Heller Ehrman Winding Things Down Quickly

[WSJ Law Blog]

We suppose there’s no real way to sugarcoat this, but we found the first line of an email sent by Heller Ehrman and posted by the CalLaw blog to its employees downright chilling.

It is with a great deal of regret that we write to inform you that we will not be able to pay you for work performed after today, Friday October 10 and, as a result, that your employment with the firm will be terminated today.

As all loyal LB readers probably know, Heller Ehrman, the erstwhile Bay Area juggernaut, last month decided to close its doors, a victim of an overly ambitious expansion plan and an unexpected loss of litigation work.

Initially, the firm had said it would wind up its business by Nov. 28. But it seems to be expediting the process. The email also reads:

These actions have been forced upon us by the two banks — Citibank and Bank of America — that control our ability to make any payments. Generally, they have refused to pay employees who we cannot convince them are necessary (as they define it) for the wind down efforts.

According to a source close to the firm, the email was directed largely toward administrative staff and other non-lawyer personnel, but that some lawyers were affected. Many Heller lawyers have found work at other firms, some of which have gone into hiring mode, despite the down market.