My friend Peter was an accountant. He told me that at his partners meetings there were partners who worked hard to build the firm for the benefit of all. Then there were others who stayed mostly quiet and out of sight, but every so often rose silently and blew a poison dart into the discussion before slinking away. Those outside of the firm would never have guessed at the internal dysfunction.
Getting into a Partnership can be exciting. Staying in one is often more of a mixed bag. But exiting a partnership? Now we have something to talk about!
Some of my best client work involved partnership break-ups. They can become very nasty, very quickly.
Back in the days when everything seemed to be a binary choice, I was a young man who saw many things in black and white.
At the time, I would classify law firms as being one of two types.
We all know people in a wonderful marriage. We also know people in terrible marriages. Sometimes we attribute this to them having been so desperate to have a life partner that they rushed into things without taking the time to really get to know their partner, or even having been negligent or willfully blind to their incompatibility with their partner.
In prior parts of this series, I wrote about the advantages and disadvantages of becoming an equity partner in a law firm. In order to complete the picture, I really should address the fantasy of a non-equity partner (“NEP”) as well.
In this Part, I would invite you to live in an imaginary world where you respect and appreciate all of your partners, each of them is a phenomenally talented lawyer, who is also productive, respectful, collaborative, ethical, and has an amazing client base. And they all love you too.
If you are a typical law firm partnership, you will not be content to let things be. No, the firm must grow and increase its profits and the prestige of each of its partners. You need more partners! And to be fair, you don’t want to lose your bright young associates who are chasing the Holy Grail, and you cannot keep all of them satisfied with non-equity partnership gimmicks indefinitely. So, grow you must.
Back in the old days when law school cost very little and you could rent an apartment in Toronto for a reasonable amount, law firms hired newly qualified lawyers at modest salaries and gave them simple assignments. The firms also provided mentoring and training, so that the juniors could learn to do more challenging work. Firms neither made much money on the newbies, nor did they pay the newbies much. The pay-off came after a few years as the lawyers gained experience and could bill enough to earn their keep.
There is an old story about a young man who, after finally meeting the love of his life following years searching the globe for his one true soulmate, took his girlfriend’s hands in his own one starlit summer evening, stared deeply into her beautiful eyes, and whispered to her in a husky, excited voice: “since I met you, I can’t eat. I can’t drink. I can’t sleep… I’m completely broke.”
There were good things about the old days when law was primarily a profession, and lawyers joined law firms with a view to learning, working hard, and becoming partners. One of them was that law firms cared about their associates progressing, developing clients, and becoming self-sufficient.
Let me tell you about two different law firms.
Big Law Group One is a well-respected Canadian firm with many hundreds of lawyers, some of whom appear to be happier than others. Some of their dearly departed professionals have told me distressing stories about their lives at that firm, and the effect that the work demands had on their mental health. They also shared with me their feeling that the firm let them down when they required accommodation to recover from their mental health problems. They painted a picture of a firm which did not care much about its people, especially after those people became unable or unwilling to continue to sacrifice their health on the altar of billable hours.