A law firm’s reputation is its greatest asset. How you manage client disputes, partner moves, or internal challenges can trigger immediate and public scrutiny. The pressure to respond is immense, and the stakes are high. Building and executing a robust communications strategy is fundamental to operational resilience.

Lateral movement remains a defining feature of the modern legal market, especially among larger firms. Each year, approximately 3,000 lateral partner moves take place within the Am Law 200 alone, and at a typical Am Law 200 firm, about 4.6 percent of partners join from other firms annually. Broader hiring data reflects the same momentum: U.S. law firms hired nearly 4,300 lateral attorneys across all positions in 2024, according to the National Association for Law Placement (NALP) data.  The market also experiences notable fluctuations. A recent NALP survey concluded that lateral partner moves declined by 7 percent in 2023 but rose slightly in 2024, and many firms continue to view lateral hiring as their most effective growth strategy.

Malpractice exposure also continues to climb nationwide. Data aggregated by professional liability insurers and the American Bar Association (ABA) show that four out of five attorneys will face a malpractice claim during their careers, with more than 35,000 legal malpractice claims filed annually in the United States and approximately 12,000 resulting in monetary recovery. The severity of these claims is also rising. In a survey of major insurers, all but one of the 11 carriers reported paying a claim exceeding $50 million, and four reported payouts topping $300 million. In fact, small firms are disproportionately affected, with 70 percent of all malpractice claims filed against firms of one to five lawyers.

These trends underscore the need for law firms of every size to implement proactive, structured, and deliberate frameworks for managing lateral exits and client disputes. This enables your firm to analyze and plan responses with clarity, confidence, and credibility.

Set goals and align with your mission

Start every crisis response by defining clear, prioritized goals that align with your firm’s objectives. You may need to reaffirm client commitment, preserve relationships after a partner’s move, or control media narratives. Decide from the outset what success means for your firm.

Consider what your firm wants to achieve and what it must prevent. Strive to avoid decisions that please one group but alienate another, risking long-term reputational harm. Align every action and message with your core mission. If your values include “unwavering client advocacy” or “a collaborative culture,” silence or inconsistency in response to crises can be seen as contradictory.

Understand your stakeholders

Crisis touches all parts of a law firm. Your internal audience, including leadership, partners, associates, and professional staff, is your first concern. Reactions will vary. Some may urge a robust narrative to counteract rumors; others will advocate for discretion. Associates often judge the firm’s character and their own loyalty based on its response to crises.

Clients, regulators, future recruits, media, and the broader legal community closely monitor your firm’s actions. During high-profile disputes or lateral moves, clients not directly involved may worry about stability or service. The reactions of these external audiences, alongside your internal stakeholders such as leadership, partners, and staff, should be mapped and anticipated so that you can proactively tailor your messaging and avoid unintended consequences.

Navigate conflicts with ethical obligations in mind

Legal and regulatory boundaries shape what you can say or do. Attorney-client privilege and confidentiality agreements have strict guardrails that limit public statements, especially when defending the firm, as it could unintentionally waive privilege or expose sensitive strategies.

Cultural considerations also play a role. A response that’s too defensive or aggressive may conflict with the firm’s established reputation as judicious and grounded. Finding the right balance is critical. Silence can appear to be an admission; speaking too soon can escalate the situation. The best course respects your core values and enhances your ability to serve clients without compromising trust.

Assess and mitigate five types of risk

Every reputational crisis affects the legal, financial, reputational, operational, and strategic pillars of your firm. Use these categories to guide risk assessment and mitigation:

Legal risk: Litigation is an immediate risk. Client disputes, for example, may evolve from billing conflicts to malpractice claims. Comments made in the firm’s defense may be discoverable, and partner departures may spark disputes over solicitation, fiduciary duty, or contract terms. A press release by a competitor misrepresenting client continuity can prompt legal action and public escalation.

Financial risk: Rarely limited to lost revenue alone, financial risk can also manifest as a client’s or group’s departure, which can trigger similar departures and create a domino effect. Costs pile up when the firm evaluates human capital, including the expenses of external advisers such as outside counsel and crisis communications experts, as well as disruptions to business. All of these can drain profitability and billable efficiency.

Reputational risk: A law firm’s brand, built over years, can suffer harm in seconds if a client’s viral complaint or headlines about a partner exodus go unaddressed. These stories can erode client and community trust. Future talent may question the stability of your firm. Referral sources may send matters elsewhere, and your position in the legal market can be damaged by perceptions of instability.

Operational risk: Crises can sap a firm’s productivity and morale, especially when communications are fragmented or poorly timed. If associates hear of a key departure in the press before being notified internally, rumors and uncertainty spread rapidly. These cultural fractures can drain productivity and even trigger additional departures.

Strategic risk: The long-term impact can be severe. Mishandling a client dispute can risk tarnishing your reputation in target industries. Major talent losses may undermine the launch of new practices or geographic expansion. Losing momentum during or after a crisis often forces a shift from strategic growth to survival mode.

Mitigation begins with activating your Crisis Response Team (CRT), which should include the managing partner, general counsel, heads of communications and relevant practice areas, among others. When appropriate, the CRT should immediately engage outside counsel for an objective review, enforce disciplined messaging protocols, and establish a sequence for communicating with internal and external stakeholders.

Craft a deliberate communications strategy

Deliberate, multi-tiered communication is essential. Always begin with internal messaging. Partners, associates, and staff must receive accurate information from leadership before hearing it from the media or gossip. Clear and concise communication will steady morale and deter rumor-mongering.

Align external communication channels and tone with your firm’s established voice. For some, a formal statement to clients and the media is appropriate; for others, a client-specific approach is sufficient. Avoid abrupt shifts. Consistency and transparency across channels are vital, especially as internal communications may become public.

Prepare designated spokespeople and equip them with carefully developed talking points. Effective messages combine a summary of the firm’s position, supporting facts, a timeline of actions, empathy for affected parties, and a forward-looking reassurance of stability.

Monitor, evaluate, and learn

No crisis plan is static. Continuously evaluate your firm’s response using tangible metrics, including client retention rates, new matter origination, social media sentiment, media coverage tone, and feedback from recruiters regarding reputation in the legal market.

The CRT should meet regularly as the crisis unfolds, reviewing progress and adapting tactics as needed. When the situation stabilizes, conduct a post-crisis review. Identify successes, failures, and unintended consequences. Use lessons learned to refine plans and train leadership for future events.

Proactive, strong, and measured responses to client disputes and partner departures build resilience and protect your firm’s reputation. Implementing a structured, ethics-focused approach empowers your team to manage reputational threats and seize control before the next crisis strikes.

 

 

Gina Rubel is the CEO and general counsel of Furia Rubel Communications. She educates professionals on devising and implementing strategic communications plans to manage their reputation, develop and attract top talent, and drive business success. She is the co-host of On Record PR. Gina can be reached on LinkedIn at https://www.linkedin.com/in/ginafuriarubel/.