Economics drove defections to Procopio and partners

By Keith Darcé
Staff Writer

Bigger isn't always better.

Just ask the group of nine health care lawyers who recently left the local office of a big international law firm to join Procopio, Cory, Hargreaves and Savitch, a much smaller San Diego practice.

The defection was largely fueled by economics, said George “Jody” Root Jr., who heads the group of lawyers who switched firms.

Rising rates at Foley and Lardner – the nation's 22nd-largest law firm according to the National Law Journal – were making it difficult for the group to retain clients and recruit new ones, Root said yesterday. Rates at the group's new home are “substantially less,” particularly for senior partners such as himself. He said senior partners at Foley bill more than $600 an hour.

Lower legal fees should be good news for the group's clients, which include hospitals and physician groups that are increasingly sensitive to legal costs as their businesses face tougher market conditions, said Larry Watanabe, a legal practice consultant who advises Procopio.

Procopio employs 110 attorneys at its main office downtown and a second office in Carlsbad. Foley, which is based in Milwaukee, employs more than 900 lawyers who work in 18 U.S. offices, including two in San Diego County, and one European office in Brussels, Belgium.

Joining Root in the move were Celia A. Brewer, Sahyeh S. Fattahi, John C. Lemmo, Gregory V. Moser, Mary K. Norvell, Alyssa A. Osugi, Diane M. Racicot and Wendy L. Tucker.

In some ways the defection seems counterintuitive. San Diego's native law firms in recent years have faced growing competition from a steady invasion of bigger national and international law firms that have opened local offices or acquired practices.

Many of those new competitors brought with them higher rates to help cover the costs of employing thousands of attorneys and staffers who can be spread over dozens of cities and across multiple continents.

“The legal marketplace has become increasingly expensive,” Watanabe said. “The ability for Jody Root to execute his practice at that level became difficult.”

Similar moves have been made by other local attorneys who specialize in price-sensitive legal niches, Watanabe said.

Labor and employment partner Amy Wintersheimer left DLA Piper, the nation's second-largest firm, to join Allen Matkins. Real estate partner Eric Young left Pillsbury Winthrop, ranked No. 32, for Gordon and Rees. And labor and employment partner David Geerdes jumped from the local office of No. 49 Heller Ehrman to join Procopio.

The trend can be particularly lucrative for smaller firms that land defectors with partner-level experience, said Michael Devit, a professor in residence at the University of San Diego School of Law.

“Often times you see more senior people at boutique firms handling clients at a rate similar to those charged” by junior-level lawyers at large firms, he said. “You're getting a higher-caliber, more-experienced lawyer at a good rate.”

Another factor that played into the defection by Root's group was Foley's restrictive work schedule policy, Root said. “Our group has a lot of women in it, and a lot of them chose to be on flex time because of family issues,” he said.

Tom Turner, managing partner for Procopio, said smaller firms such as his are better able to cater to the individual needs of workers. “We run the show ourselves and can be as flexible as the situation calls for,” he said.

Foley spokeswoman Jocelyn Brumbaugh said the firm remains committed to the San Diego market and its health care clients.

“We will continue to invest in and grow these offices as well as our national health care practice,” Brumbaugh said.

She declined to answer questions about the lawyers who left the firm.