Holland: “You've been in secret talks with Klein & Gabler.
Lee: “They approached me.
Holland Manners and Lee Mercer[src]

Klein & Gabler was a Los Angeles-based law firm and one of Wolfram & Hart's rival companies. The firm was in secret talks with Wolfram & Hart's senior associate Lee Mercer, who was planning on leaving Wolfram & Hart and taking several clients with him. For this reason, Mercer was executed after being exposed during one of Wolfram & Hart's loyalty sweeps.