US law firm Duane Morris must face lawsuit over alleged partner pay scheme
U.S. District Judge Cathy Ann Bencivengo in San Diego on Friday denied Duane Morris', opens new tab bid to dismiss most of the claims in the lawsuit brought by Meagan Garland, a former partner in the firm's employment law practice.
Bencivengo said she would give Garland the chance to amend her lawsuit to reassert two of the three claims she dismissed.
"We are very pleased with the judge's thoughtful ruling and look forward to getting into the merits of the case," said Bibianne Fell, whose law firm Fell Law PC is representing Garland.
A spokesperson for Duane Morris declined to comment.
Many U.S. law firms internally designate some partners as non-equity or "income" partners. Such partners typically earn far less than full equity partners, whose compensation is tied directly to firm profits.
Garland sued Duane Morris in August 2024, accusing the firm of systematically and unlawfully misclassifying its non-equity partners as "partners" even though they can be hired and fired at-will, and do not have an ownership stake in the firm.
After promoting lower-ranked lawyers to its non-equity partner tier, Duane Morris stops paying the employer's share of their federal and state payroll taxes, as well as their benefits such as health care, vision, dental and disability insurance, Garland alleged.
Garland, who is Black, also accused Philadelphia-founded Duane Morris of paying women and minorities less than their white male counterparts.
Duane Morris said in a court filing, opens new tab that Garland's claims lacked any validity, and that she was a "genuine partner whom the firm has always compensated and otherwise treated fairly and well within the bounds of the law."
The case is Garland v. Duane Morris LLP, U.S. District Court for the Southern District of California, No. 3:24-cv-01783.
For Meagan Garland: Bibianne Fell, Benjamin Schenk and Marlee Horwitz of Fell Law
For Duane Morris: Gregory Knopp and Elise Bloom of Proskauer Rose
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