Southern CaliforniaLaw FirmsMerge and Expand During an Impactful 2024
In this eventful year,the 100largest lawfirms in LosAngeles County faced financial challenges, regulatoryissues, and industry consolidationwhile demonstratingresilience through theadoption of new technologies
Inparticular,real estate law hasbeen adifficult sector due to higher interest rates that have impacted valuations as well as new developments. However, there is an expectation that interest rates will decline within the next 12 months and activity will increase, especially for distressed properties thatmay become availablethrough foreclosureoran off-market transaction with the existing owner
“Deal flow hasimproved nowthatthereissome visibility on interestrates. However,there is still alot of uncertainty around the commercialreal estate market,sothe recovery has been uneven and bumpy,”saidMathew Wyman, partner and chairperson for Cox, Castle &Nicholson.
That sentiment may extend to other transactional work for firms that specialize in mergers and acquisitions, restructuring, capitalraisedue diligence,tax andsecurities litigation. As firms gear up for more activity, they haveincreased legal hiring,and somefirmshavemerged in an
effort to provide more robust service offerings with alarger and more geographically diversestaff
AYear of Growth
Several new firms entered the LosAngeles market over thepast year throughmergers. Several East Coast firms sought out West Coast offices to engage withthe media, entertainment, technology, private equity and family offices that arelocated in thisregion.
Philadelphia-based Saul Ewing LLP entered the Southern California market through amerger with localfirm Freeman Freeman& SmileyinAugust 2023.Atthe time,the merger added 50 attorneys across offices in LosAngeles and Orange County. This also broughtthe firm’s total offices to 18 nationwide with more than 400attorneys.
Saul Ewingalready hadseveral clients headquartered or with substantial operations in California
In the three years prior to the merger,the firm handled more than 500 clientmatters in the state,despitealackofalocal office presence
Some of thesignificantindustries include higher education, cannabis, insurance,sportsand entertainment, food and agribusiness. It also has anationally recognized real estate practice
“The collaborativeculture,bench strength, industry focus and full range of legalservices is what attractedustoSaulEwing,”saidSteven Ziven, former managing partner of Freeman, who now serves as managingpartner of the LosAngeles office,inastatement
More recently,the office expanded withthe addition of veteran litigator Stephen Ma, who
hasrepresented public andprivate companies andtheir officers, directors, members and investors. He hasexperience in both entertainment defending music publishers in licensing and copyright disputes and real estate representing developers andlenders in litigation against breach of contract and fraudulent transfer claims.
Another nationalfirm that entered the LosAngeles market during the pastyearwas Thomson Hine LLP,which opened an office on July 1, 2024,with 11 attorneysand atotal of 25 employees. Litigators from Conkle,Kremer &Engeljoined the firm and formed its first West Coastoffice. Thegroup has experience representing clients in industries, including beauty and personal care products, fashion, technology, real estate and manufacturing.
There are additional mergers that have been announced andare expected to close within the next few months. Theyinclude Lewis Roca and Womble Bond Dickinson, which announced plans to merge as of Jan. 1, 2025. Both firms operate in LosAngeles, andWomble Bond Dickinson operates an office in Irvine.The merger will create afirm with more than 1,300 attorneys in 37 offices in the United States andthe United Kingdom.
In September,LockeLord and Troutman Pepper agreed to merge,effectiveJan. 1, 2025. The new firm will be named Troutman Pepper Locke andwill have more than 1,600 attorneys in 33 offices in theUnited States andtwo in Europe Both firms operate offices in LosAngeles.
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Los Angeles Legal Sector Leasing Poised forGrowth
Astudy by Cushman &Wakefield shows that LosAngeles is the topmarketfor legal sector office leasingthrough thefirst halfof2024
Los Angeles legal leasing activity was up by 60% through the first half of theyear compared withthe first half of 2023. The legalsectoraccounted for11.2%of all office leasing in the LosAngeles market, according to Cushman & Wakefield data. The bulkofthat growth camefrom four individual leasesthat weresigned in the second quarter and ranged in sizefrom 41,000 square feetto107,000 square feet. Of those four transactions,three were expansions by 74% or more.
“Century Cityismoreexpensive in all respects. It has higherrent and lowerconcessions,”saidLuke Raimondo,vice chairman at Cushman &Wakefield who works with legal sector clientsinLos Angeles. He noted that relocations arecapitalintensive because it’sexpensiveto move,build out and furnishspace As aresult, many of the largest leasesare signed forlonger terms
Nevertheless, thereare other driving factorsbeyondcostthatcause firms to relocate from Downtown, including safety concerns and shortercommutesfor partners and staffifmost
employees live on the Westside CenturyCity mayalsobecloser in proximity to entertainment and private equity firms,the bulk of which have offices in neighborhoods such as Beverly Hillsand Westwood.
The trend of lawfirms moving to higher-rent areasisnot specific to Southern California. Nationally, tenantshavedemonstrated apreference fortop-tier spacewith many amenitiessuchason-site gyms, restaurants, coffee shops andother retail.
“Clients comevisit andtheywant to be in the nicest buildings in the market,”saidJohn McWilliams, aresearchmanageratCushman & Wakefield who workedonthe study In addition to LosAngeles, both Dallas-Fort Worth andSan Francisco sawsignificant year-over-year gains in leasingactivity by thelegalsector.
Small and Mid-Sized Firms
Many of the largest firms in the country have outposts in LosAngeles,but theareaalso has alarge contingent of small and mid-sized firms that havepractice areaspecialtiesor niche clientele. Theentertainment business is well-known, but there are also tech, financialservices, real estate owners and operatorsand privateequityfirms thatgenerate litigation and transactional work.
“Wehaveabroad and diverse economy. There’salot of strong, localfirmsworkingfor major businesses that are nottobe underestimated,”saidRaimondo ▐
TOP 100 LAWFIRMS
Ranked by NumberofAttorneysinLos
The top 100 largest law firms with officesin LosAngelesCounty employ7,498 attorneys in local offices. That includes 3,215partners, plus associates, counseland otherstaffattorneys. Firms handle awide range of industriesand work. The top 100 firms work on majorpractice areas such as litigation, mergers and acquisitions, bankruptcies, labor and employment,intellectual property, real estate, criminal lawand niche specialties such as family law, municipal law, and trusts and estates.
LosAngeles-based Sheppard, Mullin, Richter &Hampton LLP is the top overall firmonthe list with 299 attorneys in LosAngelesCounty. Sheppard Mullin hasexpanded its real estate practice group,adding 50 attorneys nationally to the 120-person group since 2022. In Los Angeles, it added former LosAngelesCity AttorneyRocky Delgadillo as apartner in the real estate, energy,land use and environmental practicegroup in LosAngeles. He joined the firminMarch from DLAPiper LLP.
GibsonDunn &Crutcher reported 298 local attorneys, which is one of the largest of its21offices worldwide.The firm has more than 1,900 attorneys in total. The top fivefirms in Los Angeles each have more than 200attorneys locally,including Latham &Watkins, O’Melveny &MyersLLP,and Kirkland & Ellis LLP.Although O’Melveny& Myers wasfounded in 1885 in LosAngeles, Gibson Dunn &Crutcher in 1890 in LosAngeles, and Latham&Watkins was founded in 1934inLos Angeles, both firmsdonot recognize aformalheadquarters location.
There are some firmsthathave multiple offices in the area. Typically,large firmsmay have officesinboth Century City and Downtown LosAngeles. The multiple officestypically handle different types of clienteleand workwith officesin CenturyCitytypically handling more entertainmentwork while centralcityoffices closer to the courthouses can handle litigationwork. The top 100 firms have acombined 128 offices in LosAngelesCounty. There are also larger law offices in Westside neighborhoods such as Westwood andSanta Monica, as well as the SouthBay and San GabrielValley.
Overall,these 100 firms employ more than 13,000 people in LosAngelesCounty.
-DavidNusbaum
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TOP 100 LAWFIRMS
TOP 100 LAW FIRMS S
TOP 25 LAWFIRMS
CORPORATE
Ranked
by
Number of Attorneys in LosAngeles County
Corporate attorneys workona wide array of transactional work andotherlegal needsthat are separate from litigationmatters. They review mergersand acquisitions, restructurings and bankruptcies; provide guidancefor debt and equity financing; review contracts andadvise on regulatory issues.
Topfirm Kirkland &Ellis LLP has117 attorneysin itslocal offices. Notable recenttransactions include advising Galleher,aportfolio companyofTransom CapitalGroup LLC, in connection with the acquisition of TomDuffy Co., awholesaleflooring product distributor in theUnited States, by Galleher’sparentcompany,Artivo Surfaces.
Sheppard Mullin hasthe second largestcorporate practicegroup in LosAngeles Countywith 75 attorneys in the group.The firm hasworkedonseveral recent notable transactions,including one of the most recognizable attractions in the area. It advised the sellers of Pacific Park on the SantaMonicaPierinits sale to New York-based SC Holdings in March.The sellerswere led by lead investor Off Road Capital
Partners. It also recentlyadvised Uproxx StudiosLLC in the acquisition of mediabrands andassets from Warner Music Group.UproxxStudios LLC, anewly formed independentcompany, hasthe exclusive licensetorepresent Warner Music Group’s YouTube inventoryfor all media sales in the United States
O’Melveny &Myers ranked thirdamongthe local corporate practice groups with 72 attorneys. The companyworksonmajor transactions, such as the $1.9-billion acquisition of Hawaiian Airlines by Alaska Airlines. Thetransactionwas announcedinDecember 2023 andcleared regulatorswithin nine months. Amultidisciplinaryteamofantitrust,M&A andlabor lawyers advised Alaskaonthe merger agreement, its clearance through the U.S. Department of Justiceand U.S. Department of Transportation regulatoryreview processes, and thedismissalofprivate antitrustlitigation.
Overall, the 25 largestcorporatepracticegroups in LosAngeles County reported 953attorneys in local offices, which included643 partners.
TOP 25 LAWFIRMS
LABOR &EMPLOYMENT
Labor and employment attorneysspecialize in apracticegroup that canimpact all sectors, but labor-intensivework suchashealth care, hospitality, automotiveand retailare major employment groups in Southern California, which supports demand for thisniche.The 25largest labor and employmentpracticegroups in LosAngelesCounty reported 691 totalattorneys for the specialty in local offices, whichincluded 270 partners.
In an era of hybrid andremote work, thelabor and employmentsector is one ofthe fastest-growingpractice groupareas. Employersand employeesare facingnew challengesdaily that arecomplicated by regulatory changes at thelocal, state andnational levels.
California’shealth careminimum wage law,SB525, was cited as one of the biggestfactorsthatcreated agreater need for labor and employment workover the past year, accordingtoJonathan Brophy, co-managing partner ofthe Century City officeofSeyfarth Shaw LLP and alabor andemployment attorney. He said that thestate legislature also enacted some of the most substantive changestothe Private Attorneys General Act in its
20-year history, which has led clientstoseek guidance on the newprovisions
To quickly respondtothese changes andothers,the firm hascreated ateamofattorneys and experts to address workplace disputes
“Seyfarth has receivedstrongdemand for ournew CulturalFlashpoints practice,a teamofhighlytrained labor andemployment lawyers, policy experts and former government insiders who canjump into themost fraught workplace conflicts andprovide legalguidance and practical solutions,especiallyduring thisyear’s contentious electioncycle,”saidBrophy
Seyfarth wasthe top-rankedfirm on the list of the largestlabor andemployment practice groups in Los Angeles with80attorneys, whichaccountsfor more than half of itslocal attorney headcount. The firm, which recently recognizedits 50th yearinLos Angeles, added anotable three-lawyer teamfrom Morgan Lewis and two-lawyer teamfrom Hunton Andrews Kerthtoits L.A. labor andemployment department.
Ranked by Number of Attorneys in LosAngeles County
TOP 25 LAWFIRMS
Litigation
Dispute resolution is keytoapproaching abroad spectrumoflegal issuesfrom antitrust and unfairtrade practices to international law disputes, environmental controversies, white-collar crime, compliance-related investigations, appeals and complexclass actions
Gibson Dunn &Crutcher has thelargest group of litigators amonglocalfirms with 191litigationattorneysinits Century Cityoffice. The firm hasmore than 950 attorneys focused on litigationmatters worldwide
Recent casesfor thefirm includea landmarkSupreme Court ruling upholding thecityofGrants Pass, Oregon’s publiccampinglaws. Thecase haswidespreadimportance for local governments across the countrygrappling with the homelessness crisis. The firm assembled abroad coalition, includingGov.GavinNewsom anddozens of cities and states acrossthe country.
Litigation firm Quinn EmanuelUrquhart&Sullivan LLP holds the secondspot on the list with 177attorneys in its localoffice.The LosAngeles-based firm has grown steadily since its founding in 1986 and openeda now22-person office in Miami.
Arecent notable case for QuinnEmanuelwas playing akey role in the approval of the country’slargestsolar project, OakRun Solar, in which an estimated $35 million in future union wages was securedfor its pro bono client InternationalBrotherhood of ElectricalWorkers Local 683.
AtO’Melveny&Myers LLP, arecent leadershipchange named twopartners,PamelaA.Millerand Steven J. Olson, as co-chairsofthe firm’slitigation department
Thefirm also announcedthe formation of anew securities litigation and financial servicespracticegroup that combinedtwo powerhouse practices that share many common clients.
“Byregularly refreshing our leadership roles, we not only provide professional development opportunities for more ofour partners but also invite new leaderstosharetheir diverseperspectivesand bountiful energy as we work to deliver outstanding results forclientsand pursue our strategicpriorities,” said Bradley Butwin,O’Melvenychair, in astatement.
Overall,the 25 largest litigation practice groupsinLos Angeles Countyreported 1,615 attorneys in localoffices, which included643 partners
Candice Choh Kahn Scolnick
Ranked by Number of Attorneys in LosAngeles County
Real estate
Ranked
by
Number of Attorneys in LosAngeles County
The real estate sectorsupports ahistorically cyclical industry, buthighinterestrateshave caused acascadingseriesofevents that have negatively impacted the sectorthatwas compounded by the impactofthe pandemic andfacing looming debt maturities. Higher interest rates have reduced valuations, which in turn hasled to higher carryingcosts,lower valuations and lenders leaving the sector.Nevertheless, there have beensomebright spots such as industrial, retailand build-to-suit residential.
“Surprisingly, retailhas shown strength as owners have re-oriented andre-developed their centersto, for instance,add housing. All of this hasled to entitlement and developmentactivity to addressthe demand by builders for more landthat is entitled for residential uses,” said Mathew Wyman, partner and chairperson for Cox, Castle&Nicholson.
Cox, Castle&Nicholson hasofficesinLos Angeles, Orange Countyand SanFrancisco. It employs 140 transactionaland litigationattorneys across thestate and specializesinall aspects of commercial real estate Thatincludes transactions,entitlement,development,
property leasing andenvironmental compliance Environmental issues have gained in demandwith the growth of newtechnologyinthe alternative energysector
“Wesee this sector as only continuing to grow as newtechnologybothenables and encourages its development,”saidWyman.
Morechangesare comingfor therealestateindustry. For example, the state recently passed AB 98, which willchangehow largewarehouses are developed and operated.Industrial real estateoperators will likely face increased costsbecause of theinfrastructure and equipmentrequirements, including the needfor detailed truck routing plansand separatetruckentrances.The first set of standards will go into effect on Jan.1,2025, andthe remaining standards ayearlater
Overall, the 25 largestrealestatepractice groupsinLos Angeles Countyreported 490 attorneys for the specialty in local offices, which included287 partners
TOP 25 LAWFIRMS
in Orange COunty
Ranked by Number of Attorneys
Law officesinOrangeCountyconsistofa diverse mix of localand national firms ledbyRutan&Tucker,a regionalfirm withheadquarters in Irvine’s The Boardwalkoffice development. It also hasoffices in San Francisco, Palo Alto,and its mostrecent office opened in 2022in Scottsdale,Arizona.
Earlier this year,acclaimed political andelection law attorneyJim Suttonjoined Rutanasapartnerinits SanFrancisco office to expand thefirm’s election law capabilities,including launching aformalelectionlaw practice group.The group includes partner Matthew Alvarez andassociate EliLove and political compliance specialistsChris Gembinskiand Cameron WhitesideinSan Francisco
“Weare excited about theopportunitytoexpandour election lawcapabilities inCaliforniaespecially as we head intoanother election cycleatthe local, state and Federal levels,”saidMichael Adams,Rutan’s managingpartner,in astatement. “Our clients will now haveaccess to theexceptional campaign, lobbyingand ethics law expertise that Jimand histeam bring to Rutan.”
The top100 largestlaw firmswith offices in OrangeCountyemploy 1,260 attorneys in localoffices. Thatincludes 556partners, plus associates, counsel and otherstaff attorneys.Asa group, the 25 largest firms employ 2,254 people in Orange County,which includes attorneys, paralegalsand supportstaff.
Some firms may have qualified for this list, butdeclined to provide information.
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Among smallerfirms, Pittsburgh-based Leech Tishman combined withLos Angeles-based Nelson Hardiman, effective Oct. 1. Nelson Hardimanattorneys specialize in the healthcare industryand workwith hospitals, health systems, other health facilities, physician organizations, telehealth providers andlabsonlicensing, operational andreimbursement issues
Alston &Birdopeneda newoffice inCentury City recently andrelocated its downtown Los Angeles office to aspace that includes an outdoor terrace.The firm hasmademoves on the hiring front as well.Itadded partners Edward Poplawski and OliviaKim to thefirm’s LosAngeles office
Theduo hasworked together for morethan20 years and hasextensive intellectual property and complexpatentlitigation experience.They bolstered theintellectual propertypractice that added partners Erik Carlson and Theresa ConduahinSouthern Californiaearlier thisyear.
AContinued ImplementationofTech
Artificial intelligence (AI) technologyissomething that allcompanies arelookingtointegrateinto processes andworkflows,including lawfirms. Some firms have takena more cautious approach and have been slow to add the technology.
“Weare evaluating closely andwillimplement where theymakesense,but onlyafter we are confident that theywillserve our clients’needs andthatcritical concerns like information security are addressed to our satisfaction,” saidDwayneMcKenzie, managing partneratCox,Castle &Nicholson
Other firms have looked at ways to implement AI across the board. In some instances,itis employees who arethe biggestproponents, creatingwaystoengage with the newtech.
At Seyfarth Shaw LLP, the companyimplemented aunique andsecure generative AI-powered toolsuite thatwas rolled out to2,000lawyers
andstaffacross the firm. Thetoolrecorded 2,500employee interactions within its first three months. At an employee fair where ideas werepresentedtoincreasecollaboration and innovation, the firm reported that all seven finalists usedAIintheir proposals. Twoofthe collaboratorsonthe winning entrywere LosAngeles partners Michael Afar andAndrew Paley.
“Wedesigneda long-term strategytoembed generative AI in the fabric of Seyfarth, rolling out multiple effortsthatalign technologywith process andpeople,”saidJonathanBrophy, CenturyCity office managing partner at Seyfarth Shaw
However,not everysector is as active in utilizing AI technology. According to the recent AllenMatkins/ UCLA Anderson Forecast CaliforniaCommercial Real Estate Surveypublished in the summer, although the use of AI technology is on the rise in the commercial real estate sector, respondents to the survey hadlimited use cases where it has been utilized. Thoseinclude anticipating what the supply chain is going to look likeand reducing carbon footprints to robotics that helppick parts.
Yet, like many attorneys, caution and risk assessmentare key, with firms taking await-and-see approach to AI’simplementation. “Despite the increased demand in datacenters, specifically for AI infrastructure, few of our respondents areactually using AI to inform and developtheir strategies going forward,”saidAlykhan Shivji, partner at real estatelaw firmAllen Matkins, in astatement. ▐
-DavidNusbaum
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