Myerson & Kuhn
Encyclopedia
Myerson & Kuhn was a New York-based law firm
that operated from 1988-1990. It was formed by name partners Bowie Kuhn
and Harvey D. Myerson, former partner in the defunct Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey
who brought some 80 attorneys with him from the unraveling firm. The new firm benefited from the arrival of former Finley, Kumble partners who brought such clients as Donald Trump
, Lehman Brothers
, Teleflex, Inc.
and ConAgra. In 1989, the firm launched in Los Angeles
with a group of 18 lawyers who defected from Shea & Gould
. The firm suffered a spectacular collapse in December 1989 amid discord with its biggest client, Shearson Lehman Hutton, predecessor to Lehman Brothers
over the alleged padding of legal bills, and mounting debts of over $11 million. Named partner Bowie Kuhn
fled to Florida as creditors sought to hold him personally liable for up to $3 million in firm debts. When the press and his creditors finally found him in Northern Florida, Kuhn told the New York Times, “My multiple great-grandfather Dr. William Worthington was the first Governor of this section of Florida after it was acquired from Spain in 1819.” Harvey Myerson, first given the moniker “Heavy Hitter Harvey” for his litigation acumen was later given the nickname in the legal press, “Agent Orange of the legal profession″ due to his extravagant tastes and unfulfilled ambitions which drove his firm into the ground financially. For example, guests at the launch party for the firm each received a Cartier SA
crystal apple with gold leaves and stem engraved with a quote from the Wall Street Journal remarking on the formation of the firm, 'A New Legal Powerhouse is Rising.' Though Myerson dreamt of relaunching a legal practice, he was sentenced to 70 months in federal prison for tax fraud and defrauding clients.
profession characterized by genteel mostly WASP
attorneys that shunned work such as hostile takeovers and bankruptcy
into a dynamic 'business' sector where profitability rather than collegiality was the most salient barometer of success. The 1980s saw a number of old line law firms collapse, including Lord Day & Lord
. Firms such as Myerson & Kuhn and Finley Kumble
were organized along different models, aggressively pursuing national expansion (and in some cases, international expansion) and plunging into the debt-fueled corporate transactions, including junk bond deals underwritten by Drexel Burnham Lambert
. Today's legal powerhouse, Skadden, Arps, Slate, Meagher & Flom
emerged at the same period with a reputation for being retained by corporate raiders waging proxy wars and other transactions, including bankruptcy (though it was founded earlier, in 1948). Skadden Arps was also the bankruptcy counsel for Finley Kumble. Latham & Watkins
also aggressively entered the high-yield (junk bond) and leveraged finance legal markets and served as primary outside counsel for Drexel.
Law firm
A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other...
that operated from 1988-1990. It was formed by name partners Bowie Kuhn
Bowie Kuhn
Bowie Kent Kuhn was an American lawyer and sports administrator who served as the fifth Commissioner of Major League Baseball from February 4, , to September 30,...
and Harvey D. Myerson, former partner in the defunct Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey
Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey
Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey was a United States law firm founded in 1968. The firm, based in New York, had grown from eight lawyers at its inception to over 700 lawyers at the time of its bankruptcy and dissolution in 1987...
who brought some 80 attorneys with him from the unraveling firm. The new firm benefited from the arrival of former Finley, Kumble partners who brought such clients as Donald Trump
Donald Trump
Donald John Trump, Sr. is an American business magnate, television personality and author. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's extravagant lifestyle, outspoken manner and role on the NBC reality show The Apprentice have...
, Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, Teleflex, Inc.
Teleflex, Inc.
Teleflex Incorporated , headquartered in Limerick, Pennsylvania, is an American manufacturing corporation providing medical devices used in critical care and surgery...
and ConAgra. In 1989, the firm launched in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
with a group of 18 lawyers who defected from Shea & Gould
Shea & Gould
Shea & Gould was one of New York's best-known law firms. It was established as a result of a merger in 1964 between Manning, Hollinger & Shea and Gallup, Climenko & Gould. The firm acquired several smaller niche practices in antitrust and other areas during the 1970s. The firm dissolved in 1994...
. The firm suffered a spectacular collapse in December 1989 amid discord with its biggest client, Shearson Lehman Hutton, predecessor to Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
over the alleged padding of legal bills, and mounting debts of over $11 million. Named partner Bowie Kuhn
Bowie Kuhn
Bowie Kent Kuhn was an American lawyer and sports administrator who served as the fifth Commissioner of Major League Baseball from February 4, , to September 30,...
fled to Florida as creditors sought to hold him personally liable for up to $3 million in firm debts. When the press and his creditors finally found him in Northern Florida, Kuhn told the New York Times, “My multiple great-grandfather Dr. William Worthington was the first Governor of this section of Florida after it was acquired from Spain in 1819.” Harvey Myerson, first given the moniker “Heavy Hitter Harvey” for his litigation acumen was later given the nickname in the legal press, “Agent Orange of the legal profession″ due to his extravagant tastes and unfulfilled ambitions which drove his firm into the ground financially. For example, guests at the launch party for the firm each received a Cartier SA
Cartier SA
Cartier S.A., commonly known as Cartier , is a French luxury jeweler and watch manufacturer. The corporation carries the name of the Cartier family of jewellers whose control ended in 1964 and who were known for numerous pieces including the "Bestiary" , the diamond necklace created for Bhupinder...
crystal apple with gold leaves and stem engraved with a quote from the Wall Street Journal remarking on the formation of the firm, 'A New Legal Powerhouse is Rising.' Though Myerson dreamt of relaunching a legal practice, he was sentenced to 70 months in federal prison for tax fraud and defrauding clients.
Legacy
Myerson & Kuhn in many ways epitomized the excess of the 1980s financial market that percolated into the legal sector transforming it from a staid, white shoeWhite shoe firm
White shoe firm is a phrase used to describe the leading professional services firms in the United States, particularly firms that have been in existence for more than a century and represent Fortune 500 companies...
profession characterized by genteel mostly WASP
White Anglo-Saxon Protestant
White Anglo-Saxon Protestant or WASP is an informal term, often derogatory or disparaging, for a closed group of high-status Americans mostly of British Protestant ancestry. The group supposedly wields disproportionate financial and social power. When it appears in writing, it is usually used to...
attorneys that shunned work such as hostile takeovers and bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
into a dynamic 'business' sector where profitability rather than collegiality was the most salient barometer of success. The 1980s saw a number of old line law firms collapse, including Lord Day & Lord
Lord Day & Lord
Lord Day & Lord was a large, blue-chip New York City law firm. It was established in 1845 by Daniel Lord, his son Daniel De Forest Lord, and his son-in-law Henry Day. The firm had retained the same name until 1988 when it merged with smaller firm Barrett Smith Simon & Armstrong to become Lord Day &...
. Firms such as Myerson & Kuhn and Finley Kumble
Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey
Finley, Kumble, Wagner, Underberg, Manley, Myerson & Casey was a United States law firm founded in 1968. The firm, based in New York, had grown from eight lawyers at its inception to over 700 lawyers at the time of its bankruptcy and dissolution in 1987...
were organized along different models, aggressively pursuing national expansion (and in some cases, international expansion) and plunging into the debt-fueled corporate transactions, including junk bond deals underwritten by Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Today's legal powerhouse, Skadden, Arps, Slate, Meagher & Flom
Skadden, Arps, Slate, Meagher & Flom
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates , founded in 1948, is a prominent law firm based in New York City. With over 2,000 attorneys, it is one of the largest and highest-grossing law firms in the world. Forbes magazine calls Skadden "Wall Street's most powerful law firm"...
emerged at the same period with a reputation for being retained by corporate raiders waging proxy wars and other transactions, including bankruptcy (though it was founded earlier, in 1948). Skadden Arps was also the bankruptcy counsel for Finley Kumble. Latham & Watkins
Latham & Watkins
Latham & Watkins LLP is a global law firm, one of the largest in the world. Latham currently employs approximately 2,000 attorneys in the United States, Europe, the Middle East and Asia. The firm was started in Los Angeles in 1934 and has extensive Californian roots, but its largest office is now...
also aggressively entered the high-yield (junk bond) and leveraged finance legal markets and served as primary outside counsel for Drexel.
See also
- Bowie KuhnBowie KuhnBowie Kent Kuhn was an American lawyer and sports administrator who served as the fifth Commissioner of Major League Baseball from February 4, , to September 30,...
- Finley, Kumble, Wagner, Underberg, Manley, Myerson & CaseyFinley, Kumble, Wagner, Underberg, Manley, Myerson & CaseyFinley, Kumble, Wagner, Underberg, Manley, Myerson & Casey was a United States law firm founded in 1968. The firm, based in New York, had grown from eight lawyers at its inception to over 700 lawyers at the time of its bankruptcy and dissolution in 1987...
- Shea & GouldShea & GouldShea & Gould was one of New York's best-known law firms. It was established as a result of a merger in 1964 between Manning, Hollinger & Shea and Gallup, Climenko & Gould. The firm acquired several smaller niche practices in antitrust and other areas during the 1970s. The firm dissolved in 1994...