Paul Weiss Houston Launch Stalled as Top Rival Partners Stay Put

Paul Weiss has been stymied in its effort to open a Houston office, as top equity partners at rival firms spurned recruitment efforts.

Partners at firms including Kirkland & Ellis, Latham & Watkins, Sidley Austin and Baker Botts ended talks about joining the office, five people familiar with the matter said. Some turned down guarantees of $10 million to $15 million for multiple years.

In its push to open in Houston, Paul Weiss held discussions with Justin Stolte at Latham and Sean Wheeler at Kirkland, according to two of the people. The partners were comfortable at their current firms, which have established presences in the Houston market, said three of the people, who requested anonymity to discuss the private talks.

Paul Weiss also approached Jason Bennett, a longtime partner at Baker Botts who is department chair for the firm’s global projects practice and co-head of its firm-wide energy sector, according to two of the people.

While Paul Weiss’ initial efforts have sputtered, the firm isn’t likely giving up on trying to open an office in Houston, the five people said.

A&O Shearman Merger Shock Waves Ripple Through UK’s Magic Circle

The Magic Circle, once shorthand for a select group of elite UK-founded law firms, has lost some of its sparkle in recent years as its five firms have been battered by competition from larger, more profitable US firms.

The term is bound to lose even more of its meaning as Allen & Overy’s merger with Wall Street firm Shearman & Sterling becomes final, creating a behemoth with roughly 3,900 lawyers and a combined gross revenue of $3.5 billion. The merger, which closed May 1, highlights the differing strategies the five firms have pursued to maintain their elite status and move on from the UK-centric moniker.

“The problem for UK firms is that there is only so much truly premium local legal work around,” said Scott Gibson , a director at London legal recruiting firm Edwards Gibson. “As long as US private equity continues to drive the market, the rest of the UK global elite will keep trying to break the US. They have no choice if they want to stay elite.”

How the other four firms—Clifford Chance, Freshfields, Linklaters, and Slaughter & May will pursue the US, the world’s largest legal market, is a question that can’t be ignored.

Quinn Emanuel Battles Former Allies in Jane Street Options Case

Quinn Emanuel, a law firm with a reputation for driving hard-nosed litigation, is squaring off against former partners on behalf of Jane Street Group, which claims a theft of its trading strategy.

Alex Spiro, Elon Musk’s go-to lawyer, leads Jane Street’s outside legal team from Quinn Emanuel Urquhart & Sullivan, along with firm partner Deborah Brown .

David Elsberg and Rollo Baker , two former Quinn Emanuel partners who launched boutique firm Elsberg Baker & Maruri this year, represent two former Jane Street employees accused of pilfering the lucrative trading strategy.

The Jane Street lawsuit against its ex-employees offers a view into a high-speed trading market that has soared over the past decade. Jane Street claims it brought in about $1 billion last year from the India options strategy, and the firm’s former traders deny stealing it.

For Quinn Emanuel, the high-profile fight offers an opportunity to show off its roster of talent, past and present. Spiro has built a reputation as a celebrity litigator, with his successful defenses of Jay-Z and Musk. He is aiding Adam Neumann’s bid to buy back WeWork. Elsberg, who will go toe to toe with Spiro in the Jane Street suit, was among a group of 10 lawyers who announced in 2018 that they fled Quinn Emanuel to start boutique firm Selendy Gay.

Thanks for reading this week’s edition of?Inside Big Law. Want the biggest stories daily? Subscribe to our Business & Practice newsletter.