When ‘Run’ on Partners Starts, So Does Race to Save the Law Firm

In the year prior to its bankruptcy filing in September, more than 70 partners left struggling law firm LeClairRyan.

Sedgwick, a now-defunct firm that preceded LeClairRyan into Chapter 11 nearly a year ago, lost more than 30 partners ahead of its decision to dissolve in January 2018. In the massive “run” on partners leading up to Dewey & LeBoeuf’s catastrophic collapse in May 2012, 200 of 300 fled the imploding firm.

Law firms are structured so it’s inherently tough to stem partner departures and the financial death spiral that ensues. But there are some legal and business tactics firms can ...