David Lat on the Above the Law blog has been analysing lessons learnt from the implosion of New York global law firm Dewey & LeBoeuf. In particular, a post-mortem of the Dewey saga by Los Angeles-based lawyer Edwin Reeser – a structuring and business transaction expert who also consults with law firms – has caught his eye with its suggestions for how to learn from Dewey’s downfall.
Firstly, he suggests that the firm’s demise may have been predictable, possibly years in advance. An inspection of the structure and compensation programme implemented would have shown fundamental flaw.
The situation may have been preventable, too, with better partner participation and intervention. Mr Reeser also brings the culture at the firm into question.
‘It takes a resource more powerful than money to pull a partnership together and change direction away from disaster.’