The leader of the prestigious New York law firm that faced backlash for a recently made agreement with President Trump stated on Sunday that the deal was necessary for the firm’s survival against potential drawn-out legal battles with the Trump administration.
Brad Karp, managing partner at Paul, Weiss, indicated in an email to the firm’s attorneys that they had initially planned to contest an executive order signed by Mr. Trump, which significantly hindered the firm’s capacity to represent its clients.
However, Karp noted that clients were extremely concerned that even if Paul, Weiss prevailed in court, the firm would still be regarded as “persona non grata” by the administration. He asserted that this perception could lead clients to shift their business to competing firms, potentially jeopardizing the future of Paul, Weiss.
Officially named Paul, Weiss, Rifkind, Wharton & Garrison LLP, the firm operates globally. Its practice areas encompass mergers and acquisitions, private equity, white-collar criminal defense, and litigation, serving high-profile clients such as ExxonMobil, Citigroup, Imagine Entertainment, and Lucasfilm.
Some attorneys at Mr. Karp’s firm, particularly those in litigation, advocated for a court challenge against the order, believing that a judge would swiftly overturn Mr. Trump’s executive decision. Meanwhile, corporate attorneys, who represent a major source of the firm’s income, insisted that Mr. Karp negotiate a deal to prevent client attrition.
In his email, Karp stated that even if a judge suspended Mr. Trump’s order, clients would remain anxious about being seen as opposed to the administration, making it difficult for them to continue their relationship with Paul, Weiss.
Karp’s statements highlighted the significant impact of Mr. Trump’s executive actions on law firms in recent weeks, illustrating that even judicial interventions might not protect firms from being sidelined if they did not comply with the administration’s demands.
“We initially planned to contest the executive order in court, and a team of Paul, Weiss attorneys drafted a lawsuit following the esteemed traditions of our firm,” Karp detailed in his email. “However, it became evident that, even if we succeeded in obtaining a temporary injunction against the executive order, it wouldn’t resolve the core issue: clients viewed our firm as persona non grata with the administration.”
Karp acknowledged that while the firm could halt the order’s implementation, “we couldn’t erase it.”
“Clients informed us that they were unable to remain with us, despite their desire to do so,” Karp noted in his email. “It was highly probable that our firm wouldn’t endure a protracted conflict with the administration.”
Last week, Mr. Trump signed an executive order that effectively prohibited Paul, Weiss’s attorneys from accessing federal buildings and engaging with the government. The order also warned that companies associated with Paul, Weiss could risk losing their government contracts.
On Wednesday, Mr. Karp met with Mr. Trump in the Oval Office, and the following day, the president announced that Paul, Weiss had agreed to represent clients irrespective of their political opinions and would allocate $40 million toward pro bono legal efforts for issues Mr. Trump supports, such as combating antisemitism and aiding veterans.
After the deal was publicized, Mr. Karp — a well-known Democratic donor who previously aimed to rally the legal community against Mr. Trump during his first term and supported his Democratic rival, Kamala Harris — faced significant backlash for yielding to Mr. Trump and putting other firms at risk.
Mr. Karp asserted in the email that the agreement “was undeniably in the best interests of our clients.” He mentioned that thousands of the firm’s clients felt relieved by the resolution and appreciated that, as the president acknowledged, their firm now enjoys a proactive and positive relationship with the administration.
“Even those who have expressed personal disappointment that we didn’t oppose the administration have acknowledged the significant stakes for our law firm and respect our decision,” Mr. Karp conveyed in his email.
