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How Trump Is Putting Law Firms in a No-Win Situation
How Trump Is Putting Law Firms in a No-Win Situation

New York Times

time09-04-2025

  • Business
  • New York Times

How Trump Is Putting Law Firms in a No-Win Situation

Willkie Farr & Gallagher last week became the latest law firm to strike a deal with the White House and escape President Trump's wrath. But the firm, which pledged $100 million in legal services to causes that the Trump administration supports, traded one problem for another. Willkie has faced a backlash to the deal in recent days, including within its ranks, as concerns mount over Mr. Trump's broader law firm crackdown. Doug Emhoff, former Vice President Kamala Harris's husband and one of Willkie's most prominent partners, publicly assailed the agreement with Mr. Trump. Congressional Democrats are now demanding information about the deal. And Willkie's longest-serving lawyer, Joseph T. Baio, resigned rather than stay at a firm that gave in to the White House's demands. In an email to the firm's executive committee, Mr. Baio wrote that he had left so he could 'join the fight against governmental tyranny, unconstitutional decrees and social injustice, particularly at this critical time.' The fallout at Willkie, which counted Mr. Trump among its clients decades ago, illustrates the no-win predicament facing law firms caught in Mr. Trump's cross hairs. If they resist, the firms jeopardize their bottom line, exposing themselves to executive orders that, while legally dubious, imperil their businesses. But if they buckle, they are seen by critics as having compromised their integrity, drawing rebukes from across the broader legal community. 'We know this news is not welcomed by some of you, and you would have urged a different course of action,' Willkie's executive committee said in an email to the firm last week explaining the deal. 'Needless to say, this was an incredibly difficult decision for firm leadership.' The negotiations that led to the deal, recounted in interviews with people briefed on the matter, demonstrate Mr. Trump's new strategy for bringing law firms to heel. Mr. Trump's advisers have begun contacting firms before the president issues an executive order — sometimes through a friendly intermediary — to suggest that they sign a deal, or else. Willkie learned in late March that it was potentially next on Mr. Trump's list. The firm's chairman, Thomas M. Cerabino, spoke with Thomas J. Barrack Jr., a Willkie client and longtime friend of Mr. Trump's. Mr. Cerabino then spoke with Boris Epshteyn, Mr. Trump's outside legal adviser, who indicated that it would be best for both sides if a deal was reached, according to people briefed on the matter. Other firms, including Cadwalader, Wickersham & Taft, were recently contacted under similar circumstances. Cadwalader has yet to reach a deal, but several other firms have done so. Soon after Willkie reached a deal, the law firm Milbank did the same, saying later that 'the Trump administration suggested to us that we enter into an agreement similar to one recently agreed to by Skadden,' another large firm that proactively struck a deal. The alternative, those firms concluded, was worse. Over the last month, Mr. Trump targeted several other firms with executive orders that jeopardized their ability to represent government contractors, and limited their access to federal buildings. Those firms, including Perkins Coie and Jenner & Block, are fighting the orders in federal court, where judges have already blocked most of the restrictions. Perkins Coie has disclosed that Mr. Trump's order has taken a financial toll on the firm. And although Willkie's agreement required it make certain concessions, the firm's executive committee said in its statement to employees that an executive order would have imperiled 'our clients' rights and those of our firm.' Karoline Leavitt, the White House press secretary, said in a statement that 'Big Law continues to bend the knee to President Trump because they know they were wrong, and he looks forward to putting their pro bono legal concessions toward implementing his America First agenda.' Mr. Cerabino, the Willkie chairman, did not respond to requests for comment. Mr. Baio, 71, a former Willkie partner and member of the firm's executive committee, said in an interview that he understood the difficult situation. But Mr. Baio, who had been working full time as a senior counsel in Willkie's litigation department, decided he could no longer stay after the deal. So he resigned, leaving the firm after 47 years. Andrew Silberstein, an associate at Willkie, also resigned in protest, lamenting in an email to colleagues that the firm's principles had been 'so deeply compromised,' and that 'they have come for us, and we did not speak out.' Associates at other firms targeted by Mr. Trump have also resigned. Mr. Emhoff has remained at Willkie. But at a charity event last week, he denounced the firm's decision to capitulate to Mr. Trump, according to a person with knowledge of the matter. 'I wanted them to fight a patently unconstitutional potential executive order,' he said at the event. Mr. Emhoff's criticism was reported earlier by CNN. Democratic lawmakers have also expressed concern about the deal. In a letter to Willkie this week, the top Democrats on the Senate Permanent Subcommittee on Investigations and the House Judiciary Committee questioned how the deal came about and raised what they called 'the troubling prospect that the president has successfully and unlawfully coerced' the firm. 'The American people and Congress deserve transparency with respect to the president's ongoing assault on constitutional rights and the rule of law,' Senator Richard Blumenthal of Connecticut and Representative Jamie Raskin of Maryland wrote in the letter. Mr. Blumenthal and Mr. Raskin also sent letters to Skadden and other firms. While the list of firms on Mr. Trump's radar appears arbitrary at times, Willkie was an obvious target, and not only because of Mr. Emhoff. The president's advisers were most focused on the firm employing a former top investigator for the congressional committee that scrutinized Mr. Trump's role in the Jan. 6, 2021, attack on the Capitol, according to a person close to Mr. Trump. They also focused on the fact that the firm's clients included two Georgia election workers who had sued Rudolph W. Giuliani, Mr. Trump's former personal lawyer. Mr. Trump was also once a client. In the late 1980s, when the firm was much smaller, Willkie worked on cases on Mr. Trump's behalf as he built himself into a local player with three casinos in Atlantic City. One of the people who worked closely with Mr. Trump's company at the time was Mr. Cerabino, now the firm's chairman. Decades later, Mr. Cerabino was at the center of the discussions with Mr. Trump's White House. In its internal statement, Willkie's executive committee made oblique references to the discussions with Mr. Barrack and Mr. Epshteyn, without mentioning them by name. The firm, the statement said, was 'invited to contact the administration,' which then 'outlined a proposed alternative to receiving an executive order.' Mr. Barrack, who was nominated as ambassador to Turkey, was represented by Willkie in a criminal trial in 2022, when he was acquitted on charges that he secretly worked as a foreign agent. Mr. Barrack's private equity real estate firm is also a major Willkie client. When Mr. Barrack spoke to Mr. Cerabino in late March, he said that the firm may want to get in touch with Mr. Trump's team, and quickly. The firm's leadership took two paths. At the same time that it prepared to go to court to fight any potential order, it began discussions with Mr. Trump's team, according to a person briefed on the matter. After Mr. Cerabino spoke with Mr. Epshteyn, the firm's leadership conferred in two executive committee meetings, deciding that striking a deal was the most prudent decision. It was announced soon after.

Doug Emhoff publicly criticizes his law firm for coming to agreement with Trump administration
Doug Emhoff publicly criticizes his law firm for coming to agreement with Trump administration

Yahoo

time05-04-2025

  • Politics
  • Yahoo

Doug Emhoff publicly criticizes his law firm for coming to agreement with Trump administration

Speaking at a charity gala dinner Thursday night in Los Angeles, former second gentleman Doug Emhoff condemned the decision by his law firm to preemptively come to an arrangement with the Trump administration to avoid an executive order targeting the firm, sources tell CNN. Emhoff is a partner at Willkie Farr & Gallagher LLP, which this week agreed to a deal with President Donald Trump, which the president said includes the firm providing at least $100 million in pro bono legal services throughout his second term. It's the third example of a high-profile firm cutting a deal with the White House as Trump has targeted firms that have done work with his perceived political enemies. Emhoff told the crowd at the Annual Dinner Gala for the legal aid group Bet Tzedek he had told the firm he wanted to fight the threat of an executive order he found unconstitutional but had been overruled, the sources said. On Tuesday, Trump announced on Truth Social he had come to an agreement with the firm. The agreement, Trump stated, also means the firm 'will not engage in illegal DEI discrimination and preferences' and 'will not deny representation to clients … because of the personal political views of individual lawyers.' The chair of the firm, Thomas M. Cerabino, said that the agreement was 'consistent with our Firm's views on access to Legal representation by clients, including pro bono clients, our commitment to complying with the Law as it relates to our employment practices, and our history of working with clients across a wide spectrum of political viewpoints.' He added that Willkie 'looks forward to having a constructive relationship with the Trump Administration.' Willkie's pro bono work in recent years has been especially attention-grabbing because it included a defamation win against Rudy Giuliani following his work for Trump after the 2020 election. Willkie had provided representation to two Georgia poll workers who a jury ruled had been defamed by Rudy Giuliani, Ruby Freeman and Shaye Moss, awarded a $148 million defamation verdict. CORRECTION: The date of the event where Doug Emhoff spoke has been updated. It was Thursday night.

Doug Emhoff criticizes his law firm for coming to agreement with Trump administraiton
Doug Emhoff criticizes his law firm for coming to agreement with Trump administraiton

CNN

time05-04-2025

  • Politics
  • CNN

Doug Emhoff criticizes his law firm for coming to agreement with Trump administraiton

Speaking at a charity gala dinner Friday night in Los Angeles, former second gentleman Doug Emhoff condemned the decision by his law firm to preemptively come to an arrangement with the Trump administration to avoid an executive order targeting the firm, sources tell CNN. Emhoff is a partner at Willkie Farr & Gallagher LLP, which this week agreed to a deal with President Donald Trump, which the president said includes the firm providing at least $100 million in pro bono legal services throughout his second term. It's the third example of a high-profile firm cutting a deal with the White House as Trump has targeted firms that have done work with his perceived political enemies. Emhoff told the crowd at the Annual Dinner Gala for the legal aid group Bet Tzedek he had told the firm he wanted to fight the threat of an executive order he found unconstitutional but had been overruled, the sources said. On Tuesday, Trump announced on Truth Social he had come to an agreement with the firm. The agreement, Trump stated, also means the firm 'will not engage in illegal DEI discrimination and preferences' and 'will not deny representation to clients … because of the personal political views of individual lawyers.' The chair of the firm, Thomas M. Cerabino, said that the agreement was 'consistent with our Firm's views on access to Legal representation by clients, including pro bono clients, our commitment to complying with the Law as it relates to our employment practices, and our history of working with clients across a wide spectrum of political viewpoints.' He added that Willkie 'looks forward to having a constructive relationship with the Trump Administration.' Willkie's pro bono work in recent years has been especially attention-grabbing because it included a defamation win against Rudy Giuliani following his work for Trump after the 2020 election. Willkie had provided representation to two Georgia poll workers who a jury ruled had been defamed by Rudy Giuliani, Ruby Freeman and Shaye Moss, awarded a $148 million defamation verdict. CNN's Kit Maher, Katelyn Polantz and Jeff Zeleny contributed to this reporting.

Kamala Harris calls out organizations for 'capitulating' to Trump days after Doug Emhoff's law firm cut a deal with the White House
Kamala Harris calls out organizations for 'capitulating' to Trump days after Doug Emhoff's law firm cut a deal with the White House

Yahoo

time04-04-2025

  • Business
  • Yahoo

Kamala Harris calls out organizations for 'capitulating' to Trump days after Doug Emhoff's law firm cut a deal with the White House

Former Vice President Kamala Harris issued a stern rebuke of President Donald Trump. Harris also called out organizations that are cutting deals with the president. She did not name Big Law directly, but it isn't hard to read between the lines. Former Vice President Kamala Harris on Thursday issued a veiled rebuke at Big Law firms that have cut deals with President Donald Trump. "We're seeing people stay quiet," Harris said during a speech before the Leading Women Defined Summit. "We are seeing organizations stay quiet. We are seeing those who are capitulating to clearly to unconstitutional threats." Harris did not call out law firms specifically in denouncing a "sense of fear" that has taken hold. Her comments are sure to raise eyebrows given former Second Gentleman Doug Emhoff's ties to Willkie Farr & Gallagher LLP, among the handful of major firms that have cut deals with the White House. On Tuesday, Willkie became the third major law firm to broker an agreement with the Trump administration lest it face a crippling executive order like Perkins Coie is challenging in federal court. The Los Angeles Times and CNN reported that Emhoff told Willkie leadership that he disagreed with the deal. Emhoff did not respond to Business Insider's request for comment. He retweeted a separate portion of Harris' remarks, where she said, "Courage is contagious." Trump has defended his actions, saying that the firms "are not babies" and went after him "ruthlessly, violently, and illegally." "Those law firms did bad things," he told reporters last month. Trump's claims distort the law firms' actions. His executive order targeting Paul Weiss focused on the firm's rehiring of former federal prosecutor Mark Pomerantz, who left the firm to aid the Manhattan District Attorney's probe into Trump's finances. Trump's memo asking the federal government to reconsider its contracts with Covington & Burling LLP mentioned how the firm had agreed to represent former special counsel Jack Smith, who had led prosecutions into Trump's efforts to overturn the 2020 election and mishandling of classified documents. (Smith later dropped both cases before leaving the Justice Department after Trump's election.) Former President Barack Obama went even further than Harris. During a separate appearance, he said he was "troubled" by the idea the White House could single out individual firms. "Imagine if I had said to law firms that were representing parties that were upset with policies my administration had initiated, that you will not be allowed into government buildings," Obama said during an appearance at Hamilton College in New York. Obama said that institutions should consider standing up, no matter the cost. "If you're a law firm being threatened, you might have to say, okay, we will lose some business because we're going to stand for a principle," he said. "If you are a university, you may have to figure out, are we in fact doing things right?" Read the original article on Business Insider

Obama and Harris publicly rebuke Trump's second term actions
Obama and Harris publicly rebuke Trump's second term actions

Yahoo

time04-04-2025

  • Politics
  • Yahoo

Obama and Harris publicly rebuke Trump's second term actions

Former President Barack Obama and former Vice President Kamala Harris on Thursday each delivered remarks on the state of the country under President Donald Trump's second term and criticized the administration's recent actions. Obama, who preceded Trump's first term, sharply criticized Trump's efforts to reshape the federal government, crackdown on immigration and dissent, and intimidate news outlets and the legal establishment. 'So, this is the first time I've been speaking publicly for a while,' Obama said during an on-stage interview at Hamilton College. 'I've been watching for a little bit.' 'Imagine if I had done any of this,' Obama said, later adding: 'It's unimaginable that the same parties that are silent now would have tolerated behavior like that from me, or a whole bunch of my predecessors.' Obama went on to say that he doesn't think Trump's new tariff announcement 'is going to be good for America.' However, he said that he is more concerned with what he described as the White House's infringement of rights. 'I'm more deeply concerned with a federal government that threatens universities if they don't give up students who are exercising their right to free speech,' Obama told the crowd of college students. 'The idea that a White House can say to law firms, if you represent parties that we don't like, we're going to pull all our business or bar you from representing people effectively. Those kinds of – that kind of behavior is contrary to the basic compact we have as Americans.' Obama had previously warned of the dangers facing the country if Trump were reelected, while campaigning for Harris during the final stretch of the 2024 presidential race. 'Just because (Trump) acts goofy,' the former president said at the time, 'doesn't mean his presidency wouldn't be dangerous.' In separate remarks, Harris on Thursday said Trump's moves since he returned to office were largely predictable. 'There were many things we knew would happen,' Harris said in a video of her remarks at the Leading Women Defined Summit. 'I'm not here to say I told you so,' she added before laughing. Harris said she recognizes that Trump's return to the Oval Office has created 'a great sense of fear.' 'We are seeing organizations stay quiet. We are seeing those who are capitulating to clearly unconstitutional threats. And these are the things that we are witnessing, each day in the last few months in our country and it understandably creates a great sense of fear,' Harris said. Earlier this week, Trump announced a deal with the law firm that employs former second gentleman Doug Emhoff – Willkie Farr & Gallagher – which the president said includes the firm agreeing to provide at least $100 million in pro bono legal services throughout his second term. It was another example of high-profile firms cutting deals with the White House as Trump has targeted firms that have done work with his perceived political enemies. Before the Willkie agreement was announced, Emhoff addressed the matter saying, 'The rule of law is under attack. Democracy is under attack. And so, all of us lawyers need to do what we can to push back on that.' Harris' Thursday remarks, video of which were first reported by MSNBC, are her most direct comments since the start of Trump's second term. The former vice president, who lost to Trump in the November election, went on to say that while fear is 'contagious,' so is courage. 'Fear has a way of being contagious. When one person has fear, it has a way of spreading to those around them and spreading. And we are witnessing that, no doubt,' Harris said at the gathering of female leaders of color. 'But I say this also, my dear friends, courage is also contagious,' she added.

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