A U.S. federal court has directed Duane Morris LLP to respond to a proposed class action accusing the firm of misclassifying certain lawyers as “partners” to shift financial responsibilities onto them—while excluding them from a share in the firm’s profits. The suit was filed by a former non-equity partner, who claims this misclassification forced affected individuals to cover payroll taxes and business expenses without the legal or financial benefits of true partnership.
The presiding judge in San Diego rejected most of the firm’s motion to dismiss the case, allowing the majority of the claims to proceed. Two of three dismissed claims may be revised and resubmitted, according to the court.
The lawsuit argues that once promoted to non-equity partner status, individuals were no longer eligible for employee benefits such as healthcare, disability insurance, and employer-paid taxes. Despite being labeled partners, they were allegedly subject to at-will termination and held no ownership stake in the firm. The plaintiff also contends that women and minority attorneys were compensated less than their white male counterparts.
Duane Morris has denied the claims, asserting that the plaintiff was a legitimate partner and was treated in accordance with all legal and professional standards. The case continues in the U.S. District Court for the Southern District of California under the case number 3:24-cv-01783.
