Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Law Firm Partnership & Benefits ReportLJN NewslettersNewsSections

Departing Partners: Duties and Pitfalls

By Debra Raskin

A modern day fixture of the law firm is the revolving door. See Graubard Mollen Bannett & Horowitz v. Moskovitz, 86 N.Y.2d 112, 114 (1995). As Chief Justice Rehnquist has observed: '[i]nstitutional loyalty appears to be in decline. Partners in law firms have become increasingly 'mobile,' feeling much freer than they formerly did and having much greater opportunity than they formerly did, to shift from one firm to another and take revenue-producing clients with them.' Justice William H. Rehnquist, 'The Legal Profession Today,' 62 Ind. L.J. 151, 152 (1986/1987). The increasing frequency with which partners leave law firms for new ones raises many issues concerning the permissibility of a withdrawing attorney's conduct regarding client/attorney solicitation, removal of client files or other documents and breach of anti-competition clauses in partnership agreements. In addition to adherence to the professional ethical rules, a partner is subject to a fiduciary duty to his firm and is thus constrained by such duty throughout the life of the partnership. See Gibbs v. Breed, Abbott & Morgan, 271 A.D.2d 180, 184-85 (N.Y. App. Div. 2000).

Law partners are bound to their firms by a fiduciary duty requiring 'the punctilio of honor the most sensitive.' Graubard, 86 N.Y.2d at 118 (quoting Meinhard v. Salmon, 249 N.Y. 458, 464 (1928)). Law partners are similarly bound as fiduciaries to their clients. These dual duties can come into conflict in a myriad of ways when a partner simultaneously wishes to exercise his or her right of unrestricted job mobility and look out for the best interests of his client.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.