When we last covered Meagan Garland’s discrimination suit against Duane Morris, the focus was on where the lawsuit would take place. After some venue changes, the case landed in the Northern District of California. The merits of the case dealt with how Duane Morris treated their nonequity tier of partners — Garland argued, among other things, that nonequity partnerships were being used as a way for the firm to shift business expenses and tax obligations off of actual equity partners. Big claims, but for allegations like that to have any actual bite to them they have to make it past a motion to dismiss. Guess what? The teeth are sharp! Law.com has coverage:
A California federal judge has allowed the bulk of a former nonequity partner’s claims that Duane Morris systemically misclassified and shifted costs of business onto non-equity partners and made discriminatory pay decisions based on her race and gender to move forward, rejecting most of the firm’s motion to dismiss the class-action complaint.
The order, signed by U.S. District Judge Cathy Ann Bencivengo of the Southern District of California on Friday, allowed Black female former nonequity partner Meagan Garland to proceed with a broad range of claims against the firm, including allegations of fraud, breach of contract and professional negligence. The decision paves the way for Garland to seek discovery into the firm’s compensation practices.
Garland’s suit has several prongs to it — one of them accuses Duane Morris of discriminating by underpaying her in comparison to her white male peers, but the widest reaching consequences of the suit could come from bringing to light the rationale behind an otherwise black box compensation system. Once a fringe firm arrangement, two-tiered partnerships have become so wildly adopted in the industry that even some of the oldest firms have adopted the trend. While it’s still too early to call, the success of this case may encourage other nonequity partners at Biglaw firms to launch similar cases.
Duane Morris Can’t Escape Former Nonequity Partner’s Compensation Class Action [Law.com]
Earlier: Duane Morris Non-Equity Partner Lawsuit Escalates With Forum Shopping And Witnesses
Are Nonequity Partnerships Part Of A Biglaw Tax & Discrimination Scheme?
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s . He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who is learning to swim, is interested in critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at cwilliams@abovethelaw.com and by tweet at @WritesForRent.
The post Duane Morris On The Hook To Fight Nonequity Partner Suit appeared first on Above the Law.
When we last covered Meagan Garland’s discrimination suit against Duane Morris, the focus was on where the lawsuit would take place. After some venue changes, the case landed in the Northern District of California. The merits of the case dealt with how Duane Morris treated their nonequity tier of partners — Garland argued, among other things, that nonequity partnerships were being used as a way for the firm to shift business expenses and tax obligations off of actual equity partners. Big claims, but for allegations like that to have any actual bite to them they have to make it past a motion to dismiss. Guess what? The teeth are sharp! Law.com has coverage:
A California federal judge has allowed the bulk of a former nonequity partner’s claims that Duane Morris systemically misclassified and shifted costs of business onto non-equity partners and made discriminatory pay decisions based on her race and gender to move forward, rejecting most of the firm’s motion to dismiss the class-action complaint.
The order, signed by U.S. District Judge Cathy Ann Bencivengo of the Southern District of California on Friday, allowed Black female former nonequity partner Meagan Garland to proceed with a broad range of claims against the firm, including allegations of fraud, breach of contract and professional negligence. The decision paves the way for Garland to seek discovery into the firm’s compensation practices.
Garland’s suit has several prongs to it — one of them accuses Duane Morris of discriminating by underpaying her in comparison to her white male peers, but the widest reaching consequences of the suit could come from bringing to light the rationale behind an otherwise black box compensation system. Once a fringe firm arrangement, two-tiered partnerships have become so wildly adopted in the industry that even some of the oldest firms have adopted the trend. While it’s still too early to call, the success of this case may encourage other nonequity partners at Biglaw firms to launch similar cases.
Duane Morris Can’t Escape Former Nonequity Partner’s Compensation Class Action [Law.com]
Earlier: Duane Morris Non-Equity Partner Lawsuit Escalates With Forum Shopping And Witnesses
Are Nonequity Partnerships Part Of A Biglaw Tax & Discrimination Scheme?
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s . He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who is learning to swim, is interested in critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at [email protected] and by tweet at @WritesForRent.
