Skadden's Andrew Sandler Starts New Firm

The financial meltdown has crippled a lot of law practices, but for Andrew Sandler, it’s created a boom in business. As head of the consumer financial services enforcement and litigation practice at Skadden, Arps, Slate, Meagher & Flom, he’s devoted much of the past year to defending banking and lending clients against litigation stemming from the subprime mortgage crisis. But after 22 years at Skadden, Sandler is now striking out on his own, combining his practice with D.C. boutique Buckley Kolar to form financial services firm BuckleySandler. The new firm opened its doors today. 

Sandler is also now C.E.O. of Corporate Risk Advisors, a consulting firm that advises the financial services industry. Buckley Kolar founding partner Jeremiah Buckley is president of the consulting firm, and it operates out of the same offices as BuckleySandler, at 1250 24^th Street in Northwest Washington.  

“What I’m building is a new comprehensive set of solutions to help address the issues confronting the financial services industry,” says Sandler of his reasons for leaving Skadden.

Sandler and Buckley are co-chairmen of the new firm. Skadden partner Benjamin Klubes is joining Sandler, and eventually, Sandler says he hopes that “much of our team will choose to join us.” Sandler says BuckleySandler will have about 50 lawyers, mostly based in D.C., with some in Los Angeles and New York. Buckley Kolar had 36 lawyers, and there are five lawyers remaining in Sandler’s former practice at Skadden, according to the firm’s Web site.

Prior to combining with Sandler, Buckley Kolar focused on regulatory work for financial services clients. Sandler brings litigation and enforcement capability. Both he and Klubes are currently representing Wells Fargo N.A. in a suit brought by the City of Baltimore that alleges the bank engaged in predatory lending in Baltimore’s poorest neighborhoods. They are also defending GMAC-RFC, Merrill Lynch, and Bear Stearns & Co. in similar subprime-related litigation brought by the City of Cleveland.

Sandler did not specify which clients will move with him to the new firm, but says, “I expect to bring a substantial part of my practice with me.”

Michael Rogan, head of Skadden’s Washington office, says, “We will continue to have an active practice,” and emphasizes that lawyers across the firm’s offices are involved in the work.

Sandler says, “Skadden will continue to be the strongest large firm practice in D.C. … I absolutely expect that BuckleySandler will become the strongest smaller boutique firm in D.C.”

Comments

[Stuart TenHoor]

Adam: While I also doubt whether Mr. Sandler wants to or needs to reduce his rates significantly (underline), you're missing the bigger issue. His movement to a new, smaller firm is reflective of an overall trend in the legal industry. Partners at larger law firms are very concerned about client retainage and new client origination. These goals are furthered by flexibility on rates. While the economic crisis is putting much more pressure on partners than they experienced even 18 months ago, the trend started several years before that, albeit more in some practice areas than others.

[Adam]

Seems pretty clear that absent the economic crisis and disproportionate amount his practice was contributing to the firm's profits (relative to what he was getting from it), that he wouldn't be leaving. I would doubt that he bills at a substantially lower rate at the new firm.

[Stuart TenHoor]

Is there any lawyer out there who still needs more evidence that withdrawing from a Skadden or a Latham to go to a new employer with lower billable hour rates can really make some sense?

It's not just banking and lending clients who could use a break.