half of its remaining partners in 2011, the Portland, Ore.-based law firm says it will need more time to reimburse them for their capital contribution, although it still intends to do so in full, reports the Am Law Daily.
"Since the beginning of the year, 22 capital shareholders terminated their employment with Bullivant Houser Bailey in order to work for other law firms; over the past four years, a total of 38 capital shareholders have left the firm to practice law elsewhere," says a letter (PDF) sent last week to former partners by the firm. "Notwithstanding the many departures, we are confident that the firm and its remaining 22 capital shareholders will not only survive, but thrive. To do so, though, we must manage the significant debt the firm was left with, including the obligation to repurchase your stock."
According to the letter, which was first published by Willamette Week, former partners will be repaid beginning in January in 40 equal quarterly installments without interest. Until now, repayment has taken place over a four-year period.
Representatives of the firm had little to say on the subject when contacted by the legal publication. However, former partners spoke positively about the firm and their ex-colleagues there and said Bullivant should be commended for continuing with the payments.
ABAJournal.com (March 2011): "Bullivant Closes Calif. Office After Practice Heads Lead 12-Lawyer Leap to Locke Lord Bissell"