"Once-booming Boston law firm struggles to survive; Boston’s Bingham McCutchen may resort to merger" by Deirdre Fernandes | Globe Staff October 22, 2014
One of Boston’s most prominent law firms — its client base (including The Boston Globe and the Boston Red Sox, principally owned by Globe publisher John Henry) — is struggling to stay in business after a storied 123-year run of representing shipping magnates, bankers, and other corporate titans.
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Bingham did well during the recession as its large roster of financial industry clients demanded its services.
But as the crisis passed and banks became familiar with new regulations, they needed fewer services, according to Steven Browne, the recently named managing partner. Other cases the firm handled, including the 2010 Deepwater Horizon oil spill on behalf of its client Anadarko Petroleum Corp. of The Woodlands, Texas, and intellectual property disputes involving another client, Oracle Corp. of Redwood Shores, Calif., ended.
Billings slowed. At the same time, Bingham last year opened a $22.5 million facility in Kentucky, moving several secretarial, accounting, and information technology positions from Boston to the South where rents and salaries are cheaper.
Look like they are receiving ju$tice to me.
Bingham, like many law firms, is trying to manage costs as corporate clients bargain shop, pushing back against standard hourly rates that can reach up to $1,000 an hour, and demanding discounts for routine legal services. But the costs of the Kentucky offices hit Bingham just as revenues were squeezed, said Browne.
This meant lower profits for the firm, and lower pay for partners without guaranteed contracts, adding to the strains in the firm.
Unhappy partners began to leave....
Browne acknowledged that morale at Bingham has suffered in recent months as employees wonder what will happen next. But, he said, Bingham is still part of large deals, including representing Oculus VR, a California virtual reality firm, in its $2 billion sale to Facebook.
“The reason I joined the firm is opportunity,” Browne said. “And there’s tremendous opportunity here.”
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