Regulation Corporations
Nonequity companion’s unjust enrichment swimsuit towards Duane Morris stays largely intact after choose’s ruling
August 6, 2025, 9:02 am CDT
A federal choose has refused to dismiss a proposed class motion lawsuit alleging that Duane Morris saddles nonequity companions with enterprise bills and partnership taxes, though they don’t have any energy within the legislation agency. (Picture from Shutterstock)
A federal choose has refused to dismiss a proposed class motion lawsuit alleging that Duane Morris saddles nonequity companions with enterprise bills and partnership taxes, though they don’t have any energy within the legislation agency.
The Aug. 1 opinion by U.S. District Decide Cathy Ann Bencivengo of the Southern District of California allowed a number of claims by Black feminine nonequity companion Meagan Garland. Three claims had been tossed, however Garland was given go away to amend two of them.
In addition to shifting companion burdens to nonequity companions, the swimsuit says, the agency additionally paid Garland lower than white and male attorneys and failed to supply pay info in violation of California legislation.
Garland had alleged that her efficient pay dropped after she was promoted to nonequity companion because of the misclassification scheme.
After her promotion, Duane Morris stopped withholding employment taxes from Garland’s compensation and commenced assessing her a share of the agency’s partnership taxes, the swimsuit says. The agency withheld and directed again to itself a portion of fixed-fee compensation as a capital contribution and one other portion to defray a 12 months’s value of working bills, she alleged.
Garland additionally claimed that nonequity companions had been required to provide their very own computer systems, web and workplace provides.
Garland claims that she didn’t know in regards to the deductions to her pay till after she accepted the nonequity companion place.
Bencivengo refused to dismiss claims for breach of contract, fraud, violation of California legislation, conspiracy to commit fraud, negligent misrepresentation, breach of fiduciary obligation, skilled negligence, unjust enrichment, request for an accounting and quantum meruit restoration.
However Bencivengo tossed claims, with go away to amend, that sought a declaratory judgment and that alleged that the agency didn’t withhold taxes.
She additionally tossed a declare looking for restitution underneath California legislation, with out go away to amend. Bencivengo stated Garland was making the identical argument as an unjust enrichment declare, and she will be able to’t assert each claims without delay.
Duane Morris declined to remark when contacted by the ABA Journal. The agency beforehand stated it strongly disagrees with the allegations.
Reuters and Bloomberg Regulation are among the many publications with protection of Bencivengo’s resolution.
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