Issues to Consider When Asking a Partner to Leave
As law firms grapple with new economic realities, it is becoming more common for firms to ask individual or groups of partners to leave in an effort to shore up the firm's finances. Not only can this decision be extremely difficult considering the firm's personal relationships with those partners, it can also involve ethical and financial risks for the firm and for the departing partner.
July 26, 2017 at 08:49 AM
10 minute read
As law firms grapple with new economic realities, it is becoming more common for firms to ask individual or groups of partners to leave in an effort to shore up the firm's finances. Not only can this decision be extremely difficult considering the firm's personal relationships with those partners, it can also involve ethical and financial risks for the firm and for the departing partner.
An ugly divorce benefits no one, but instead can be costly for both the firm and the departing partner. Handled properly, the risks can be minimized and both the firm and the partner can hopefully move on in the best way possible.
|The Decision
The concept of a partnership is premised on a confidence and trust shared among partners that is uniquely personal. Absent specific provisions in the partnership agreement or other law, partners generally do not need a reason to dissolve the partnership or to ask partners to leave.
However, there may be limitations to this rule under certain circumstances. For example, there have been a number of high-profile lawsuits brought by partners against their law firms alleging gender discrimination with respect to compensation or other issues.
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