At the end of October, seemingly overnight, a major law firm called Weil Gotshal announced it was winding down after a number of partners departed and talks of a merger with another firm failed. So how did a $2 billion big law firm collapse in the span of a few weeks? In 2015, Yale Law professor John Morley published a paper called "Why Law Firms Collapse," that now looks very prescient, with his idea of a “partner run," or the law firm version of a bank run. What is especially interesting about Morley's paper is his forensic examination of partner-led businesses and the idea that the model might be inherently fragile. In this episode, we talk to Morley about his newly relevant paper, the collapse of Weil Gotshal, whether AI will really change how law firms are run, and the future of big law.
Read more:
Weil Gotshal Says Remaining Partners Can Resign Now, Keep Profit
Weil Gotshal Partners Vote to Dissolve Firm, Name Committee
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