Perfect Storm: Law Firm Insolvencies, Jewel V. Boxer

Law360, New York (July 2, 2009, 12:00 AM EDT) -- Recent filings in the bankruptcy cases of two major law firms illustrate a legal peril of which many lawyers are unaware.

The doctrine of Jewel v. Boxer[1], a 1984 case decided by the California Court of Appeals, requires partners of dissolving law firms to wind up partnership business without extra compensation for the benefit of the partnership.

Unfinished partnership business includes legal matters undertaken for current clients as of the dissolution of the firm, whether billed as an hourly or contingent fee basis.

The implications for...
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