The downward spiral of workers' compensation filings has had severe economic impact throughout the legal profession. Dewey & LeBoeuf's collapse signals a major change in employment law. It is a contributing consequence of the continued decline workers' compensation claims.
Yesterday headlines announced the largest law firm bankruptcy filing in the history of the United States. Dewey & LeBoeuf. It was a law firm with a significant employment litigation practice.
The firm handled the defense of employment related matters including: discrimination complains, sexual harassment and discrimination claims. It assisted employers in the defense of claims arising out of mass layoffs and plant closing, age discrimination and disability matters. These claims are usually intertwined with workers' compensation matters, which have been the genesis for many collateral employment law related claims.
As workers' compensation laws become more restrictive, fewer employment law claims emerge. The present downward trend of workers' compensation claims continues. The consequences of this decline will impact the the practice of employment law forever.
Click here to read: Dewey's Post-Mortem Is Likely to Drag On
"Client bills can be tough enough to collect when a firm is in business. But once a firm goes under and the client-law firm relationship dissolves, collection suddenly gets much harder, say legal experts. "Suddenly, clients start complaining that the fees were too high; that the firm committed malpractice," said Jerome Kowalski, a New York-based consultant to law firms and expert on law-firm dissolutions."
