Thelen Leaders Seek Vote to Dissolve, Hope to Close By Dec. 1

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Thelen Leaders Seek Vote to Dissolve, Hope to Close By Dec. 1

Posted Oct 28, 2008, 02:08 pm CST
By Martha Neil

Updated: Citing crippling economic factors and the impact of partner losses, the partnership council of Thelen recommended in a meeting today that the law firm's partners vote to dissolve.

The firm hopes to shut down by Dec. 1. Partners have seven days to vote on dissolution.

Thelen attributes its troubles to a number of economic factors, "including recessionary pressures and numerous partner departures over the past year, both of which have negatively impacted firm revenues," a news release from Thelen (PDF) notes.

As discussed in earlier ABAJournal.com posts, the firm has been struggling and failed at efforts to merge with several competitors. It has lost more than 200 lawyers since it was created in 2006 by the merger of Thelen Reid & Priest and Brown Raysman Millstein Felder & Steiner.

"Unfortunately, the most promising merger opportunity was derailed by conflicts, and all other full firm merger discussions terminated last week," the release notes.

The loss of so many partners caused the firm to be in default of its primary credit agreement, leaving the firm's bank in control of expenditures.

Thelen will be the second large firm to collapse in less than a month, following the dissolution of Heller Ehrman.

According to the release, the firm is working with its bank to secure a wind-down budget and pay its employees for 60 days under the federal and state WARN Acts. Salaries are likely to be funded through Nov. 30, but accrued vacation pay may not materialize.

Earlier coverage:

ABAJournal.com: "Thelen Partners to Discuss Dissolution; Firm Chairman May Leave"

ABAJournal.com: "Thelen Down 200 Lawyers; How Many to Go?"

Editor's Note: Please contact Rachel Zahorsky or drop in a comment if you have more information about where Thelen lawyers and staff are landing.

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Posted by ABA sold us out - 2 months, 1 week, 4 days, 5 hours, 21 minutes ago

The ABA sold us out by endorsing the outsourcing of legal work to India. A more pathetic trade organization does not exist. ABA, you are terrible
Posted by An American Worker - 2 months, 1 week, 2 days, 4 hours, 25 minutes ago

Well, Thelen Reid and their attorneys have defended many deadbeat Employers, Real Estate Developers, and many corrupted wealthy defendants!! and now Thelen Reid is defeated by the ” Universe” .

They have violated rights of many low income and middle income families in America, so I am happy to see them go out of business…..and Yes, the justice is served!

What goes around, comes around!
Posted by Bad choices doomed the firm. - 2 months, 1 week, 1 day, 17 hours, 56 minutes ago

I was an associate at Brown Raysman before they mergered with Thelen Reid. I was in the first wave of layoffs and when I heard a year later that they were on their third despite heavy attrition, I knew the firm was doomed. In addition to severe cultural clashes between the two firms, which quickly was shown to be not a merger of equals as everything went Thelen’s way and non of the BR practices prevailed even when technically superior, they did not adequately consider that some major clinet bases would leave due to conflicts with the TRP practice areas. I was told that the loss of my client base. which everybody except the partner to whom I reported said was completely obvious, was the reason for my layoff. I am glad I’m not among the scores who will now have to scramble to find work, and hope that business classes take this as a prime example of a badly-considered merger and its inevitable aftermath.
Posted by Al Tidom - 2 months, 1 week, 1 day, 17 hours, 30 minutes ago

They never sent me my CLE certificate. Oy. I guess I can kiss that goodbye? Oy!
Posted by PLBM - 2 months, 1 week, 1 day, 17 hours, 20 minutes ago

Sign of the times…
Posted by george - 2 months, 1 week, 1 day, 16 hours, 35 minutes ago

Another reason not to use a big mega law firm and their $750 an hour lawyers.
Posted by Al Tidom - 2 months, 1 week, 1 day, 14 hours, 55 minutes ago

Comment removed by moderator.
Posted by Andy the Lawyer - 2 months, 1 week, 1 day, 13 hours, 43 minutes ago

Al—have you in all the years of your practice learned nothing about lawyering or women?
Posted by jaydee - 2 months, 1 week, 1 day, 13 hours, 32 minutes ago

Ah, but Al and Andy, Ellen has a BOYFRIEND. Once again, you are too late. BTW, I am a Thelen alum and although no surprise (I expected it 4 years ago when I left), it is still a sad day.
Posted by r - 2 months, 1 week, 1 day, 3 hours, 43 minutes ago

Ah yes! The forces of the universe have prevailed over evil! These rogues will not be missed.
Posted by Opposing Counsel in Ongoing Litigation - 2 months, 5 days, 15 hours, 19 minutes ago

There are some fine construction lawyers who are also decent folks at Thelen. But there are many, including some associates who have neither earned respect nor learned courtesy, who are greedy, self-promoting, gratuitously aggressive and impolite, who seem to believe it is perfectly okay to win at all costs and feel they have the right to be down right rude and nasty. So this is bittersweet from an outsider’s view, though I suspect most Thelenites will land on their feet, no worse for the lesson in humility.
Posted by Former associate - 2 months, 5 days, 14 hours, 34 minutes ago

I agree with Opposing Counsel, and note that many of the polite, courteous persons left in the first year after the merger. Interesting that in the office where I was an associate, they had just hired a team of partner + associates from another firm, despite the fact that the partner, at least, was dealing with some background issues that caused their former firm to be glad of his departure. I’m watching where my friends at the firm are landing, but most have already long gone.

Opposing Counsel, I believe the construction people are forming their own firm, and I’ve wished them well. That’s a good group; it was one of Brown Raysman’s stalwarts, with the technology group, but the latter have pretty much run for the hills before this.

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