Prominent Boston law firm votes to disband

BOSTON -- The partners of the Boston law firm of Testa, Hurwitz & Thibeault voted this morning to disband their 31-year partnership.

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After a brief meeting of the partners of the firm, which was once prominent in serving the region's high-tech industry, a statement was released by the firm concerning the action.

The Boston Globe this morning had reported the partners were going to meet today and a vote might be taken to dissolve the partnership.

The Globe story pointed out the loss in recent months of key partners as Boston and New York firms competed to rush in to snare lawyers or those who might help them in recruiting Testa Hurwitz clients.

The story said "the firm has been in a slide since the 2002 death of cofounder Richard Testa on the heels of a tech-market crash that crippled many of the firm's clients."

After the meeting the Boston Business Journal's Web site reported that only one partner in the firm dissented when the vote was taken.

In making the partner vote announcement, Managing Partner George Davitt said in the press release, "a law firm such as ours, although prominent, profitable and filled with talented lawyers is - like any professional services organization - knit of a fabric that, if stretched too thin, can unravel."

The release went on to state "in early December, 10 partners decided to leave the Firm, having found opportunities elsewhere that they considered more attractive than continuing at Testa. Although the Firm conducted merger discussions with a number of suitors during the past several weeks, many partners ultimately decided that they preferred other opportunities. This week the partnership recognized that the fabric that had held the Firm together for more than 30 years would no longer hold.''

Davitt added, "The decision reached today and the steps we will take in the days and weeks ahead reflect our belief that it is in the best interests of our clients to dissolve the Firm and to wind up its business in a responsible and orderly manner. Our goal is to ensure that there is no interruption in service to our clients and to assist with the smooth transition of our people, our practices and our clients to other firms."

The press release added that "George Thibeault, one of the Firm's founding partners, and a committee comprised of Bill Asher, former Managing Partner, Mark Smith, Chair of the Business Practice Group, and John Welsh, COO of the Firm, will manage the orderly winding up of the Firm. Testa employees (the firm has some 200 associates and 300 staff members) have received notice of 60 days of continued employment with the Firm. In addition, the Firm will offer outplacement assistance to the extent possible. The Firm's accounts receivable will be collected and vendors will be paid in an orderly fashion. The Firm has no outstanding bank debt.''

The statement concluded:

"Since its founding in 1973, Testa, Hurwitz & Thibeault, LLP concentrated its practice in the high technology and life sciences industries and the venture capital and private equity communities that financed them. It gained early notice in its work for the Digital Equipment Corporation and with General Georges Doriot and American Research & Development's early pioneering venture capital work.

"More recently the Firm has added labor & employment, trust and estate, immigration, white collar criminal defense, securities litigation, and patent and intellectual property specialties, with the latter becoming one of the largest such practices in New England.''