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Nonequity associate’s unjust enrichment swimsuit…
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Nonequity associate’s unjust enrichment swimsuit towards Duane Morris stays largely intact after choose’s ruling
By Debra Cassens Weiss
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 haven’t 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 haven’t any energy within the legislation agency.
The Aug. 1 opinion by U.S. District Choose Cathy Ann Bencivengo of the Southern District of California allowed a number of claims by Black feminine nonequity associate Meagan Garland. Three claims had been tossed, however Garland was given depart to amend two of them.
Apart from shifting associate 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 associate because of the misclassification scheme.
After her promotion, Duane Morris stopped withholding employment taxes from Garland’s compensation and started 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 price 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 associate place.
Bencivengo refused to dismiss claims for breach of contract, fraud, violation of California legislation, conspiracy to commit fraud, negligent misrepresentation, breach of fiduciary responsibility, skilled negligence, unjust enrichment, request for an accounting and quantum meruit restoration.
However Bencivengo tossed claims, with depart to amend, that sought a declaratory judgment and that alleged that the agency did not withhold taxes.
She additionally tossed a declare in search of restitution underneath California legislation, with out depart to amend. Bencivengo stated Garland was making the identical argument as an unjust enrichment declare, and she will’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 Legislation are among the many publications with protection of Bencivengo’s determination.
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