NJ Upholds Non-Competition Agreement

As previously reported in <i>LFPBR</i>, several states have upheld the forfeiture of non-qualified retirement benefits otherwise payable to a partner choosing to compete with the firm. In <i>Borteck v. Riker, Danzig, Scherer, Hyland, and Perretti, LLP</i> (A-31-03) (April 5, 2004), the New Jersey Supreme Court unanimously concluded that the retirement provisions of a law firm's partnership agreement did not violate N.J. Rules of Professional Conduct (RPC) 5.6, and held the competing partner to lose his retirement benefits. The case provides further guidance for firms in designing, drafting and defending enforceable forfeiture-for-competition agreements.

20 minute read June 01, 2004 at 10:17 AM
By
Sheldon I. Banoff
NJ Upholds Non-Competition Agreement

As previously reported in LFPBR, several states have upheld the forfeiture of non-qualified retirement benefits otherwise payable to a partner choosing to compete with the firm. See, eg, Sheldon I. Banoff, “Illinois Developments Are Good News for Multi-State Law Firms Across the Country,” LFPBR (Nov. 2002), pg. 5.

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