Following up on my previous post, 900-Lawyer Duane Morris Sued For Misclassifying Non-Equity Partners To Shift Business Expenses And Taxes To Underpaid Female And Nonwhite Attorneys: ABA Journal, Nonequity Partner's Unjust Enrichment Suit Against Duane Morris Remains Largely Intact After Judge's Ruling:
A federal judge has refused to dismiss a proposed class action lawsuit alleging that Duane Morris saddles nonequity partners with business expenses and partnership taxes, even though they have no power in the law firm.
The Aug. 1 opinion by U.S. District Judge Cathy Ann Bencivengo of the Southern District of California allowed several claims by Black female nonequity partner Meagan Garland. Three claims were tossed, but Garland was given leave to amend two of them.
Besides shifting partner burdens to nonequity partners, the suit says, the firm also paid Garland less than white and male attorneys and failed to provide pay information in violation of California law. …
After her promotion, Duane Morris stopped withholding employment taxes from Garland’s compensation and began assessing her a share of the firm’s partnership taxes, the suit says. The firm withheld and directed back to itself a portion of fixed-fee compensation as a capital contribution and another portion to defray a year’s worth of operating expenses, she alleged. … [Judge] Bencivengo tossed claim … that alleged that the firm failed to withhold taxes.
- Above the Law, Duane Morris On The Hook To Fight Nonequity Partner Suit
- Bloomberg Law, Duane Morris Mostly Fails to Trim Non-Equity Partner Class Suit
- Bloomberg Law, Duane Morris Partner Who Sued Over Non-Equity Status Left Firm
- Law.com, Duane Morris Can't Escape Former Nonequity Partner's Compensation Class Action
- Law360, Duane Morris Avoids Employee's Tax Withholding Claim
- Reuters, US Law Firm Duane Morris Must Face Lawsuit Over Alleged Partner Pay Scheme
- Tax Notes, Court Dismisses Tax Claim in Non-Equity Partner Class Action
- Bloomberg Law, Big Law Seizes on Promotions That Bring Big Tax Bill, No Profits
- Bloomberg Law, Non-Equity Partnership Lawsuits Test Big Law Employment Model
- Financial Times, ‘Kirklandisation’ of Big Law Pushes Firms to Launch Salaried Partnerships
- David Lat, Non-Equity Partnership Can Benefit Firms—And Lawyers, Too
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