The long-standing Philadelphia law firm, Schnader Harrison Segal & Lewis, is set to cease operations after almost 90 years. The firm’s litigation partner and generan counsel, Keith Whitson, has confirmed that a dissolution plan is being organized in collaboration with the firm’s stakeholders and bank. The exact timeline for voting and finalizing this plan remains uncertain, with Whitson adding that the current plan may shift before being finalized.
The firm’s leadership has outlined three primary objectives to guide their dissolution plan. Firstly, they aim to ensure ongoing client services without interruption. Secondly, they’re focused on minimizing the impact on business partners and lastly, they are keen on facilitating career transitions for attorneys and staff from the firm. On the topic of transitioning lawyers and staff, Whitson revealed that discussions are underway with other law firms, but declined to delve into specifics.
To inform this dissolution strategy, the firm has engaged the expertise of Leslie Corwin, a partner at Duane Morris, who has previously offered counsel during law firm dissolutions, most notably for Wolf Block. Corwin made assurances that the dissolution won’t require bankruptcy proceedings and maintained that following dissolution, it could take years for the firm to fully cease existence.
Corwin further explained that a firm in dissolution still operates as a limited liability partnership (LLP) but has an obligation to wrap up the firm’s affairs as per a dissolution plan. This includes preserving assets, clearing as many liabilities as possible and finding placements for lawyers and staff at other firms.
The exact circumstances that led to the firm’s dissolution were not specified by firm leaders. However, according to data from ALM, there has been a notable decline in attorneys within the firm – Falling from 165 in 2014 to 109 in 2022 and most recently, listed 88 attorneys as of today. In recent years, the firm has experienced significant lateral exits, which has seen key client business and a number of corporate partners depart from the firm.
Two Schnader Harrison litigation partners, Samantha Banks and Edward J. Sholinsky, have finalized moves to Fox Rothschild, while Dilworth Paxson chairman, Lawrence McMichael, has reported that two partners have accepted offers to join their firm, with the expectation of more Schnader partners following suit. Amidst these shifts, industry observers have expressed disappointment and shock at the firm’s closing. Philadelphia-based legal recruiter, Liz Shapiro, has been quoted as saying, “It’s sad. They’ve been around forever.”
For more on this unfolding story, read the full article at Law.com.