Lukins & Annis PS, one of Spokanes largest law firms, is growing again after the departure of a quarter of its attorneys over the past year, says Jed Morris, the longtime firms president.


The firm recently hired two associates and now has 38 attorneys and 77 total employees, down from 48 attorneys and 105 employees a year ago.


Although the departure of attorneys hurt the firms total annual revenue, Morris says major changes can be expected over the lifetime of a law firm.


Over the course of 35 years, any firm is going to have occasions where attorneys or groups of attorneys elect to go to different practices, he says. Attorneys are hired and leave on a regular basis. Some retire or slow down, some take different jobs, and some go to work for the government. A convergence of several circumstances resulted in a more than average departure during the second half of 2006.


Morris declines to disclose how much the firms revenue fell over the past year, but says profits are at or above average on a per-partner basis compared with the last five or 10 years.


We were able to do that through management of the expense side as well, he says.


Morris says that despite the departures, the firm has held onto most of its high-profile clients, including Washington Trust Bank, The Wolff Co., URM Stores Inc., LeMasters & Daniels PLLC, and Cravens Coffee Co.


Morris expects the firm will return to its 2006 staffing level within two or three years.


Were at the stage where were really poised for growth and success, Morris says. Were working very hard to expand in areas of employment, real estate, land use, and construction law.


He adds, We found ourselves three months ago in a position that we wanted to expand our associate ranks, and we had the work to justify it. For us, the ideal number of attorneys is in the mid-40s. You have to have a number of somewhat specialized attorneys in order to be a true full-service practice, however, you can reach a point that you can only represent so many clients before you run into conflicts of interest.


Recruiting efforts have included contacts with bar associations, as well as law schools. In the last two decades, 10 percent to 20 percent of the attorneys Lukins & Annis has hired have joined the firm after leaving other firms, Morris says.


Were always looking for the right people, he says. If they are a good fit, we will look to hire them and make room for them.


Lukins & Annis currently occupies about 20,000 square feet of floor space on the 15th and 16th floors of the Washington Trust Financial Center downtown, where it has been located since 1974, two years after forming.


The firms other specialties include banking, tax law, incorporation, estate planning, foundations, trusts, product liability, personal injury, and medical malpractice.


Its growth will reflect growing sectors of the economy here, Morris says.


Weve hired two new associates in the last two years devoted solely to real estate. This whole corridor is expanding significantly, Morris says of the Spokane-Coeur dAlene region.


To land new business, Lukins & Annis does some institutional advertising, but mostly relies on its reputation and word-of-mouth.


Morris says theres a good, healthy competition for clients between Spokane law firms.


The legal community here is more collegial and friendly than in some of the larger communities, he says. Spokane is the type of community where business reputation is important, and if you intend to work and be good business partners with a client, you need a reputation as completely professional. Attorneys and law firms in Spokane are respectful of how they are perceived by others in the legal and business communities.


The firm was founded in 1972 by Scott Lukins and Eugene Annis. Lukins was a tax attorney and Annis was a litigator. They remain active with the firm.


They combined their wisdom into a general practice focusing on business law, Morris says.


When the firm, which started with eight lawyers, moved to the Washington Trust building, at 717 W. Sprague, it was one of the first tenants in the building. Initially, it occupied 5,000 square feet of space on the 16th floor.


Through a series of mergers, the firm developed a core that has expanded through associate hirings and lateral hiring of experienced attorneys, he says.


The firm expanded rapidly in the 1970s, becoming at times the largest law firm in Spokane, Morris says. It opened a branch office in Coeur dAlene in 1985 and an office in Moses Lake in 1992.


Today, its active beyond Washington state and North Idaho.


For instance, Lukins & Annis has represented developer Fritz Wolff for many years and continued to do so as The Wolff Co. acquisition and development operations moved from Spokane to Scottsdale, Ariz., in about 2000, Morris says.


Morris, however, says the firm doesnt plan to open an office in Arizona or anywhere else in the near future.


Were not considering another branch office, he says. Were able to serve (distant) clients through electronic communications, fax, and e-mail.


He says the coming trend will be to increase virtual office situations, rather than branch offices.


I like to think were a relatively progressive firm, he says. Several attorneys work at least part time away from the office.


One paralegal works from her home in Winthrop, Wash., about 185 miles northwest of Spokane, where she assists in preparing documents for real estate transactions.


Morris, a Gonzaga University School of Law alumnus who joined the firm in 1983, maintains an active practice in addition to serving as the firms president. He spends 75 percent of his legal-work time on commercial law, transactions, and litigation, with an emphasis in banking and bankruptcy.


A good administrative staff allows me to focus on planning and strategy for the firm as opposed to managing day-to-day operations, he says.


The firm has a business administrator and a human resources and marketing director to handle business activities.


He says his vision for the firms future is a reflection of that of its founders: Continue to develop core business services and expand to meet clients needs for full-service legal assistance.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.