Paul Weiss: When Big Law Drama Meets Beltway Politics

Ben Thomson, LawFuel contributing editor

If you ever thought the legal world was all about dusty tomes and somber faces, the latest exodus from Paul Weiss might make you think again as four of the firm’s top partners—Karen Dunn, Bill Isaacson, Jeannie Rhee, and Jessica Phillips—decide to pack their briefcases and set off to start their own law firm.

Earlier this year, Paul Weiss found itself in the political crosshairs after President Trump signed an executive order targeting the firm for its ties to lawyers who had previosly investigated Trump, as well as its commitment to diversity, equity, and inclusion (DEI) initiatives.

The order threatened to revoke security clearances, cut off federal contracts, and, in true reality-TV fashion, banish Paul Weiss lawyers from government buildings.

Rather than go toe-to-toe in court like some of their rivals, Paul Weiss negotiated a deal: $40 million in pro bono legal services for Trump-approved causes, a promise to review hiring practices, and, reportedly, a step back from DEI programs.

In exchange, the executive order was rescinded. Crisis averted? Not quite.

The move was one that shocked many in the firm as well as many in the legal world, with critics accusing Paul Weiss of capitulating to political pressure.

Earlier this year Paul Weiss’s pro bono chief Steven Banks resigned from the firm. The 150 year old law firm, which has very strong Democrat connections, has continued to reverberate from the Trump deal, highlighted moreso now with the recent departures.

Meet the Departing Dream Team

Karen Dunn: If you’ve watched a Democratic debate in the last decade, odds are Dunn was behind the scenes, prepping candidates from Kamala Harris to Hillary Clinton. She’s also led courtroom battles for Alphabet, Apple, Uber, and Amazon, and took on the alt-right in the Charlottesville “Unite the Right” case. She was also, of course, a LawFuel Law Star.

Jeannie Rhee: Former Justice Department official, Hillary Clinton’s defender in the email saga, and a key member of Robert Mueller’s special counsel team investigating Russian election interference. Basically, if your legal drama needs a plot twist, Rhee’s your go-to.

Bill Isaacson: A star in antitrust litigation, Isaacson’s been named “Litigator of the Year” and has wrangled with the biggest tech companies around. He’s the legal world’s equivalent of a heavyweight champ—minus the boxing gloves.

Jessica Phillips: Former clerk for Justice Alito and a courtroom mainstay for tech giants, Phillips rounds out the group with a résumé that would make even the most seasoned litigator do a double take.

Why Did They Leave?

While the departing partners’ farewell emails were all warmth and gratitude the timing is, as they say in the movies, “highly suspicious.”

The mass exit comes just weeks after the Trump deal, which many in the legal world saw as a bridge too far. For lawyers who’ve built careers on defending democracy, civil rights, and the independence of the legal profession, the optics of bowing to political pressure were less than ideal.

As one observer put it, Paul Weiss’s deal was “cowardly,” sending a “horrible message” about the independence of Big Law. It’s as if the firm chose to play chess with the White House and ended up sacrificing its queen.

Paul Weiss’s leadership tried to put a positive spin on things, wishing the departing partners well and expressing gratitude for their contributions.

But let’s be real: losing four rainmakers—each with their own star power and client list—is like the Beatles losing Lennon, McCartney, Harrison, and Starr in one go. The firm’s reputation, especially among progressive clients and associates, has taken a hit.

Meanwhile, other Big Law firms have chosen a different path, taking the Trump administration to court over similar executive orders—and winning.

Judges have already struck down orders against Perkins Coie and Jenner & Block as unconstitutional, with more legal showdowns on the horizon. It’s a classic case of “fight or flight,” and Paul Weiss’s decision to negotiate rather than litigate has clearly not sat well with everyone under its roof.

What’s Next?

The departing quartet is setting up their own boutique firm, presumably with a client roster that reads like the Fortune 500. While the name of their new venture remains under wraps it is bound to attract high interest, especially as antitrust and tech litigation heat up in the coming years.

As for Paul Weiss, the firm now faces the challenge of rebuilding its internal culture and reassuring clients that it’s still a force to be reckoned with.

For Big Law firms, reputation is everything—and this episode is a reminder that sometimes, the biggest battles aren’t fought in court, but in the court of public opinion.

It appears today that the line between law and politics is blurrier than ever. Whether you see the Paul Weiss exodus as a principled stand or just another chapter in the never-ending saga of Big Law drama, one thing’s clear: in the high-stakes world of legal power brokers, it pays to keep your friends close—and your partners even closer.

Because in Big Law, as in life, sometimes the real action happens after the deal is done.