Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Weil Gotshal & Manges Reducing its Space in General Motors Building
Weil Gotshal & Manges Reducing its Space in General Motors Buildi...
Princeton Office of Blank Rome Welcomes Gary Ruckelshaus
Princeton Office of Blank Rome Welcomes Gary Ruckelshaus
Sidley Austin LLP Welcomes D. Gilbert Friedlander to Dallas Office
Sidley Austin LLP Welcomes D. Gilbert Friedlander to Dallas Office
ERISA Lawyer of the Year Joins Mayer Brown
ERISA Lawyer of the Year Joins Mayer Brown
Your profile matches an open legal position. Apply now!
Legal Job Listings

Bankrupt Law Firms Cannot Collect Profits from Former Partners

Seal-Of-The-New-York-state-Court-of-Appeals

Earlier this week, the New York Court of Appeals ruled that bankrupt law firms cannot claim profits from a client relationships after partners have moved on to new firms, according to Forbes.

The ruling from the court said that since clients have the right to choose representation for legal issues, a defunct firm cannot follow their former attorneys, looking for portions of their profits.

The Second U.S. Court of Appeals in New York requested that the state appeals court issue a ruling because it was considering the issue in a case involving Thelen LLP and Coudert Brothers.

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


“This is a major, major decision, and it’s an issue that’s been out  there a long time,” Les Corwin said. Corwin is a partner at Blank Rome.

According to the New York court, bankrupt firms are not allowed to claim profits due to public policy. The court said that if this practice were permitted, it would cut down on mobility of clients and go against New York ethics rules that prohibit fee-splitting.

“If I’m representing you in a major matter in your life, I can’t pick up the phone and say `I’m going to another firm and I can’t take you because it will cost me a lot of money,’” Corwin told Forbes.

Court of Appeals Rules Against Bankrupt Law Firms by

Tagged: , ,

Posted by on July 4, 2014. Filed under Law Firm News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Corporate Counsel, Mergers & Acquisitions
USA-NY-New York City

Our client, a worldwide tech company, is looking to add a corporate m&a associate counsel with 5-8 years of experience to their in-house legal team. This candidate should have experience wit...