In today’s rapidly changing legal marketplace, law firms must prepare for potential partner departures before they happen, with detailed plans for reacting if a partner or group of attorneys leaves the firm for another firm. But partners or groups leaving voluntarily for greener pastures is not the only way for a lawyer to leave the
California Partner Departure Law
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Law Firm Risk Management Goals for 2021
Here it comes again, that dreaded thing: New Year’s resolutions. Yes, just when all of us were ready to turn the page on 2020 and embrace a new year with new possibilities, so far, the turmoil does not seem to have disappeared so quickly. And it likely won’t for a while. But that does not…
Looking at Your Firm’s Balance Sheet: Law Firm Clients, and Lawyers, are Not Property
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,…
Is Your Law Firm Prepared for the Next Partner or Group Departure?
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…
What’s in a Title? How Law Firms Define the Lawyers that work at the Firm Matters
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…
Law Firm Formations and Transformations
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…
Managing Law Firm Dissolutions in Uncertain Times
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…
California Law Firm Departures in the COVID-19 Era
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…
What Does ABA’s Departure Opinion Mean for California Law Firms?
Although we routinely see headlines about partner and group departures, especially during this time of the year, the ABA’s recent ethic’s opinion on obligations for lawyers changing firms (ABA Formal Opn. 489, December 4, 2019) received much less attention. Law firms should have taken notice, however, because the opinion represents some significant new…
California’s New Rules: How New Conflicts Rules Impact Attorney Departures
The new California Rules of Professional Conduct are now in effect and have changed how law firms and lawyers must identify and analyze conflicts when considering lateral hires. As we have previously reported, the new rules have a tremendous impact on all California attorneys, including for law firms and lawyers navigating attorney departures and law…