Merger of Steven's legal firm detailing the financial struggles of the firm leading to their inability to continue their representation of Steven

1. Patton Boggs, the Washington legal pioneer that helped established the modern-day lobbying industry, isPatton Boggs, the Washington legal pioneer that helped established the modern-day lobbying industry, is
merging with Squire Sanders, a large international law firm with roots in Cleveland.merging with Squire Sanders, a large international law firm with roots in Cleveland.
The deal, approved by partners at both firms this week, brings to an end Patton Boggs’ 52-year run as anThe deal, approved by partners at both firms this week, brings to an end Patton Boggs’ 52-year run as an
independent law and lobby firm, one that saw it become a trailblazer in the influence industry.independent law and lobby firm, one that saw it become a trailblazer in the influence industry.
The newly combined firm, which will bring together Squire Sanders’ 1,300 lawyers with Patton Boggs’ 330The newly combined firm, which will bring together Squire Sanders’ 1,300 lawyers with Patton Boggs’ 330
attorneys, is effective June 1 and will be called Squire Patton Boggs. The firms had beenattorneys, is effective June 1 and will be called Squire Patton Boggs. The firms had been in merger talksin merger talks
since Februarysince February and the deal is widely viewed within the legal industry as critical to Patton Boggs’ survival.and the deal is widely viewed within the legal industry as critical to Patton Boggs’ survival.
Patton Boggs “evolved into an industry game-changer,” Thomas Hale Boggs Jr., chairman of Patton BoggsPatton Boggs “evolved into an industry game-changer,” Thomas Hale Boggs Jr., chairman of Patton Boggs
said in a statement. “Through our combination with Squire Sanders we are doing it again.”said in a statement. “Through our combination with Squire Sanders we are doing it again.”
The end of Patton Boggs as a standalone firm is a tale of a changing industry, where a firm’s ability toThe end of Patton Boggs as a standalone firm is a tale of a changing industry, where a firm’s ability to
influence a few key powerbrokers is giving way to the need to sway larger groups of lawmakers and theinfluence a few key powerbrokers is giving way to the need to sway larger groups of lawmakers and the
public as a whole.public as a whole.
In recent months, Patton Boggs’ erosion has been on full display. The firm had toIn recent months, Patton Boggs’ erosion has been on full display. The firm had to lay off 40 attorneys andlay off 40 attorneys and
70 staffers70 staffers to deal with declining finances, high-profile partners defected to other firms, and at least oneto deal with declining finances, high-profile partners defected to other firms, and at least one
previous merger attempt was called offprevious merger attempt was called off. Patton’s troubles were heightened by its involvement in an unusual. Patton’s troubles were heightened by its involvement in an unusual
and expensive legal battle with Chevron, which was resolved afterand expensive legal battle with Chevron, which was resolved after Patton Boggs agreed earlier this month toPatton Boggs agreed earlier this month to
pay a $15 million settlementpay a $15 million settlement to the oil giant.to the oil giant.

2. Patton Boggs is not the only law firm in recent years to struggle —Patton Boggs is not the only law firm in recent years to struggle — HowreyHowrey dissolved in 2010,dissolved in 2010, Dewey &Dewey &
LeBoeufLeBoeuf famously imploded in 2012, and almost every major U.S. law firm isfamously imploded in 2012, and almost every major U.S. law firm is facing pressure to maintainfacing pressure to maintain
revenue and profitabilityrevenue and profitability. This is largely a symptom of the economic downturn that began in 2008 and. This is largely a symptom of the economic downturn that began in 2008 and
forced law firms’ biggest clients — the legal departments of major corporations — to drastically scale backforced law firms’ biggest clients — the legal departments of major corporations — to drastically scale back
their legal budgets. But because Patton Boggs is a marquee lobbying brand in Washington, news of itstheir legal budgets. But because Patton Boggs is a marquee lobbying brand in Washington, news of its
troubles has been scrutinized more closely here.troubles has been scrutinized more closely here.
Patton Boggs’s rise owes much to one of its namesakes, Boggs, the son of Louisiana congressman and HousePatton Boggs’s rise owes much to one of its namesakes, Boggs, the son of Louisiana congressman and House
majority leader Thomas Hale Boggs Sr. and Lindy Boggs, who succeeded her husband after he died. Aftermajority leader Thomas Hale Boggs Sr. and Lindy Boggs, who succeeded her husband after he died. After
working in the Lyndon B. Johnson administration, Boggs went to law school and joined James Patton Jr. asworking in the Lyndon B. Johnson administration, Boggs went to law school and joined James Patton Jr. as
the sixth lawyer of the firm that became Patton Boggs.the sixth lawyer of the firm that became Patton Boggs.
At the time, there were — by Boggs’s estimate — fewer than 100 people in Washington who calledAt the time, there were — by Boggs’s estimate — fewer than 100 people in Washington who called
themselves lobbyists. His firm was a fledgling five-man operation trying to make its mark in what was atthemselves lobbyists. His firm was a fledgling five-man operation trying to make its mark in what was at
time considered an up-and-coming practice area.time considered an up-and-coming practice area.
“Tommy Boggs was a trailblazer in the city of the law firm lobbying model,” said Mike House, director of“Tommy Boggs was a trailblazer in the city of the law firm lobbying model,” said Mike House, director of
Hogen Lovell’s legislative group. “He is a great strategist and nobody in the city is cooler under fire than heHogen Lovell’s legislative group. “He is a great strategist and nobody in the city is cooler under fire than he
is. This is a legacy he can look back on with pride.”is. This is a legacy he can look back on with pride.”
In the early days, K Street firms were mostly small shops led by former heads of federal agencies whoIn the early days, K Street firms were mostly small shops led by former heads of federal agencies who
became lobbyists after leaving the government. Boggs and Patton envisioned a different kind of lobbyingbecame lobbyists after leaving the government. Boggs and Patton envisioned a different kind of lobbying
operation — one that was integrated into a major law firm, staffed with attorneys well-versed in the areas ofoperation — one that was integrated into a major law firm, staffed with attorneys well-versed in the areas of
law that lobbyists were looking to change.law that lobbyists were looking to change.
The formula served them well. One of the firm’s early successes, the victory that cemented Patton Boggs asThe formula served them well. One of the firm’s early successes, the victory that cemented Patton Boggs as
one of the most influential lobby shops in Washington, was when they helped orchestrate the first Chryslerone of the most influential lobby shops in Washington, was when they helped orchestrate the first Chrysler
bailout in 1979.bailout in 1979.
Patton Boggs enjoyed unprecedented success during the ’70s, ’80s and ’90s when Washington’s lobbyingPatton Boggs enjoyed unprecedented success during the ’70s, ’80s and ’90s when Washington’s lobbying
industry was led by a cult of well-known personalities. Boggs — along with Gerald Cassidy of Cassidy &industry was led by a cult of well-known personalities. Boggs — along with Gerald Cassidy of Cassidy &
Associates, Stu Van Scoyoc of Van Scoyoc Associates, Bob Strauss of Akin Gump and J.D. Williams ofAssociates, Stu Van Scoyoc of Van Scoyoc Associates, Bob Strauss of Akin Gump and J.D. Williams of
Williams & Jensen, and House of Hogan Lovells — put K Street on the map as the nation’s epicenter ofWilliams & Jensen, and House of Hogan Lovells — put K Street on the map as the nation’s epicenter of
advocacy.advocacy.

3. “When I started this gig, there were about 15 people who ran the government,”“When I started this gig, there were about 15 people who ran the government,” Boggs said in a 2012Boggs said in a 2012
interview with the Postinterview with the Post. “You didn’t need a lot of lobbyists, you only had to influence about 15 people.”. “You didn’t need a lot of lobbyists, you only had to influence about 15 people.”
That is no longer the case.That is no longer the case.
“Now you’ve got at least 5,000 people who make government decisions that affect lots and lots of folks,”“Now you’ve got at least 5,000 people who make government decisions that affect lots and lots of folks,”
Boggs said in 2012. “As government has gotten more dispersed, you need more people to communicate withBoggs said in 2012. “As government has gotten more dispersed, you need more people to communicate with
the people who now have policymaking power, that’s why the profession has grown so fast.”the people who now have policymaking power, that’s why the profession has grown so fast.”
As of 2013, there were about 12,341 federally registered lobbyists, according to theAs of 2013, there were about 12,341 federally registered lobbyists, according to the Center for ResponsiveCenter for Responsive
PoliticsPolitics. And that figure doesn’t include the thousands of people in public affairs firms, advertising agencies,. And that figure doesn’t include the thousands of people in public affairs firms, advertising agencies,
grass-roots and Internet campaigns that contribute to the influence machine.grass-roots and Internet campaigns that contribute to the influence machine.
As lobbying became more institutionalized as a mechanism of achieving change in the government, the firmAs lobbying became more institutionalized as a mechanism of achieving change in the government, the firm
added more manpower and structure. In the mid-1990s, Patton Boggs made a concerted effort to diversifyadded more manpower and structure. In the mid-1990s, Patton Boggs made a concerted effort to diversify
its practices, bulk up on staff and add new layers of management, going from a 150-lawyer firm to the 550-its practices, bulk up on staff and add new layers of management, going from a 150-lawyer firm to the 550-
lawyer, 1,100-employee firm it was as of 2012.lawyer, 1,100-employee firm it was as of 2012.
But size made the firm susceptible to more nimble competitors, and Patton Boggs found itself enmeshed inBut size made the firm susceptible to more nimble competitors, and Patton Boggs found itself enmeshed in
another problem—a case involving Chevron.another problem—a case involving Chevron.
In 2010, Patton Boggs attorneys began representing a group of indigenous people from Ecuador who hadIn 2010, Patton Boggs attorneys began representing a group of indigenous people from Ecuador who had
sued Chevron over alleged health and environmental damage caused by toxins from oil drilling. Thesued Chevron over alleged health and environmental damage caused by toxins from oil drilling. The
attorney representing the plaintiffs, New York lawyer Steven Donziger, had won a $9.5 billion judgmentattorney representing the plaintiffs, New York lawyer Steven Donziger, had won a $9.5 billion judgment
from an Ecuadorian court, and Patton Boggs joined in the effort to help the plaintiffs collect the damages.from an Ecuadorian court, and Patton Boggs joined in the effort to help the plaintiffs collect the damages.
The law firm’s involvement quicklyThe law firm’s involvement quickly became problematicbecame problematic. Chevron went after Donziger, alleging the verdict. Chevron went after Donziger, alleging the verdict
was the result of improper evidence, including a key expert report. In March this year, a federal judge inwas the result of improper evidence, including a key expert report. In March this year, a federal judge in
New YorkNew York sided with Chevronsided with Chevron, ruling that the verdict in Ecuador was the product of fraud and racketeering,, ruling that the verdict in Ecuador was the product of fraud and racketeering,
and that the judgment should not be enforced – but did not rule on whether Patton Boggs had also engagedand that the judgment should not be enforced – but did not rule on whether Patton Boggs had also engaged
in wrongdoing. Shortly afterward, however, the judgein wrongdoing. Shortly afterward, however, the judge allowed Chevron to pursue claims against Pattonallowed Chevron to pursue claims against Patton
BoggsBoggs for allegedly committing fraud while trying to enforce the judgment. The matter was finally settledfor allegedly committing fraud while trying to enforce the judgment. The matter was finally settled
earlier this month, whenearlier this month, when Patton Boggs agreed to pay Chevron $15 millionPatton Boggs agreed to pay Chevron $15 million in exchange for Chevron agreeingin exchange for Chevron agreeing
to release all claims against the law firm and its partners.to release all claims against the law firm and its partners.

4. With the settlement, talks with Squire Sanders quickly moved toward completion,With the settlement, talks with Squire Sanders quickly moved toward completion, culminating in a voteculminating in a vote byby
partners at both firms this week.partners at both firms this week.
Apart from the Chevron matter, however, Patton Boggs had been grappling with structural problems forApart from the Chevron matter, however, Patton Boggs had been grappling with structural problems for
years. The firm relied for too long on Boggs himself and didn’t have a succession plan implemented soonyears. The firm relied for too long on Boggs himself and didn’t have a succession plan implemented soon
enough, according to some former Patton Boggs attorneys. Long plaguing the firm was what legal industryenough, according to some former Patton Boggs attorneys. Long plaguing the firm was what legal industry
analysts call an “eat what you kill” compensation system — lawyers’ take-home pay is closely tied to theanalysts call an “eat what you kill” compensation system — lawyers’ take-home pay is closely tied to the
clients they bring into the firm, known as “origination,” so they have little incentive to share work with otherclients they bring into the firm, known as “origination,” so they have little incentive to share work with other
partners. That leads to a fragmented atmosphere where small groups of lawyers working for that client havepartners. That leads to a fragmented atmosphere where small groups of lawyers working for that client have
little financial incentive to share that work with other groups. That makes it easier for groups to leave whenlittle financial incentive to share that work with other groups. That makes it easier for groups to leave when
partners are unhappy and looking for to jump ship, because legal business is portable and they take thepartners are unhappy and looking for to jump ship, because legal business is portable and they take the
client with them to their new firm.client with them to their new firm.
Moreover, for years, Patton Boggs allowed many partners to stay even though they did not generateMoreover, for years, Patton Boggs allowed many partners to stay even though they did not generate
significant revenue for the firm, according to some current and former Patton Boggs lawyers. Keepingsignificant revenue for the firm, according to some current and former Patton Boggs lawyers. Keeping
unproductive partners was doable when business was booming, but became unsustainable when times gotunproductive partners was doable when business was booming, but became unsustainable when times got
tough.tough.
Though Patton Boggs has taken its hits, it is still an incredibly valued brand because of its reputation on KThough Patton Boggs has taken its hits, it is still an incredibly valued brand because of its reputation on K
Street. Patton Boggs remains the top lobby shop in Washington in terms of revenue. In 2013, the firmStreet. Patton Boggs remains the top lobby shop in Washington in terms of revenue. In 2013, the firm
earnedearned $40 million in publicly reported lobbying fees$40 million in publicly reported lobbying fees — $6 million more than the next firm, Akin Gump.— $6 million more than the next firm, Akin Gump.
The fact that the Patton Boggs name will remain intact in the newly combined firm is a testament to thatThe fact that the Patton Boggs name will remain intact in the newly combined firm is a testament to that
brand recognition. Squire Sanders is a full-service law firm, but has never been known for federal lobbyingbrand recognition. Squire Sanders is a full-service law firm, but has never been known for federal lobbying
work. Bringing in Patton Boggs fills that function.work. Bringing in Patton Boggs fills that function.
At a reception this month to welcome three new lobbyists to the firm, John Burlingame, managing partnerAt a reception this month to welcome three new lobbyists to the firm, John Burlingame, managing partner
of Squire Sanders’ Washington office, said the firm hoped to continue to grow its advocacy practice.of Squire Sanders’ Washington office, said the firm hoped to continue to grow its advocacy practice.
“Patton Boggs is the premier public policy firm in the world, and this combination establishes us as the go-“Patton Boggs is the premier public policy firm in the world, and this combination establishes us as the go-
to firm for public policy work,” Squire Sanders chairman Jim Maiwurm said in a statement.to firm for public policy work,” Squire Sanders chairman Jim Maiwurm said in a statement.
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