There were more partner resignations at Dewey & LeBoeuf on Friday, the latest in a series of defections at the embattled New York law firm.  The current group of 6 lawyers are headed for Sutherland Asbill & Brennan, and their practices focus on insurance regulation and advise on corporate transactions involving insurance companies. In a span of less than 3 months, Dewey & LeBoeuf has lost 37 of its 300 partners (12%) since January - including the 6 today.  Its once-vaunted insurance practice, in particular, has been decimated, having just lost 12 other partners in the group last week. Dewey's well publicized problems resulted in large part after the firm extended multiyear, multimillion-dollar guarantees to many of its top producers.  But the firm missed last year's financial targets, causing the firm to defer or, in some cases, slash compensation. This has prompted many partners to leave.  The situation is likely to worsen,  as large law firms face an uncertain environment amid sluggish overall performance since the financial crisis and mounting pressures on law firm profitability. In addition, corporate clients have struggled as well through the difficult economic climate, forcing them to cut back on the use of outside counsel.  When they do use them, clients demand discounted fees.  A Dewey spokesperson minimized the impact of the recent departures, saying that the firm had expected additional resignations, and that they would not have a material impact on the firm’s finances.  He added:

"These additional departures, while regrettable, we do not believe will change the conclusion that the firm is poised to have a very good economic year.  We have a strong and deep bench as is evidenced by the results our professionals are producing for our clients and the firm."

The recent defections come during a week when Dewey’s leadership held a partners’ meeting, during which they emphasized the firm’s strong financial position and encouraged the firm’s approximately 270 partners to stay.  "We are producing the best work in the history of the firm and producing some of its strongest ever results," Steven Davis, the firm’s chairman, said in a statement.  "The overwhelming majority of our partners are excited about our future." Despite its woes, the 1,100-lawyer firm continues to win business.  Springleaf Financial Services, a unit of the Fortress Investment Group, hired Dewey this week to help restructure its business.  The firm also represented the computer company Dell in its acquisition of SonicWall earlier this month. The Departing Six Lawyers. Leaving for Sutherland are: James Dwyer, managing partner of the Chicago office; John Pruitt and Cynthia Shoss, co-chairs of the insurance regulatory practice; Bruce Wright and Linda Sciutow, tax partners; and, Jeffrey Mace, an insurance partner.   [Dealbook, 3/23/12]