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Forward Lateral

By: dmc-admin//July 12, 2010//

Forward Lateral

By: dmc-admin//July 12, 2010//

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As many new law school graduates scramble to find jobs, established partners and even associates looking to change firms are finding the market to be more robust.

Several Wisconsin firms have remained active in their pursuit of lateral hires to beef up practice groups or simply take advantage of talented attorneys on the move.

“It has been a time of tremendous opportunity for us,” said Reinhart Boerner Van Deuren chairman Jerome M. Janzer. “We’re always looking to add talent, but the current economy and marketplace has created more opportunities than we’ve seen in many years.”

The Milwaukee-based firm made 13 lateral hires in the last 18 months, including nine in the last six months. Janzer said the bulk of the new hires have served to enhance the firm’s Health Care, Intellectual Property and Corporate practice areas.

“We’re looking to strengthen existing practice areas and in some cases, add new ones as well,” he said. “What we’re finding is a lot of people looking for new opportunities as well.”

Michael Best & Friedrich LLP has been equally active with six lateral hires so far this year and Director of Administration L. David Lentz expects the firm will eclipse its 2009 total of eight.

But lateral hires don’t always work out, especially if the incoming attorney doesn’t bring the expected book of business.

Lentz said on occasion, attorneys may claim to have a loyal client, only to have the firm find out that the lawyer was not the primary contact for the business or individual. He admitted that mistakes can be made, which is why the firm does its due diligence when researching an incoming’s attorney’s client list.

While the client is free to choose to go with an attorney or stay at the firm, Lentz said there are ways to get a sense of whether incoming lawyers will bring their business with them.

“We’ll look at the relationship a person has with a client,” he said. “Were they the primary contact or one of the team members?”

On the flip side, if an attorney is leaving to take a position at a rival firm, the same analysis often applies.

An attorney that provided the majority of the service for a particular client is likely to retain that business when they depart, Lentz said.

“We are protective, but it’s not a drag-out fight that people might expect,” he said. “It’s usually pretty clear where the client will go.”

Janzer said nothing is ever certain, but in his experience, clients have followed the lawyer and not stayed with the firm.

In the event there is a dispute over client retention, Eberle suggested that often what goes around comes around.

With more experienced attorneys exploring or actively jumping from firm to firm, he said there are no guarantees that where someone starts is where they will end up.

“This relatively new undertaking of attorneys leaving on a more regular basis makes you wonder where this may take us,” said Eberle. “If someone left once, they can certainly leave again.”

Even with those considerations in mind, firms are continuing to look at lateral hires as a way to bring in more business.

Godfrey & Kahn has made two lateral hires from Chicago firms in the last year and often keeps in contact with a handful of native Wisconsin lawyers who practice out of state.

Manager of attorney recruiting Kelly Conrardy said networking with attorneys from other areas can lead to hires down the road.

“We do a lot of opportunity hiring, meaning we are constantly talking to laterals whether we feel we need someone or not,” she said.

Within the last six months, Davis & Kuelthau has added lawyers previously employed at a small local firm and at the local branch of a national firm. Managing partner Ann M. Rieger said she has noticed some movement by local attorneys and also an increase in “cold resumes” coming in.

“I think it’s difficult to tell whether it’s been a voluntary or involuntary move in terms of the resumes coming in,” she said. “But it doesn’t make a difference from our perspective and we’ve assessed people on their individual merits.”

Whyte Hirschboeck Dudek SC has also taken a balanced approach in its hiring of four laterals in the last year.

Chief Executive Paul J. Eberle said the firm has actively recruited attorneys and also listened to those lawyers who have solicited the firm.

“At end of the day the person needs to be a good fit and it doesn’t matter how the conversation started,” he said.

Jack Zemlicka can be reached at [email protected].

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