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A general view of Lower Manhattan post Superstorm Sandy. REUTERS Gary Hershorn

Post-Sandy, small law firms struggle to regain footing

11/6/2012 COMMENTS (0)

By Casey Sullivan 

Nov 6 (Reuters) - Solo practitioners and small law firms in lower Manhattan said they were having more difficulty resuming normal operations in the wake of superstorm Sandy than many of their big law colleagues.

Small firms typically don't have satellite offices and sometimes don't have off-site Internet servers, which can make it difficult to work remotely and can create problems ranging from document retrieval to staff morale.

The Law Office of Victoria Wickman, a three-attorney medical malpractice firm in the Financial District, has been hampered by the shutdown of a handful of New York hospitals that lost power during the storm.

At least 15 of the firm's medical malpractice lawsuits have been delayed, since hospitals cannot provide requested medical records, according to Anthony Ferrantelli, a lawyer with the firm.

New York University Langone Medical Center, on First Avenue and 33rd Street, and Bellevue Hospital, at First Avenue and 26th Street, remained closed as of Tuesday afternoon.

The Wickman firm had to file for several court extensions because lawyers working from home didn't have access to work email or phone lines, Ferrantelli said. "It was a severe setback," he said.

Golub & Golub, a six-lawyer boutique specializing in distressed debt and corporate transactions, also had to delay transactions because of Sandy. Though the firm has an off-site data retrieval system, lawyers couldn't access documents necessary to close deals because firm headquarters were shut down, said managing partner Steven Golub.

Other small law firms had issues unrelated to power. Adam Leitman Bailey has a 27-attorney real estate boutique near Wall Street. He said he kept the firm running the Monday Sandy struck so lawyers would be available to help landlords who had issues during the storm. The decision, however, caused morale issues with the staff that Bailey said he now has to repair.

"Our employees do not understand why I would put them allegedly in harm's way on a Monday," he said, noting that he paid roughly $10,000 to contract a car service to transport lawyers from the office to their homes.

Anna Valentini, a solo practitioner who specializes in immigration issues, wasn't able to work out of her office for the past week and had to repurchase her phone and Internet service after they were knocked out. Still, she has not had any calls from potential new clients since the storm struck.

"If you're a solo attorney working with people with modest means, it's actually a hard hit," said Valentini, who spent between $300 and $400 on communications and other storm-related expenses in the last week. "I'm worried about the survival of my law firm."

Meanwhile, many large and mid-size New York law firms said conditions were getting better by the day.

The downtown Manhattan office of Harris Beach, a 200-lawyer firm, was closed on Monday, but the firm relocated some lawyers to its White Plains and Long Island outposts, according to firm member Cynthia Antonucci. Between 50 and 80 lawyers working from home were provided laptops by the firm's IT department in Rochester, said Antonucci.

After a week working out of a temporary space in midtown Manhattan, lawyers from Sullivan & Cromwell should begin transitioning lawyers back to headquarters at 125 Broad Street Nov. 12, said Chairman Joe Shenker.

Meanwhile, Milbank, Tweed, Hadley & McCloy, whose main office is at One Chase Manhattan Plaza, reopened on Monday, albeit without heat. Lawyers were allowed to wear jeans and sweaters to work to keep warm, according to Chairman Mel Immergut. 

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