Duane Morris Settled Non-Equity Partner Lawsuit
The agreement concludes a two-year dispute regarding the classification and financial liability of non-equity lawyers.
Updated on Sept. 24, 2026 in Human Resources
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Duane Morris has reached a settlement in a long-running lawsuit brought by former employment attorney Meagan Garland. The case centered on the classification of non-equity partners and allegations that the firm improperly shifted partnership expenses to them.
Why it matters
The settlement highlights potential operational risks for firms that classify lawyers as partners without providing full financial upside. Misclassification claims create significant legal exposure if staff are treated as partners for expense purposes but not for compensation.
The litigation against the firm lasted more than two years before the parties reached an agreement. Specific financial terms of the settlement remain unknown as the parties finalize the formal agreement.
The players
Duane Morris
A global law firm providing legal services to corporate, institutional, and individual clients.
Meagan Garland
A former employment attorney at Duane Morris who initiated the legal challenge.
The details
The lawsuit alleged that Duane Morris misclassified certain lawyers as non-equity partners to load them with firm expenses without extending commensurate financial benefits. The settlement, filed in the Southern District of California, marks the end of this dispute over labor classification and partner-level financial obligations. The parties are now working to finalize the official terms of the resolution.
Timeline
September 23, 2026: The parties notified the court of the settlement agreement.
Market Landscape
This settlement aligns with ongoing industry scrutiny regarding the Clackamas Gastroenterology Associates v. Wells standard for employment classification. The outcome reflects broader legal challenges to firm structures that utilize non-equity labels to alter financial liability for staff.
Operators should review their own classification criteria to ensure that staff labeled as partners possess the actual decision-making authority and financial upside that aligns with their designation. Consult with qualified legal counsel to audit partnership agreements for exposure to misclassification claims.
The takeaway
The Duane Morris settlement underscores that firms must substantiate the 'partner' title with actual governance rights or profit-sharing to avoid claims of expense-shifting. Review your employment contracts and partnership agreements to verify that the duties and risks match the classification of the professional.
Further reading
For additional context on managing employee and partner status, visit Human Resources.
Source note: This article includes information reported by Bloomberglaw.
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