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WHAT WE'RE WATCHING

SUCCESS AND SUCCESSION - Competition for talent remains a top challenge for midsize law firms. While it has spurred some recent mergers, it also presents an opportunity to differentiate from the competition. And nothing makes a midsize firm stand out like being good at succession planning. "There is going to be a significant changing of the guard in who runs law firms, and a lot of midsize firms have not had their next generation develop their own books or get the requisite training," Brian Donnelly of Farella Braun & Martel told Law.com's Jessie Yount. Donnelly, who will complete his second term as managing partner in 2022, said that the firm instills in its attorneys the concept that business generation is a key part of legal practice. "We're taking steps to get our younger partners involved in various aspects of management, and I'm confident that we have great midlevel partners that have the proper experience to step up," Donnelly said. Want to know more about how midsize firms can make succession planning successful? Register to attend our Mid-Market Pro webinar today at 11 a.m. ET titled, "Why Succession Planning is Crucial to Midsize Firm Success— and Survival."

UNNATURAL SELECTION - As legislators and policymakers across the U.S. consider how to regulate the use of AI hiring tools, law firms and companies who don't take appropriate precautions face a growing risk of violating the Americans with Disabilities Act (ADA) and other anti-discrimination statutes, Law.com's Cassandre Coyer reports. As scrutiny of these tools continue to grow, lawyers expect to see more lawsuits reach their desks, and they warn that employers should be prepared. "I think that there is a meaningful risk that an AI [hiring] tool will or can violate the Americans with Disabilities Act if appropriate measures are not taken by either the vendors that manufacture these tools or the employers that are using these tools before they're put into use," said Joseph C. O'Keefe, a partner in the labor and employment law department and co-head of the restrictive covenant and trade secret group at Proskauer. The ADA places the responsibility on the employer to ensure that the hiring tools they use don't discriminate against people who have disabilities, said Kenneth Gage, a partner in the employment law department of Paul Hastings and chair of the firm's workplace retaliation and whistleblower defense practice. "Employers have to recognize that if they employ any of these tools, they have to be prepared to make accommodations for individuals who have disabilities, and disabilities interfere with their ability to interact with that tool," O'Keefe said.

ON THE RADAR - Kemper Corporation, an insurance firm, and Infinity Insurance were hit with a class action Tuesday in California Central District Court. The complaint accuses the defendants of receiving a "windfall" during the COVID-19 pandemic because individuals substantially reduced their driving while still paying insurance premiums. The plaintiffs contend that although the defendants implemented a refund program, it was not enough to offset the unjust enrichment to the defendants. The action was filed by Martin & Bontrager and other law firms. Counsel have not yet appeared for the defendants. The case is 2:22-cv-05171, Torrez v. Infinity Insurance Co. et al. Stay up on the latest deals and litigation with the new Law.com Radar. 

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