Latest Defections Put Troubled Firm in Breach of Credit Deal With Bank

MIAMI - Ruden McClosky has lost two equity partners, leaving the firm below the 40 equity partners required by its bank line of credit, according to several sources.

The departures mean the troubled Fort Lauderdale-based law firm must promote at least one lawyer to equity partner to comply with the bank’s requirement.

The latest exits appear to indicate Ruden still has not halted its downward spiral. Over the last year, what once was one of the strongest law firms in the state has been plagued by mass defections, office closings and revenue shortfalls. For the first time in a decade, the firm’s bank required partners to sign personal guarantees to cover its line of credit — something that many partners resisted.

A call for comment to managing partner Carl Schuster was not returned by deadline.

A Ruden spokesman confirmed the two departures but declined comment on the firm’s credit line. The spokesman said the firm recently hired two attorneys, Richard Serafini in Fort Lauderdale and Mitchell Robiner in Tampa.

Members of Ruden’s executive committee have said they are taking steps to turn the firm around and have no plans to close any offices. But some have questioned whether the firm will survive.

After 11 years at Ruden, Matthew Nelles left last week for Broad and Cassel. He specializes in intellectual property and commercial litigation and is a past president of the Intellectual Property Association of Florida and chair of the trademark committee of the national Intellectual Property Lawyers Association.

Nelles said he joined Broad and Cassel’s Fort Lauderdale office because “there is more of an opportunity here. The firm has offices all over the state, and there are not a lot of people who specialize in intellectual property.”

Nelles said Ruden’s troubles did not prompt his departure and he had only talked with one firm, although he acknowledged ...