Closure of McDonough Holland & Allen Puts Lawyers in Play -- By: Cheryl Miller

Attorneys scrambled behind the scenes in the wake of Friday's announcement that McDonough Holland & Allen, Sacramento, Calif.'s second largest law firm, would shut its doors this year.

Firm leaders have not spoken publicly about the closure other than to issue a three-paragraph statement saying that a "variety of reasons," including attorney departures, had led to a decision to "wind down ... operations" with a Labor Day target date.

The 80-attorney firm, with a branch office in Oakland, did not use the word "dissolution," leading to speculation that a core group of attorneys may forge a new practice, albeit one that doesn't operate under the name McDonough Holland.

"Going forward, individual and small group announcements will be made as transition plans are finalized," the statement read.

Industry observers said Monday that the Sacramento firm of Boutin Gibson Di Giusto Hodell may pick up a number of McDonough Holland attorneys. Boutin Gibson has a significant real estate group, and McDonough Holland has a long history in real estate and construction practices. Boutin Gibson partners did not return phone and e-mail messages Monday.

Sources were also eyeing the Sacramento office of Stoel Rives as a possible destination for a number of McDonough Holland attorneys. The two firms recently discussed some type of merger, sources said, but talks did not produce a deal.

"Obviously, to bring them all in and integrate them with [Stoel Rives], the numbers didn't work out," said Tom Chase, a Sacramento area legal recruiter.

McDonough Holland maintains a large public law practice; its attorneys represent dozens of municipalities, including numerous redevelopment agencies. That group could be enticing to other firms, Chase said.
Donald Oppenheim, chief operating officer of Meyers Nave Riback Silver & Wilson, said his Oakland, Calif.-based firm, with its emphasis on public law practice, is "always" in the market for talented attorneys, but he declined to say if conversations had taken place with McDonough Holland partners.

Much of the debate on the reasons behind McDonough Holland's demise has focused on the March departure of the firm's 10-person health care group to DLA Piper. For years, McDonough Holland had been tied to regional health care groups and hospitals, including Northern California's Sutter Health.
"That was a huge hit for the firm," said Chase. "They were a very, very profitable group."

The group's leader, Stephen Goff, said Monday that he did not know about the firm's impending closure until after Friday's announcement and added that he had not spoken with anyone at the firm. He declined further comment.

Goff's departure followed the firm's May 2009 move to high-end office space on three floors of a newly constructed downtown Sacramento high-rise. The firm signed a 15-year lease for the space in 2008.
"That put a lot of pressure on the partners who were still at the firm," said Chase.

http://www.law.com/jsp/law/sfb/lawArticleSFB.jsp?id=1202462917757&Closure_of_McDonough_Holland__Allen_Puts_Lawyers_in_Play