Not necessarily. Depending on the referral, the other firm may have more direct expertise in the question presented, or available case load capacity where they can take the case quickly. Referral of cases between attorneys in Alabama is common.
No representation is made that the legal services provided are greater than legal services provided by other lawyers. This answer neither creates an attorney-client relationship, nor does it create an ongoing duty to respond to further inquiries.
Could be, or could be that it was over his head. Was it a sexual harassment case?
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Does your employment agreement with the first lawyer address this type of situation? You are the client. You are in charge. I would demand a meeting with the first lawyer to get a better understanding of the situation and why her referred your case to another lawyer. You have the right to choose the lawyer who represent you. You must be comfortable with the new lawyer or firm. Get answers that satisfy you.
Alabama State Bar, Rules of Professional conduct, Rule 7.2 (e), requires the following language in all attorney communications: No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.