It has been almost two years since the California Supreme Court issued its decision in Heller Ehrman v. Davis Wright (2018) 4 Cal.5th 467, holding that a dissolved law firm has no property interest in fees generated after dissolution for hourly matters that were in progress when the firm dissolved. And earlier this year, on February 13, 2020, the District of Columbia Court of Appeals essentially made the same finding in Diamond v. Hogan …

While it is a good practice for any law firm to periodically assess its exposure to potential partner departures, the pandemic’s impact on law firms has made this task more important than ever. Doing so involves taking a candid look at the firm’s management, operations, strategy, and culture to determine whether any partners or groups at the firm are likely to depart and, if so, what can be done to mitigate the effects of any…

Does your firm have Non-Equity Partners?  Of Counsel, Consulting, or Contract Attorneys? All of the above? What is the nature of their relationship with the firm, and how are they compensated? Are these attorneys paid as employees (W-2), independent contractors (1099), or do they receive a K-1? How are they described on your website and to clients? As law firm managers find themselves adapting to the changing workplace, law firms are increasingly hiring, promoting, and…

As the legal industry continues to adjust to life during a pandemic, things are still changing every day as law firms make economic and other adjustments to their traditional ways of doing business.  And all this change is likely to lead to even more change.  As a result, we will continue to see law firm transitions and transformations abound.  For law firm partners who are starting anew, as well as those who are working to…

As the legal industry continues to adjust to life during a pandemic, some law firm transitions and transformations inevitably will lead to law firm closures and dissolutions. We have seen numerous headlines of law firms, big and small, actively tightening their belts. But if, or when, a law firm considers closing its doors, is dissolution the best option? And will its partners and clients be protected? The end of a law firm marks a critical…

We read the news daily of law firms – big and small – announcing cutbacks, furloughs, layoffs, reductions in salaries, and distribution freezes. Every industry has been feeling the impact of this global pandemic, and the legal industry is no different. As lawyers who inherently crave predictability, it is difficult to conceive of when and how things will return to “normal,” if everything should, or if we are living in the “new normal” now. But…