Goodman and Carr LLP, which is as one Canada's top tax and real estate law firms, is shuting down following the departure of several rainmakers and the recent death of one of the founding partners.

The Toronto firm's partners voted to disband the mid-sized practice of about 90 lawyers at a meeting in its downtown head office Tuesday night. Goodman and Carr is the largest Canadian law firm to close. The law recently failed in merger talks with larger rivals, including firm's international firm Baker & McKenzie.

This news surprised many in the legal community as the Goodman and Carr was viewed as a strong and profital competitor. The future looked uncertain, as many large Canadian clients were the subject of foreign take overs during the past few years and the firm lacked interanational contacts and depth to adequately service the large multinationas.

As a mid-size firm it was also squeezed by larger national and international firms and small specialized firms with lower costs. In Toronto, many large firms pay top dollars to recruit talent and the small and mid-size firms lack the capital and income to compete for the top talent. A confidetial source at the firm stated the firm was profitable but profits were declining and in the near future the partners could reasonably be expected to contribute additional capital or take out a large bank loan. The future did not look attractive and the partners decided it was better to close the doors on their terms rather than the bank's terms in a forced liquidation. "They are realists; they could read the writing on the wall, and it was not positive", he said.