June 20, 2006

THE DAILY JOURNAL

By Drew Combs

LOS ANGELES – In a move expected for months, Mark A. Neubauer announced Monday he and his team of business litigators will depart Santa Monica-based Alschuler Grossman Stein & Kahan to open a Century City office of Washington, D.C.’s Steptoe & Johnson.

So far, Neubauer and three other Alschuler Grossman partners have said they are headed to Steptoe & Johnson, but some associates likely will follow, sources said. The move will create the second Southern California outpost for the 400-attorney, six-office firm, which already has 19 attorneys working out of downtown Los Angeles.

Neubauer’s departure from Alschuler Grossman has been rumored since the Santa Monica firm began intensive merger talks earlier this year with Minneapolis-based Robins, Kaplan, Miller & Ciresi.

Merger discussions between the two firms were ultimately unsuccessful, but such a combination would have created conflicts for Neubauer.

Neubauer represents pharmaceutical behemoth Johnson & Johnson, which has been the target of lawsuits filed by Robins Kaplan.

The two firms were unable to reach a deal, primarily because Alschuler Grossman partners were divided on the merits of the combination, according to knowledgeable sources.

This development should have left Neubauer breathing a sigh of relief. But sources with knowledge of the situation said he felt slighted by his fellow partners, who had proceeded with merger discussions even though they knew conflicts would have forced him from a merged firm.

Neubauer disputed the account and said, “I could have made a lateral move much sooner if that was true.”

Bruce A. Friedman, Alschuler Grossman’s managing partner, also would not confirm the account.

“As far as I knew up until the time that Mark announced he was leaving,” Friedman said, “he was a happy participating member of our firm.”

Neubauer, a member of Alschuler Grossman’s executive committee, announced to the partnership last week that he was departing for Steptoe & Johnson.

Neubauer said he is making the move not because of any bitterness but because it is “a rare opportunity to open up an office for a national law firm.”

“I love the practice of law and the business of law,” he said, “and this will allow me to combine both with a great firm.”

The other Alschuler Grossman partners joining Neubauer in the lateral move are Rebecca Edelson, Katessa Charles Davis and Meredith M. Moss.

“Our view is that we are happy for Mark, Rebecca, Katessa and Meredith,” Friedman said. “They are great friends and excellent lawyers.”

The attorneys’ practice covers many aspects of business litigation, including securities, employment and intellectual property.

In addition to Johnson & Johnson, the lawyers have represented Komatsu Forklift U.S.A. Inc., Cummins Engine Co., Kyocera Mita America Inc. and Blockbuster Inc.

Legal recruiter Bill Nason at Watanabe Nason & Seltzer brokered the lateral moves.

In an interview Monday, Roger Warin, chairman of Steptoe & Johnson, said, “When looking to expand our capacity in Los Angeles, we wanted top-quality lawyers, top-quality people and good economics.”

He added, “These lawyers bring all three.”

Warin said the firm hopes to have by the end of the year 15 lawyers practicing out of the new Century City office, located at 2121 Avenue of the Stars.

And the firm has prepared for more additions.

“We are renting space that will accommodate up to 40 lawyers, and in three to four years, that is exactly where we want to be,” he said.

Warin, based in Washington, said initially the firm planned to add lawyers to its pre-existing office in downtown Los Angeles. But after a few discussions with local attorneys, he realized Steptoe & Johnson would need a Westside outpost.

“We opened a Century City office because for some strange reason a lot of people that live on the Westside don’t like to commute to downtown Los Angeles,” he said.