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Baker & McKenzie's Houston office is launching a tax practice, recruiting Fulbright & Jaworski partner Susan Stone to head the operation.
The Houston office was established two years ago and until now has housed just two practices - projects and litigation.
James O'Brien, chair of the North American tax practice group, says: "It was always on the radar screen to bring in a tax practice because it is so much a part of major projects work."
Houston clients needing tax advice have previously been referred to the Dallas, Chicago or Palo Alto offices.
O'Brien aims to increase the number of Houston tax lawyers to five by the end of the year, including another lateral partner hire.
Stone has been with Fulbright since 1981 and has been a partner for 20 years. She will serve Baker & McKenzie's existing client list, including non-project companies such as Dell and Compaq. She will also bring her own clients with her.