TEXAS LAWBOOK’S TOP 50

Research highlights the state’s greatest in litigation and revenue.

Corporate lawyers operating in Texas made a record-smashing amount of money in 2018.

Exclusive new research by The Texas Lawbook shows that the top 50 business law firms with offices in Dallas, Houston and Austin generated just a hair shy of $6 billion in revenues in 2018 — a 6 percent increase from 2017.

The data shows that the Texas offices of 26 corporate law firms — 15 of them headquartered outside of the state — worked more hours and collected more dollars last year than ever before.

Several elite legal practices witnessed huge financial gains last year, while a few large Texas legacy law firms experienced significant economic declines in 2018, according to independent research conducted by The Texas Lawbook.

One global law firm — the richest one in the world, in fact — actually jumped from 11th on the Texas Lawbook Top 50 list in 2017 to fourth in revenue last year and became the first out-of-state firm ever to break into the Top 5.

Three law firms jumped into the Top 50 for the first time, including two national law firms and a Houston litigation boutique, which actually debuts at No. 34.

Merger impacts

Texas-based law firms in The Texas Lawbook Top 50 firms generated more revenue than those headquartered elsewhere, but the margin was thin.

Three large Texas-based corporate firms merged with out-of-state operations in 2018, and all three witnessed significant revenue declines, which leaders at each of those firms expected.

Those three mergers — plus the extraordinary growth of several out-of-state law firms operating in Texas and a handful of national legal practices stealing legal talent from Texas-based firms to open new offices in Houston, Dallas and Austin — meant more and more corporate client legal dollars went to national law firms instead of firms headquartered in the state.

Texas Lawbook data shows that Texas lawyers working the Top 50 law firms generated $5.985 billion in revenues in 2018 — $3.06 billion of it by firms based in Dallas and Houston, which is $400 million less than in 2017. The Texas offices of out-of-state law firms earned $2.924 billion in 2018, which is more than double the amount in 2015.

The Texas Lawbook Top 50 financial results were calculated based on law firm surveys, interviews with law firm leaders and partners and assistance from legal industry consultants.

Law firm leaders in Texas — even those at firms that struggled a bit last year — predict that 2019 could be even more profitable for them.

“We had a really great year in all respects,” said Mark Kelly, chair of Houstonbased Vinson & Elkins. “I’m expecting 2019 to be another record year.”

V&E lawyers in Texas generated an estimated $517 million in 2018 — $33 million more than last year and a whopping $155 million more than any other law firm, according to Texas Lawbook research. While V&E has more lawyers in Texas — 430 — than any other law firm, its lawyers also increased the amount of money each one of them generates to $1.2 million.

Chicago-founded Kirkland & Ellis has experienced unparalleled success since it opened its first Texas office in 2014.

Texas Lawbook research shows that Kirkland now has 199 attorneys in Houston and Dallas and made an astonishing $292 million in revenues in Texas in 2018 — a $105 million increase year over year before and quadruple its revenues from 2015.

“We have been incredibly busy and we are pleased with our growth and success, but we are definitely not satisfied,” said Andrew Calder, who leads Kirkland’s operations in Houston. “We think we still have room to grow in Texas, especially in Dallas.”

Two other Chicago-headquartered law firms — Sidley and Winston & Strawn — also witnessed significant growth in their Texas offices in 2018. Lawyers in the Texas offices of Sidley increased their revenues by 37 percent in 2018 to $165 million. Similarly, Winston lawyers in Dallas and Houston saw the money they made grow from $34 million in 2016 to $116 million in 2017 to $136.8 million last year.

King & Spalding, the old-school Atlanta law firm that counts Coca-Cola and Delta Airlines as clients, continues to post impressive gains in Texas. King & Spalding ranked 15th in total revenues at $133 million — up from $107.7 million in 2016.

Local records

Three large full-service corporate Texas legacy firms — Haynes and Boone, Jackson Walker and Thompson & Knight — joined V&E in achieving record revenues in 2018.

Fifth-ranked Haynes and Boone grew by 6.5 percent to $277.5 million. Revenues for sixth-ranked Jackson Walker increased by 5 percent to $262.9 million. Thompson & Knight, which ranked eighth, reported 2018 revenues of $213.9 million — a 7 percent bump.

Locke Lord, Winstead and Bracewell — three full-service Texas-based firms also ranked in the top 11 — each scored revenue gains in 2018.

“We had an outstanding year,” said Greg Bopp, managing partner of Houston-based Bracewell . “We were very busy in the Permian, where we were involved in more than a dozen midstream infrastructure projects. Our Texas public finance group had an exceptional year — No. 1 in disclosure counsel and No. 2 in bond counsel.

Houston-based Porter Hedges had a record year with $82.1 million in revenues in 2018 — up 10 percent from the year before.

Perhaps the biggest surprise in the 2018 Texas Lawbook Top 50 report is Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing (aka AZA), a Houston litigation boutique, which reported $58 million in revenues in 2018 — a 45 percent increase from 2017.

Baker Botts witnessed its second consecutive year of declining revenues, but it still ranks No. 2 in the state in overall money generated by its lawyers in Texas. Baker Botts had an estimated $362 million in 2018 — down from $379 million in 2017 and $462 million in 2016.

The firm’s new managing partner, John Martin, told The Texas Lawbook that it benefited greatly in 2016 from a large contingency fee payment.

“The numbers for us do not tell the complete story,” Martin said. “We also had some client receivables that we expected to arrive in December but didn’t come in until Jan. 2. That being said, 2019 has started very strong for us and we are bullish on 2019.”

For a longer version of this article, please visit TexasLawbook.net.