Keeping Up With The News: Jewel Risks In Lateral Partner Hiring

Which law firm is rumored to be failing this week, and who will be next? Although, inevitably, the target firms insist that retaining bankruptcy counsel does not mean a filing is imminent, such legal industry headlines are catnip for strong firms hoping to bolster their own talent by luring lateral hires away from weak ones. With those opportunities, however, comes the real risk of being sued later by the failed firm's bankruptcy trustee. The trustees have won some of the opening rounds against the hiring firms premised upon the Jewel doctrine.