Defense Digest

Notes From The Executive Committee

On December 12, 2004, Marshall, Dennehey, Warner, Coleman & Goggin held its annual shareholder meeting. It was the last shareholder meeting that Bob Coleman would chair in his capacity as Chairman and Chief Executive Officer of the firm. On that night, Bob noted that he had been the firm's managing partner since the mid-1970s before becoming the Chairman and Chief Executive Officer in 1984. Consequently, the firm had not seen many transitions, and for those reasons, this transition was most important.

Under his leadership, Marshall Dennehey grew from seven attorneys in one office to over 360 lawyers in 17 offices. During his tenure, the firm established a national reputation in representing defendants in civil litigation. The firm also adopted Bob's business model, which was to specialize in civil litigation, to do no plaintiff's work, and to limit its subrogation practice to the greatest extent possible. During Bob's tenure, the firm decided that its future required it to invest significantly in technology, and it did so without hesitation. Finally, under Bob's watch, the firm embraced a number of lateral partners who had concluded that their former law firms either lacked the size needed to compete in today's legal market or were not as committed to the defense of civil litigation matters as is Marshall Dennehey.

Bob Coleman established a business model at Marshall Dennehey consisting of four basic principles. First, that the firm have strong centralized management. Bob was one of the first managers at an insurance defense firm in the northeastern United States to dedicate his time entirely to the management of a law firm. At Marshall Dennehey during Bob's tenure, consensus was sought, but decisions were generally made by a three-person executive committee.

Second, the firm made it a practice to institutionalize clients so that they are clients of the firm and not of individual lawyers. While the firm respects the decision of its clients to select the lawyers with whom they wish to work, Marshall Dennehey is loathe to permit lawyers to create separate fiefdoms under one roof to compete for work with one another. To the contrary, the firm encourages its lawyers to share opportunities with one another. As a result, factors such as expertise, experience, location, and efficiency are significant considerations in deciding how best to partner a lawyer with a particular client or legal matter.

Third, under Bob's tenure, Marshall Dennehey was particularly adept at retaining mid-level and senior-level lawyers and support personnel. Simply put, the vast majority of senior lawyers who come to Marshall Dennehey do not leave. In addition, the administrative management staff at the firm is comprised of committed people, most of whom have been at the firm ten or more years, and many actually started at the firm straight out of high school.

Finally, under Bob's tutelage, the firm grew, becoming regional, rather than local, which significantly increased its ability to attract business and to service its clients on a larger and more efficient scale.

When Bob turned 60, he began to focus on a transition plan. As a first step, the firm established three practice groups: Professional Liability, Casualty Liability, and Workers' Compensation. Phil Toran became Chair of the Professional Liability Practice Group, I became Chair of the Casualty Practice Group, and Pete Miller became Chair of the Workers' Compensation Practice Group.

Those changes were institutionalized over the next two years, and Bob Coleman then turned his attention to establishing the management team which would succeed him. On December 7, 2003, Bob announced that upon his retirement, Phil Toran would serve as Chairman of the firm's Executive Committee, Peter Miller would serve as Chairman of the Board of Directors and Chief Operating Officer, and I would serve as the firm's President and Chief Executive Officer. On December 31, 2004, Bob Coleman retired from his position as Chairman and CEO, and Phil, Pete, and I assumed those responsibilities.

Together, Phil, Pete, and I share a commitment to carrying out the vision of Bob Coleman. We are honored that our fellow shareholders have asked us to assume that responsibility. We will continue to make changes at Marshall Dennehey to broaden and strengthen the range of services that we are able to provide to our clients. Specifically:

Perhaps the most important commitment that Phil, Pete, and I can make to you, our clients, is to increasingly raise the bar in terms of the service we provide to you while, at the same time, maintaining a firm culture that affords its employees opportunity, stability, and respect.

Phil, Pete, and I recognize that some change is inevitable because the business of the law, the letter of the law, the people with whom we work, and the clients for whom we work will change. However, we firmly believe that change can be managed; that change, while sometimes intimidating, is necessary; and that change brings with it increased opportunity. Change here at Marshall Dennehey will be measured and it will be strategic. What will not change is Marshall, Dennehey, Warner, Coleman & Goggin's commitment to its clients.

Bob Coleman prided himself on being accessible to all of our clients. Phil, Pete, and I are similarly accessible. Phil's direct dial number is 215-575-2813; Pete Miller's direct dial number is 215-575-2610; and I can be reached at 215-575-2748. Please feel free to contact any one of us at any time to discuss any issue of importance to you. We view all of our relationships with our clients as long-term relationships, and we will always be interested in discussing any aspect of the law or this law firm with you.