Brobeck, Phleger & Harrison
Encyclopedia
Brobeck, Phleger & Harrison LLP was a large law firm
based in San Francisco, California
. In 2003, the firm was liquidated
under Chapter 7 of the U.S. Bankruptcy Code, after it had lost a substantial amount of money in the dot-com bubble
and merger
talks with Morgan, Lewis & Bockius had fallen through.
. In the 1990s, as the technology boom began to roar, Brobeck attorneys began accepting equity
from emerging companies in lieu of traditional law firm compensation. The firm re-oriented itself to service many tech companies
that were growing, going public by completing initial public offerings (IPOs) and then engaging in extensive merger and market consolidation (mergers & acquisitions). Revenue jumped from $214 million in 1998 to $314 million in 2000. By the summer of 2000, the firm counted 754 attorneys, up 40 percent from the year before. Brobeck's profits-per-partner soared to more than $1 million a year.
When the dot-com bubble
burst in 2001 onward, the firm's strategy of betting on technology clients to compensate the firm's lawyers imploded as the lawyers' equity shares became worthless, work dried up and partners with traditional clients or portable business
darted to other firms.
The firm's dissolution was formalized effective February 2003 and thereafter became subject to Chapter 7 bankruptcy proceedings through a petition filed by some of its creditors in September 2003.
The Austin, Texas
office opened an outpost for New York firm Dewey Ballantine
, now known as Dewey & LeBoeuf
. The Austin Business Journal reported that the Texas office, housing a group of arrivals from Brobeck, was shutting down in 2009. The former chairman Tower Snow decamped with some 50 attorneys to begin the West Coast offices of Anglo-American giant Clifford Chance Rogers & Wells
, now called Clifford Chance
. The work did not materialize, however, and by 2007 Clifford Chance had closed its Los Angeles
, Palo Alto, San Diego and San Francisco offices.
Law firm
A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other...
based in San Francisco, California
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
. In 2003, the firm was liquidated
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
under Chapter 7 of the U.S. Bankruptcy Code, after it had lost a substantial amount of money in the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and merger
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
talks with Morgan, Lewis & Bockius had fallen through.
History
Brobeck, Phleger & Harrison was formed in 1926 when three lawyers split from the predecessor firm to Morrison & Foerster. The firm cultivated an A list of bluechip San Francisco clients including Wells FargoWells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
. In the 1990s, as the technology boom began to roar, Brobeck attorneys began accepting equity
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
from emerging companies in lieu of traditional law firm compensation. The firm re-oriented itself to service many tech companies
Dot-com company
A dot-com company, or simply a dot-com , is a company that does most of its business on the Internet, usually through a website that uses the popular top-level domain, ".com" .While the term can refer to present-day companies, it is also used specifically to refer to companies with...
that were growing, going public by completing initial public offerings (IPOs) and then engaging in extensive merger and market consolidation (mergers & acquisitions). Revenue jumped from $214 million in 1998 to $314 million in 2000. By the summer of 2000, the firm counted 754 attorneys, up 40 percent from the year before. Brobeck's profits-per-partner soared to more than $1 million a year.
When the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
burst in 2001 onward, the firm's strategy of betting on technology clients to compensate the firm's lawyers imploded as the lawyers' equity shares became worthless, work dried up and partners with traditional clients or portable business
Book of business (law)
Book of business is common parlance in the United States legal services sector and refers to the collection of clients that a lawyer has assembled throughout his or her career. It is often used to refer to the valuation of such client following.Since most U.S...
darted to other firms.
The firm's dissolution was formalized effective February 2003 and thereafter became subject to Chapter 7 bankruptcy proceedings through a petition filed by some of its creditors in September 2003.
The Austin, Texas
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
office opened an outpost for New York firm Dewey Ballantine
Dewey Ballantine
Dewey Ballantine LLP was a white shoe corporate law firm headquartered in New York City. In 2007, Dewey Ballantine merged with LeBoeuf, Lamb, Greene & MacRae to form Dewey & LeBoeuf...
, now known as Dewey & LeBoeuf
Dewey & LeBoeuf
Dewey & LeBoeuf LLP is a prominent global white shoe law firm, headquartered in New York City. Originally founded in 1909, the firm currently has over 2400 lawyers spread throughout 26 offices in 15 countries on 4 continents, and is known primarily for its corporate, insurance, litigation, tax and...
. The Austin Business Journal reported that the Texas office, housing a group of arrivals from Brobeck, was shutting down in 2009. The former chairman Tower Snow decamped with some 50 attorneys to begin the West Coast offices of Anglo-American giant Clifford Chance Rogers & Wells
Rogers & Wells
Rogers & Wells was a New-York based international law firm founded in 1873. After several name changes, it was renamed for William P. Rogers and John A. Wells. The firm was well known for its litigation arm...
, now called Clifford Chance
Clifford Chance
Clifford Chance LLP is a global law firm headquartered in London, United Kingdom and a member of the 'Magic Circle' of leading UK law firms. It is one of the ten largest law firms in the world measured by both number of lawyers and revenue...
. The work did not materialize, however, and by 2007 Clifford Chance had closed its Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, Palo Alto, San Diego and San Francisco offices.
External links
- Bankruptcy notice at the firm's former website
- Brobeckinfo.com site, run by former senior counsel Jayne Loughry has a number of articles about the firm's history and ultimate liquidation
- Article from San Francisco Chronicle about the firm's dissolution