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  There was a second development that reinforced this trend: A regulatory change in the 1990s allowed law firms to incorporate as limited liability partnerships (LLPs) rather than general partnerships. The change mattered primarily for the one thing law firms know best: lawsuits. If a member of a general partnership commits malpractice, and a court hands down a half-billion dollar judgment against him, every one of his colleagues is financially responsible. But under limited liability, the other partners are largely insulated.