Law firm survived scandal, not pandemic

Ciklin Lubitz, once one of Palm Beach County's most formidable law firms, recently disbanded and its lawyers scattered after the coronavirus pandemic stretched the firm's ability to pay millions of dollars in office rent.

Last month, the firm filed a Palm Beach County Circuit Court petition to distribute its assets to creditors, including to its former landlord, Vanderbilt Office Properties. The state petition is an alternative to a federal bankruptcy filing.

The move came as the firm stopped paying $75,000 a month in rent for its leased office space at the Northbridge Centre in West Palm Beach.

Alan Ciklin, the former firm's managing partner, said the law firm owed more than $6 million on a multi-year lease.

Ciklin said the 36-year-old firm's fortunes were strong into 2021 but began to falter in recent months, thanks to the pandemic's lingering effects on business and staffing. When the firm broke up in May, it was down to fewer than a dozen lawyers.

The firm's dissolution is the end of an era in the legal community, said Gregory Coleman, former president of The Florida Bar.

"It was a great run," Ciklin said. "I don't know whether COVID made it easier to say goodbye, but all signs pointed to the fact it was time to make the transition."

Ciklin, Lubitz law firm a former Palm Beach County powerbroker

Ciklin, Lubitz's dissolvement is a quiet ending to a once-powerful firm that survived the jailing of its founding partner, numerous real estate booms and busts, and periodic internal money squabbles.

What began as a partnership in 1978 between former Palm Beach County staffers William Boose and Ciklin eventually became Boose, Casey, Ciklin, Lubitz, Martens, McBane & O'Connell, created in 1985 after a merger of three law firms.

Boose, Casey went on to ride the real estate development waves of the 1980s, 1990s and 2000s.

In the 1980s, it helped craft major projects, including PGA National in Palm Beach Gardens. In the 1990s, the firm won town of Palm Beach approval to turn former President Donald Trump's Mar-a-Lago residence into a private social club.

More recently, the firm worked on the creation of the Ballpark of the Palm Beaches, where the Washington Nationals and Houston Astros play spring training games.

"There's no question that they were the most-dominant law firm, certainly countywide, for their work in government issues, land planning and zoning," said Coleman, a West Palm Beach attorney.

During the mid-1980s, Boose also played a role in building the firm's longtime office building, the black-glass complex known as the "Darth Vader" building at 515 N. Flagler Dr. At one point in 1998, the firm was up to 30 lawyers and occupied nearly three floors of the Northbridge Centre.

Government corruption probe takes down law firm's founding partner

But in 2007, Boose admitted he helped a former county commissioner hide profits from a land deal. The explosive scandal, part of a wide-ranging public corruption probe by federal investigators, led to the imprisonment of former county commissioner Tony Masilotti. Boose went to prison, too, spending 15 months in a federal lockup.

Boose's law firm survived the scandal but changed its name to Casey Ciklin. But other controversies followed, including the scrutiny on a subsequent partner, Brian O'Connell, over his handling of guardianship cases.

In 2012, partner Pat Casey retired. The firm lopped off another name and became Ciklin, Lubitz & O'Connell.

Two years later, the firm ended up on the losing end of a money dispute with Casey, who was awarded $2.2 million after a Palm Beach County Circuit Court judge ruled he was entitled to a big pot of retirement cash. The amount later was reduced by an appellate court to $511,200.

Through the years, other attorneys came and went, not always amicably.

At the time of the firm's June 12 court filing, money lawsuits were ongoing with two former attorneys: O'Connell, who left in 2018, resulting in another name removal from the firm; and John Boykin, who left in March.

But it was the pandemic that ultimately ended the firm's fortunes, Ciklin said.

With the firm's lawyers mostly working from home the past two years, some lawyers struggled to keep producing revenue, Ciklin said. After some attorneys retired during the pandemic, the firm also had difficulty finding new lawyers to fill posts, he said.

With its shrinking roster of lawyers and income, the firm remained saddled with a lease for the entire 20th floor as well as part of the 4th floor.

The firm unsuccessfully tried to strike a deal with the landlord to take less space, or buy out its lease for a lesser amount, Ciklin said.

"We did like anybody would do and went to the landlord and said, 'Hey,this is not sustainable for us. Here's a bunch of choices,' " Ciklin said.

But efforts to to negotiate with Vanderbilt failed, and Ciklin said the firm decided to disband.

An attorney for Vanderbilt Office Properties declined to comment.

Partners forfeit assets to close Ciklin Lubitz law firm

By filing the assignment of benefits action last month, three remaining partners forgo $70,000 each in partnership stakes. Partners also gave up their assets, including $2 million in incoming legal fees, $651,000 in a bank account, some office furniture, two microwaves and various computers, according to court documents.

The filing doesn't stop any lawsuits, but it does mean the only money left to recover is in the hands of the firm's designed assignee, attorney Ross Hartog, who will decide how much money each creditors receive.

Tim O'Neill, an attorney for O'Connell, said it's unlikely his client will recover the full amount of money he believes he's owed from Ciklin Lubitz, but he'll likely recover some.

While O'Connell was disappointed when the firm disbanded and relinquished its assets, O'Neill said O'Connell wasn't surprised because he saw the firm's staffing shrink over time.

Boykin said he filed his lawsuit to establish his claim for $22,500.

"I will just be one of the creditors entitled to a pro rata share of the assets of the firm if there is not enough money to pay all the creditors," Boykin said in an email. "Not a lot of money, but better than 'a sharp stick in the eye!' "

On a more reflective note, Boykin added: "The firm was a great place to work for over 36 years ... but most law firms have a life cycle and as we all aged, so did the firm. So as the lawyers retired, so now has the firm."

Some Ciklin Lubitz lawyers jump to bigger firms, others

start own shops

These days, the former Ciklin Lubitz lawyers are working at a number of law firms. Several, including Ciklin, went to the Jones Foster law firm in West Palm Beach, while others landed at the Nason Yeager law firm in Palm Beach Gardens. A few also started their own law firms.

Ciklin said he's busier than ever handling real estate matters at Jones Foster, and he said he's enjoying not having to run a law firm.

"I get to practice law, and I don't have to manage anybody or worry about finances," he said.

Alexandra Clough is a business writer at the Palm Beach Post, part of the USA TODAY Florida Network. You can reach her at [email protected]. Twitter: @acloughpbp.

Alexandra Clough

Columnist

Palm Beach Post

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