In August 2025, Reuters, Above the Law, and Law.com reported on a groundbreaking lawsuit that could change the way non-equity partners are compensated across the country. While working at his previous firm, Schenk Law Firm partner, Benjamin Schenk, served on the legal team representing the plaintiff in this case — Garland v. Duane Morris — and achieved a key early victory when a federal judge allowed the majority of Meagan Garland’s claims to move forward. This case highlights issues that many attorneys face in a non-equity partner law firm.
Garland is not just about one person or one firm. It implicates a broader system that can misclassify partners, underpay them, and shift firm expenses onto their shoulders, often hidden within complex or opaque agreements. If you have been given the “partner” title without true equity, fair profit sharing, or transparency into how your compensation is determined, you could be facing the very same issues at the heart of this lawsuit.
This case emphasizes the dynamics of law firms utilizing non-equity partner models and the unique challenges faced by attorneys within this structure.
The Challenges of Working in a Non-Equity Partner Law Firm
Understanding the implications of a non-equity partner law firm is crucial for aspiring attorneys.
Two-tiered equity structures divide partners into:
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Equity Partners – with ownership stakes, voting rights, and a share of firm profits.
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Non-Equity Partners – who may carry the “partner” title but lack ownership, full profit participation, or a voice in governance.
While this model was once rare, it has now become widespread in Biglaw. By 2009, two-tiered structures existed in about 67% of firms, and only a handful of top firms maintained single-tier models. As of 2023–2025, roughly 86–87% of the top 100 U.S. law firms have adopted a non-equity tier. Even longtime holdouts like Debevoise and Paul Weiss recently introduced them.
The risk is that this structure enables firms to cap partner earnings, shift business costs — including state and local tax obligations as well as the employer’s full share of Social Security and Medicare contributions — and obscure how pay decisions are made through opaque “black box” systems.
What the Garland Case Alleges
Ms. Garland alleged that Duane Morris:
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Systemically misclassified non-equity partners to avoid sharing firm profits. These practices are particularly concerning in a non-equity partner law firm, where the lack of equity can lead to exploitation.
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Shifted business costs onto these partners without fair benefit.
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Made discriminatory pay decisions based on race and gender.
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Maintained a non-transparent compensation system with no meaningful accountability.
A Major Step Forward
In August 2025, U.S. District Judge Cathy Ann Bencivengo ruled that Ms. Garland could proceed with a broad range of claims, including:
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Fraud
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Breach of contract
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Professional negligence
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Discrimination based on race and gender
This ruling means that the plaintiff’s legal team can now move into discovery, compelling the firm to turn over internal records about how compensation decisions are made.
This situation is especially vital for those in a non-equity partner law firm, where transparency is often lacking.
Why This Matters for Other Non-Equity Partners
The outcomes of the case may influence policies at other firms, particularly those with a non-equity partner law firm structure. From Above the Law’s reporting:
“While it’s still too early to call, the success of this case may encourage other non-equity partners at Biglaw firms to launch similar cases.”
If you have been:
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Given the partner title without equity
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Required to pay your own business expenses
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Paid less than peers for the same work
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Denied access to financial information
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Treated differently based on race, gender, or other protected status
…you may have a legal claim for compensation, damages, and possibly reinstatement of your rightful equity status.
How The Schenk Law Firm Can Help
While at his previous firm, Benjamin Schenk was part of the Garland legal team, a high-profile, nationally covered lawsuit that took direct aim at two-tiered equity structures and the harm they cause. He now brings that experience to The Schenk Law Firm, where he represents clients in cases involving:
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Partners in law, accounting, and other professional firms challenging unfair compensation systems.
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Executives and professionals facing financial fraud, misclassification, or cost-shifting schemes.
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Whistleblowers exposing discriminatory or deceptive pay practices.
Take the First Step Toward Fair Treatment
For those misclassified as non-equity partners in a non-equity partner law firm, understanding your rights is essential. If you believe you have been:
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Misclassified as a non-equity partner
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Paid less than peers because of race, gender, or other protected status
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Denied transparency into firm profits or financial performance
…you may have legal options to recover lost compensation and hold your firm accountable. Contact The Schenk Law Firm for a free consultation.
Disclaimer: Every case is different, and past results do not guarantee future outcomes. This article summarizes publicly available allegations and court rulings. All defendants are presumed innocent until proven otherwise.