BUSINESS AND LAW

The law firm of Rutan & Tucker has been known not only as the largest Orange County-based law firm but as a place that can keep its partners happy and its turnover to a minimum.

Yet within three months, the Costa Mesa firm lost three partners. Two started a new firm, and one joined an upstart group formed last year by lawyers who broke from the county branch of giant Gibson, Dunn & Crutcher in Los Angeles.

One of the surprises was the departure of H.L. Mike McCormick, a 25-year veteran of the firm who is well-known for his work in land-use law. He and fellow Rutan partner Arthur G. Kidman left in May to set up their own firm in Costa Mesa. Among Kidman’s clients are numerous Southern California water districts.

Both had practiced in the firm’s public law department, which handles legal matters for cities and governmental agencies.

“It was best for our interests to leave,” said McCormick, who had been Rutan’s managing partner for about three years until March, 1987. He would not say why he left the firm but stated that he and Kidman “have good feelings” for the firm. Ronald P. Arrington, a partner in Rutan & Tucker, said, “I’m not sure they shared their reasons for leaving with us.”

Late last month, senior trial lawyer Barry Laubscher quit to take a job heading the litigation department of Pettis, Tester, Kruse & Krinsky, a fast-growing law firm that got its start 16 months ago when 17 lawyers defected from Gibson Dunn.

For Laubscher, who had been with Rutan nearly 15 years, the move was a “great opportunity” with a “new challenge” of building a litigation department for the young firm.

“I easily could have stayed at Rutan & Tucker and never would have been unhappy,” he said. “But I’m excited to be here.”

Arrington praised Laubscher, calling him a “star” lawyer.

“They made him an offer he couldn’t refuse,” Arrington said. “It was a good acquisition for them. I’m sorry it was at our expense.”