As Jenner & Block Turns 100, the Firm Recalls How It Planted Its Pro Bono

CHICAGOLAWBULLETIN.COM THURSDAY, JANUARY 30, 2014

® Volume 160, No. 22‘We can do both’

As Jenner & Block turns 100, the firm recalls how it planted its pro bono roots

BY ROY STROM Law Bulletin staff writer

he 21-story building at 11 S. TLaSalle St. seems tucked away between its 37-story neighbor across traffic and the 48- flight tower hovering across Madison Street. Looking at it today, you wouldn’t be struck the same way you might have been when it opened 98 years ago. For one thing, the Roanoke Building, as it was known at the time, looked different — it was five stories shorter. Even so, when Chicago’s skyline wasn’t as imposing in 1916, the 16th floor would have provided something of a bird’s-eye view for the 2-year-old Celebrating its 100th anniversary this month, Jenner & Block LLP has built a reputation of law firm that made the penthouse trendsetting pro bono work and handling big-time matters such as General Motors’ IPO and the its first lease: Newman, Poppenhusen & Stern. Lehman Brothers investigation. Standing in the firm’s 353 N. Clark St. office are Chairman Anton R. Flash forward 98 years, travel a Valukas, Managing Partner Susan C. Levy, Joseph P. Gromacki, chair of the firm’s corporate practice, block north of the Chicago River and Philip L. Harris, co-chair of the products liability practice. Ben Speckmann and jog a street east to 353 N. Clark St. bono hours lawyers logged last Communist-paranoid House Un- as Jenner marks its centennial The top floor here, adorned in year — a firm record — and a American Activities Committee. anniversary this month, pillars of marble and featuring a book to tell tradition of government service All the while, the business of the the Chicago institution point to the you about the designers of its that continues today with current firm has plowed ahead. firm’s history of pro bono and furniture, says a lot about how and former Jenner partners such Fueled by the bulk of the firm government service as the corner- time and business have treated as U.S. Solicitor General Donald B. that operates as one of the nation’s stone of its reputation. that same firm, which this month Verrilli, Jr. and Thomas J. Perrelli, top litigation shops — often hired What is a culture? celebrates its 100-year anniversary who rejoined the firm in 2012 after to dig into the most complex cases Jenner is an anomaly among the under its 10th name, Jenner & a three-year stint as U.S. associate and investigations, highlighted by nation’s most prestigious firms in Block LLP. attorney general. the 2008 Lehman Brothers bank- at least two important ways. The outsize role Jenner has Lawyers who have made a living ruptcy — the firm recently had a For one, its reputation outpaces played in changing the city outside at the firm have also prosecuted four-year stretch where it its footprint. Rather than feeling these 45th-floor windows also goes governors. They’ve unearthed one increased its revenue per partner compelled to cover every corner of a long way toward substantiating of the most sweeping cases of more than any of the nation’s 100 the country, 274 of its 450 lawyers its record as one of the earliest judicial corruption in the nation’s largest firms, according to reside in one office in Chicago. The firms to commit to the idea that, history (Operation Greylord) and industry publications. rest are located in three places — for all the rewards the law can helped land re-sentencings for That is supplemented by a New York, Los Angeles and bestow upon its best practitioners, more than 350 death-row inmates transactional practice the firm Washington, D.C. those same lawyers owe a portion with a single U.S. Supreme Court hopes to grow after grabbing And despite its relatively lean of their time and skill to the victory (Witherspoon v. Illinois) headlines for big-time deals such figure, it flexes one of the strongest community. before contributing to the research as guiding General Motors Corp. pro bono muscles. And that’s an ethos the firm’s and advocacy that led to Illinois through its bankruptcy and initial In 2012, its 161 hours of pro bono leaders say it will not forget. abolishing the death penalty in public offering. work per attorney were the most They point to the 79,500 pro 2011. They even helped end the In the first of a two-part series among firms who reported to

Copyright © 2014 Law Bulletin Publishing Company. All rights reserved. Reprinted with permission from Law Bulletin Publishing Company. industry publications, said Jeff breakdown of their hours billed to Koppy, chair of the firm’s pro bono clients and those spent on free WHEN CHICAGO’S 10 committee. The next closest firm matters. LARGEST LAW FIRMS reported 144 pro bono hours per At the meeting, Sullivan said, attorney, and only 12 other firms Thompson asked Leon “Bud” GOT THEIR START posted any number greater than Fieldman, an eventual managing 100. partner, how many pro bono hours • Winston & Strawn — 1853 “This firm really stands for he had worked. • Mayer, Brown — 1863 something,” said managing partner “Judge, I haven’t done any pro • Schiff, Hardin — 1864 Susan C. Levy. “And the pro bono bono hours. I have been working • Sidley, Austin — 1866 legacy — we were doing pro bono on my cases,” Sullivan said • Kirkland & Ellis — 1909 cases back in the 1950s when Feldman responded. • Jenner & Block — 1914 people didn’t even think that was That line of inquiry repeated • Hinshaw & Culbertson — something major firms did.” itself with a few other lawyers until 1934 How do you get several hundred Thompson grew frustrated, • McDermott, Will & Emery lawyers to agree that it’s a good pounding on the table, as Sullivan — 1934 idea to focus on free work while recently re-enacted in an interview. • Seyfarth, Shaw — 1945 under the pressure of billable-hour “Damn it!” Sullivan said, chan- • Katten, Muchin, Rosenman quotas? neling Thompson. “I want people In part, the firm, like others, Thomas P. Sullivan working these pro bono cases! — 1974 makes the two practice aspects Look at Prentice. Look at the way one and the same. But its leaders representing indigent criminals in Prentice and Tom and Jerry are Maintaining a legacy can take cues from their own 1952, a time when the local public doing it. They’re doing both. We Partner Robert L. Byman joined history — when there was no such defender’s office numbered about can do both!” Jenner in 1970 when it had about thing as pro bono credit. 10 attorneys. More than pro bono 50 lawyers. When he was inter- ‘Flotsam and jetsam’ When Sullivan joined the firm in That attitude propelled an viewing for jobs, he asked firms if One of the best sources to ask 1954, Marshall recruited him to original cadre of lawyers to he could do pro bono work. Most about the history of the firm and join the effort. The two became represent clients in plenty of the looked at him askance. its pro bono work is Thomas P. friends through their work on high-profile matters that bolster “At Jenner, it was essentially, ‘If Sullivan, a partner and former U.S. those cases and their train rides to the firm’s reputation, such as the you don’t do pro bono work, you’re attorney for the Northern District and from the office — Sullivan U.S. Supreme Court victory it in trouble here,’” Byman said. “We of Illinois. being from Glen Ellyn, Marshall earned in the case of William expect you to do pro bono work.” At 83 years old and with roughly from Wheaton. Witherspoon. Byman did his share, too: 55 years of total time spent at “My first case alone I had to That dispute led to about 350 Securing the release of one of the Jenner, he is both the oldest watch Ed Egan, (who) was the death-row inmates receiving re- “Ford Heights Four,” Dennis partner and the longest-tenured. prosecutor. It was like being in the sentencing after Jenner lawyers Williams, after he served 18 years Chairman Anton R. Valukas front row at church — you didn’t successfully argued that the on death row as a result of a joked that Sullivan’s commitment know whether to stand up or exclusion of jurors who were wrongful conviction. He also won a to pro bono almost bankrupted the kneel,” Sullivan said. opposed to the death penalty was reversal and the release of David firm, noting in particular his and The pro bono matters also unconstitutional. Dowaliby after his conviction for others’ 10-year investment in the enhanced his and others’ appellate In addition to those pro bono the murder of his daughter. Contract Buyers League case — a court skills. matters, there is a long list of “I’ve had the privilege and the class-action litigation to stop unfair He would appeal the cases he investigations Jenner lawyers have great fun of walking two innocent lending practices and evictions of lost (which happened often, he conducted as part of a separate men out of prison who had been black families on the South and said), and at the time, criminal but similar tradition of government convicted of murder,” Byman said. West sides. appeals went directly to the Illinois and judicial service, as well as “There’s no better feeling in the “Tom gets into a case, and he’s Supreme Court. high-profile investigations. world than walking an innocent into a case,” Valukas said. “It “On a personal level, it provided Bert Jenner was appointed chief guy out of a wrongful conviction.” doesn’t matter if that’s a paying an opportunity to get trial experi- special counsel to the minority of With the advent of published client or not a paying client. And ence,” Sullivan said. the U.S. House of Representatives pro bono hours, law firms have that’s true of a large number of “But once you got into it, you Judiciary Committee inquiring into begun to compete, to some extent, people here. The Contract Buyers realized that these people needed the impeachment of President on their pro bono record. League case went on forever. But help. They didn’t have any money. Richard Nixon. That wasn’t the case when that’s the way we try cases.” A lot of them were guilty of what When Nixon realized Jenner Sullivan started representing Ask Sullivan where the dedica- they were charged with but really was interested in the truth, indigents in 1954. Back then, it was tion to pro bono work comes from needed assistance. They were the according to the firm, Nixon a group of friends who were — or to whom the credit goes — flotsam and jetsam of the criminal procured his removal. Democrats learning about the courtroom and and he will point first to Albert justice system — still are, for that then appointed Jenner their felt defending indigent criminals “Bert” E. Jenner, Jr. and then to matter.” deputy counsel. was the right thing to do. Prentice Marshall, a longtime A motto that still applies Locally, one of the most recog- The firm’s continued emphasis partner and former U.S. District By 1957 — with pro bono hours nizable examples is Operation on pro bono can be traced in large Court judge. now being racked up by eventual Greylord, an undercover investiga- part, the lawyers said, back to its “He was the leading Illinois chairman Jerold S. Solovy and tion into Cook County Circuit legacy. litigator for many years, and he others — “screwing around” with Court corruption that occurred It’s also an example of how to a had absolute devotion to repre- free representation of criminals when, in the early 1980s, Charles B. develop a culture: Find a group of senting indigents,” Sullivan said of attracted the attention of Floyd Sklarsky, now co-chair of the firm’s people who, one by one, are willing Jenner, who in 1947 was the Thompson, a former Illinois white collar defense and investiga- to make the same commitments — youngest president of the Illinois Supreme Court justice who was tions practice, was assistant U.S. in this case, to “do both.” State Bar Association, at age 40. then head of the firm. attorney and Sullivan was the U.S. “I’ll never forget that day,” “He supported us all the way. Thompson told the firm’s associ- attorney. Sullivan said, recalling Thompson’s Because, basically, you’re supposed ates that he wanted to speak to By the time Valukas finished his exhorts to work on pro bono to earn money for the firm, not them. Marshall told Sullivan the four-year stint as U.S. attorney in matters as well as for paying screw around with robbers and chat was about their “high pro 1989, about 90 people — including clients. “Prentice had it figured rapists out in criminal court. So bono hours,” Sullivan said. Cook County judges, lawyers, out. Not only had we worked on the credit really should go to Bert So before the meeting, Marshall, sheriff deputies, police officers and pro bono, we had worked on Jenner and Prentice to start this.” Sullivan, Solovy and possibly court clerks — were convicted on paying matters more than most Marshall, Sullivan said, began others gave Thompson a charges of conspiracy and bribery. people.”

Volume 160, No. 23 Jenner’s future and a bet on a 100-year past

How one of the city’s most prominent firms balances big business with core principles

BY ROY STROM Law Bulletin staff writer

As Anton R. Valukas looked around the room — and as those assembled stared back at him — he guessed time was passing at the rate of about $125,000 an hour. Standing in a conference room of the white-shoe New York law firm of Weil, Gotshal & Manges, the Jenner & Block LLP chairman presented his strategy as the court-appointed examiner for the Lehman Brothers bankruptcy that sparked the financial crisis in 2008. Name a firm in New York, he said, and at least one of its leading lawyers was there — likely billing around $1,000 an hour. “My job is not to put a pelt on Jenner & Block LLP has developed a nationally lauded litigation practice in the 100 years since the the wall and find a villain,” Valukas told the attorneys, gathered to find firm was founded by three corporate attorneys. It is now growing its corporate practice, and the out how this Chicagoan’s investiga- firm’s leaders believe that its civic-minded culture will be one of its biggest advantages in an tion would affect their clients, the increasingly difficult marketplace. Bookended by co-chairs of the firm’s litigation department, world’s largest financial institu- Craig C. Martin (far left) and David J. Bradford (far right), are partners Thomas P. Sullivan and tions and their executives. Barbara S. Steiner. Ben Speckmann “My job is to try and find out what took place. … And if there are recent parts of the past century. line results more than ever before. system that rewards pointing out no villains, there are no villains.” The firm reported $387.5 million To some degree, the firm’s the work your partners have done. For a law firm founded 100 years in 2012 revenue, according to a investment in a values-oriented Instead of focusing strictly on ago this month by three partners Chicago Lawyer magazine survey. culture — centered on the pro profit, which some say has led to who did effectively no trial work, Over a four-year stretch that bono work detailed Thursday in the demise of firms, Valukas said Jenner & Block had come a long included the depths of the the first part of this series — can promoting longstanding values is way to earn the investigation of the recession, industry publications be seen in direct competition with one of Jenner’s biggest advantages biggest bankruptcy in history, said, Jenner reported more growth its bottom line. in 2014 and beyond. considering Lehman’s $691 billion in revenue per lawyer than any of Consider the so-called “Jenner The firm’s current strategy in assets when it went belly-up. the nation’s 100 largest firms. tax.” The “tens of millions of includes growing its corporate The 2,200-page Lehman report That was partially due to its dollars” Valukas said the firm practice, developing offices outside — which the bankruptcy judge work on the Lehman case and spends on pro bono work comes of its 274-lawyer Chicago presence called “one of the most extraordi- high-profile transactional work, “right off the top” of partner and eyeing the first international nary pieces of work product I have dipping General Motors Corp. into compensation — a metric often outpost for the 450-attorney firm. ever encountered” — is a and out of bankruptcy and then viewed as the best indicator of a “I think that there’s a new testament, Jenner lawyers said, to handing it off to public ownership. law firm’s firepower in what has reality in terms of how fast firms the firm’s first-class litigation chops. That figure, though, was also increasingly become a talent war will grow and what compensation But it represented more than boosted by a large reduction in for lateral partners. will be, which is not bad,” Valukas that. headcount and equity partners, a Firm leaders view it differently. said. With the $50 million-plus in fees business tactic that some legal The Jenner tax is a recognition “But my view of it is, what holds the assignment garnered — commentators say is representa- by the people who join the firm a really superb firm together? If including roughly 10 percent of the tive of both a more competitive that they are committed to the the only thing that holds you firm’s revenue in 2009, according to marketplace and a law firm firm’s culture and are even willing together is money, then you better news reports — it is also indicative mindset that has shifted from to pay for its benefits, which have nothing but great years. of the big business that Jenner and viewing the practice of law as a Valukas said include “no sharp Because otherwise, everybody goes the law have become in the most profession to a focus on bottom- elbows” and a compensation buh-bye. Those that can, will go.”

Copyright © 2014 Law Bulletin Publishing Company. All rights reserved. Reprinted with permission from Law Bulletin Publishing Company. A litigation shop is born “I think everybody on (Sidley’s) importance to the firm: General considered a cast of villains. Newman, Poppenhusen & Stern trial team had clerked on the Motors Corp. In the 2,200-page report that commenced its partnership on Jan. United States Supreme Court,” As evidence that the corporate Jenner produced in 2010, with 1, 1914. Byman said. “These were brilliant, practice continues to expand, roughly a fifth of the firm working Its formation was the result of great lawyers. Gromacki pointed to Honeywell on the file at various times, bosses the typical kinds of creative “But not a single one of them International Inc., a longtime litiga- at the investment bank were destruction among law firms. had ever tried a jury case before. tion client at the firm that he said labeled “at least grossly negligent.” Jacob Newman’s previous firm On our team, everybody had tried now is more of a transactional Accounting tricks to hide tens of disbanded after a partner’s death. jury cases, mostly because they client. billions of dollars were called Two of Harry L. Stern’s former had taken pro bono cases down at The group has roughly doubled “materially misleading.” partners created their own firm, 26th and California. And we killed in size from when Gromacki Before the firm filed the report, capitalizing on their reputation them in that trial.” arrived, and it continues to grow Valukas said he knew the stakes. after a windfall fee reorganizing AT&T’s monopoly was eventu- through lateral hires that recently He had seen the players gathered Westinghouse Airbrake Co. ally broken as a result of the long- have included G. Thomas for his speech in the Weil confer- The firm’s reputation as a haven running, multi-trial case. Stromberg, a former member of ence room. He had been in the for trial lawyers is well known “Those are the sort of things Kaye, Scholer LLP’s management bankruptcy court so crowded with today, but none of the three that Jenner has always been committee; Uri Doron, a well- lawyers that a live video of the founders even had a pending case willing to undertake,” Valukas said. known M&A partner in New York; proceedings played in a second in court, according to a book “Is this a good case? Yes. Do we and Mark A. Harris, co-chair of the courtroom. written by Edward R. Johnston, a have the trial lawyers to go try it? private equity, investment funds “I told the team … every single junior partner at Conrad Damn straight. Let’s give it a shot. practice who joined from word and every single sentence Poppenhusen’s old firm who joined Let’s try that case.” McDermott, Will & Emery LLP. and every single paragraph is “to do substantially all of the trial going to be scrutinized by the best work of the new firm” that later lawyers in the world,” Valukas said. became Jenner. “On our team, everybody had tried jury “And when we got it done and we Nine years later, Johnston looked back at it, I … remember earned what the firm considers cases, mostly because they had taken pro thinking ‘God, I hope we got it all one of its first major litigation right.’ We’re going to find out soon victories — an antitrust case bono cases down at 26th and California. enough.” against the government, Maple And we killed them in that trial.” Despite regulators and authori- Flooring Manufacturers Association ties failing to make the cases its v. U.S. — that allowed for trade evidence said were warranted, association members to exchange Growing its original practice “They all commented that Jenner’s report withstood the information. With 14 fellows in the esteemed Jenner represents a real unique scouring of the country’s top In the 1950s and ’60s, the firm American College of Trial environment,” said Gromacki, who lawyers. bolstered its litigation reputation Lawyers, Jenner’s nearly 350- was involved in the lateral hiring It’s an open question whether in Chicago, thanks in large part to lawyer litigation practice, co- process. “The focus on values. The those same attorneys — or at least its pro bono court representation chaired by Craig C. Martin and focus on collegiality. The focus on the ones Jenner targets for and other civic-minded cases. David J. Bradford, is firmly collaboration. The clear sense of expansion — will see Jenner’s But it was a 1974 case that entrenched. strategic vision are all things that business model and values-focused showed the kind of impact the The appointment this month of attracted them as laterals to the orientation just as unassailable. Chicago firm could have on a the partner and former lead prose- firm. And they’re some of the same To be sure, Jenner is managed national scale — thanks to some of cutor in former Gov. Rod things that attracted me a decade like a business. Johnston’s old-school wisdom. Blagojevich’s corruption trials — earlier. That can be seen via the As Valukas tells it, MCI Reid J. Schar — as special counsel “And I really do think that percentage of equity partners — Communications was looking for a to the probe of New Jersey’s mindset, that environment, differ- which dropped from 40.9 percent law firm to take on an antitrust bridge-closing scandal is evidence entiates Jenner from a lot of other in 2002 to 25.5 percent in 2012 — a case where it would seek redress the practice remains well-regarded firms. And it’s probably what’s development that contributed to for AT&T’s attempts to prevent it nationally. accounted for our great success raising profits per partner almost from entering the long-distance While firm leaders say one of over the course of a century. And I 155 percent, the third-highest in telephone business. the most important tasks to think it is the building block for the that time span among the top 100 For a number of reasons — remain competitive is to attract future.” firms, according to The American perhaps AT&T’s influence as the the best quality litigators, they also The firm’s latest expansion Lawyer. largest corporation in the world at have a continued focus on devel- venture has occurred in Los “The practice of law is more the time, or the partial contingency oping the corporate practice. Angeles, where the firm opened an challenging. There’s a lot more fee on which MCI was asking firms That began roughly 10 years ago, office five years ago. Today, the competition,” Managing Partner to represent it under — law firms when Jenner attracted Kirkland & office has 37 attorneys, 13 of which Susan C. Levy said. “And all of were turning down the case. Ellis LLP lawyers Robert S. were hired through a summer these firms, including Jenner & That changed after Johnston, Osborne, Elmer W. Johnson and associate program that Rick Block, have to be run like a the firm’s longtime antitrust Joseph P. Gromacki. Richmond, the LA managing business. And so we strive to do all lawyer, took a look at it. Gromacki, who now leads the partner, pointed to as evidence of that while adhering to our own “He studied the matter, came roughly 50-lawyer practice, said he that the firm’s brand stretches past values.” back, met with the entire partner- was drawn by the mandate to Chicago. Jenner’s plan to continue its ship and said ‘This is a good case; develop the corporate group to be The firm has also attracted focus on pro bono and a values- this is a good antitrust case,’” “commensurate in reputation and lateral partners including Richard oriented culture is ultimately a bet Valukas said. “And that’s how we quality with the firm’s litigation L. Stone, co-chair of the content, that the next generation of lawyers undertook the MCI case.” practice.” media and entertainment practice. will find appeal in those aspects of At the trial, Jenner squared off There was another attraction. “Two of the three of our first the profession, even with the with lawyers from Sidley, Austin “The values-oriented culture of summer associate hires were vale- increased pressure on the law firm LLP. In an example of one of the this firm,” Gromacki said. “The dictorians,” Richmond said. “We’ve business model. benefits from the firm’s early pro notion that law is a profession, had a summer program every Valukas said he’s confident there bono work, partner Robert L. maybe even a noble profession summer. We’ve spent a tremen- are enough litigators and deal- Byman said, everyone on its trial where we have some obligation to dous amount of time and energy to makers who view the Jenner tax as team — even the lowliest associ- contribute with our skills back to get the best possible people.” a worthwhile investment. ates — had spent time in the the community from which we Making a bet “That’s true. And there are. And courtroom. come.” At the end of the Lehman they do,” Valukas said. “And we’ve Not so for Sidley’s group, Byman With those lawyers came a investigation, Valukas and his been lucky enough to have a lot of said. client that has only grown in team found what could be them here.”