The Financial and Legal Consequences of a Law Firm Dissolution on the Partners of the Defunct Firm

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As Howrey slips beneath the waves and the likelihood that some other law firms may similarly dissolve, it is critical for every partner in a law firm in dissolution or on the brink of dissolution have a complete understanding of the consequences of a law firm implosion. Most law firm partners are blithely ignorant of the consequences that often flow from a law firm dissolution. Liabilities imposed on individual law firm partners and law firms that acquire significant portions of a law firm which dissolves are often draconian. These dissolutions create a whole breed of potential liabilities to individual partners and to successor law firms. Merging a practice group or branch office of a law firm creates a separate set of hurdles.

Being partner in a law firm that dissolves is a dreadful experience, akin to the death of a family member. And, dealing with the estate of the dissolved law firm is a long and treacherous course.

Law firm implosions and dissolutions create minefields that must be very carefully navigated. The consequences can be dreadful, but nonetheless, a map of the minefield is essential.

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Jerome Kowalski
Kowalski & Associates

Jerry Kowalski is the founder of Kowalski & Associates, which provides law firm management... View Profile »


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