© 2014 The Texas Lawbook.
By Mark Curriden – (December 22) – For four decades, Joe Dilg represented the biggest energy companies in the world, led scores of huge oil and gas mergers and acquisitions and mentored general counsel for some of the largest businesses in Texas.
But Dilg will forever be remembered for successfully guiding Vinson & Elkins through years of intense national scrutiny for the Houston-based law firm’s representation of the firm’s biggest client, Enron Corp.
Next week, Dilg retires from V&E and the practice of law after 38 years.
“There have been a ton of good times and some tough ones, too,” he said in an interview with The Texas Lawbook.
Dilg is described by colleagues and clients as understated and humble, which is refreshing in a state known for its flamboyant lawyers. His last day at V&E is Dec. 31.
While he said that he still has other work-related ambitions, he made it clear that he will not work for any other law firm.
“The last thing I would ever do is compete with the firm,” he said. “I’m 63 and I still have some tread left on the tires. I’m itching to do things on the business side.”
That shouldn’t be a problem, according to lawyers, noting that Dilg has either mentored or worked with general counsel and corporate executives at Energy Transfer Partners, Enterprise Products, Occidental, Pioneer Natural Resources, United Airlines and Plains All American. He’s close friends with chief legal officers at private equity giants Riverstone Holdings and Lazard.
“Joe is a great lawyer because he is a classic legal counselor,” says ETP General Counsel Tom Mason, a former V&E partner. “He listens to his clients and then finds solutions to get the job done.”
Born in Grapevine, Texas, Dilg is deeply involved in community projects in Houston. He serves on the boards of directors for the Houston Zoo and Houston Parks Board, where he is a major proponent of the Bayou Greenways 2020 project.
“It will transform the green space in our city and have a huge impact,” he said.
Dilg graduated with a bachelor’s degree in economics from Southern Methodist University. He received his law degree from the University of Texas School of Law in 1976. Global Chambers, a highly respected lawyer ranking service, rated Dilg as one of the world’s leading energy lawyers from 2002 through 2012.
“Joe was recognized as a superstar early in his career,” said Bruce Bilger, a former V&E partner who is now managing director and head of global energy at Lazard, a financial advisory and asset management firm. “He led more multibillion-dollar deals than any lawyer in Texas because clients knew he would have command of every detail of each transaction and that he was always the most prepared lawyer in the room.”
Dilg closed his final major energy transaction earlier this month when he served as legal counsel to Houston-based Plains All American Pipeline in a complex $1.15 billion acquisition of 50 percent of the BridgeTex Pipeline from Occidental Petroleum.
“Joe jumped into this very complicated and large deal proposal, did a quick study of the significant issues we faced and he worked with all parties to get the deal done,” said Plains All American General Counsel Richard McGee, who Dilg recruited to V&E more than two decades ago.
“From a client’s perspective, Joe is the complete package because he understands the legal and business issues,” said McGee. “He’s very gifted at communicating the issues with his clients and then very effective at just getting the deal done.”
Dilg worked 15 hours a day for two weeks on the transaction, noting that he also mentored Occidental General Counsel Marcia Backus for several years at V&E.
He said the practice of law has changed significantly since he started practicing in 1976.
Dilg said his most difficult days came in 2002 just as he was elected V&E’s managing partner. The firm’s largest client, Enron Corp., declared bankruptcy amid disclosures that the Houston energy company had committed accounting fraud. V&E was targeted by federal regulators, the bankruptcy trustee and plaintiff’s lawyers. Many legal analysts predicted the scandal would destroy the law firm, as it did the accounting firm Arthur Anderson.
“I love V&E and I hated seeing people taking potshots at the firm that were untrue and unfair, but we couldn’t fight back,” Dilg said. “It forced me to spend a lot of time with our clients explaining our position.”
V&E not only survived, it thrived, achieving record revenues and profits nearly every year under Dilg’s leadership.
“No one else could have kept the firm together like Joe did,” says V&E Chairman Mark Kelly. “Lawyers don’t like being told what to do, but Joe is so understated and humble that he was so good at building consensus.
“Joe put the firm above all else,” Kelly said. “Everything he did was about advancing his colleagues and the client – not about advancing his own career.”
Editor’s Note: Mark Curriden worked with Joe Dilg for eight years at V&E.
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