Scholarship Repository University of Minnesota Law School Articles Faculty Scholarship 2013 Rethinking the Law Firm Organizational Form and Capitalization Structure Edward S. Adams University of Minnesota Law School,
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[email protected]. Rethinking the Law Firm Organizational Form and Capitalization Structure EdwardS. Adams 1. INTRODUCTION The recent bankruptcy of large law firms has energized the debate over the viability of the traditional partnership model. Dewey & LeBeouf filed for bankruptcy in May 2012, becoming the largest law firm bankruptcy in U.S. history.' At its peak, Dewey employed 1,400 lawyers in several offices across the globe, causing some to ask whether Dewey's collapse was an iso- lated product of poor management or a symptom of greater systemic prob- lems. 2 But Dewey's bankruptcy was not the first to result in the dissolution of a large firm. The financial downturn of 2008 deeply affected the legal profession, and several firms went under. Many have already questioned the traditional business structure of the law firm in light of these bankruptcies and the manner in which they oc- curred.4 Partner defections and limited capital place criticism squarely on the partnership model as a major factor in these bankruptcies.