Trends and Analysis for Successfully Transitioning Lateral Partners
into New Partnerships While Minimizing Risk and Reducing Potential Liabilities

California’s New Rules: How They Impact Attorney Departures (Part I)

As most of you likely know by now, on November 1, 2018, the new California Rules of Professional Conduct will go into effect changing the regulation of the practice of law for all California attorneys. The significant changes to the prior rules and the enactment of some entirely new rules will have a tremendous impact on all California attorneys. Here, we will analyze the effect of the new rules on attorney departures and law firm transitions. In this post, which is one in a series, we will examine how the new Rule 1.4, Communication with Clients, will impact attorney transitions. More

California Partners Can Lawfully and Ethically Plan and Prepare to Depart from Their Law Firm

In the world of lawyers and law firms, attorney mobility is a continuing reality. Thoughtful lawyers who plan to depart their law firms are prudently getting advice on how to comply with their legal and ethical obligations to the firm and to their clients as part of the departure process. Law firms that have comprehensive plans in place to manage attorney and group departures can quickly and effectively respond to the news of a departure to help minimize its impact on the firm and clients. Yet one of the biggest questions raised by both law firms and lawyers during and after the departure process is: Can a partner plan to depart a law firm without breaching fiduciary duties to the firm? The short answer: Yes. More

Law Firm’s Non-Solicitation Agreement Restricts Mobility of Departing Partner

A recent legal ethics opinion from North Carolina provides interesting insight into the ethics of a non-solicitation agreement between law firms that restricts attorney mobility but not necessarily a client’s choice of counsel.

The North Carolina 2017 Formal Ethics Opinion No. 5 analyzed the issue of whether two law firms could enter into a non-solicitation agreement with respect to each other’s employees as part of their merger talks. In the proposed contractual provision, Law Firm A agrees not to induce or solicit any partners, associates or other employees of Law Firm B to join Law Firm A (and vice-versa), for the duration of the merger talks and for a period of two years following the merger discussions. The rationale for the provision was “to foster the trust necessary for both firms to disclose financial information about the productivity of the lawyers in the firms without fear that, should the merger negotiations be abandoned, the other firm would attempt to lure highly productive lawyers or ‘rainmaker’ lawyers away from the other firm” (See Opinion.) More

Planning is Key to Successful Attorney Transitions

Partner or group departures seldom go smoothly – at least that is what we hear in the legal news headlines. However, the transitions that do go well, and there are many of those, tend not to be newsworthy events. Most of us tend to be interested in the salacious details of where it all went wrong, who is to blame and who acted badly. But what makes successful departures different? Simple answer: preparation and planning. More

Are you Really a Partner? Non-Equity or Income Partners May Have Unique Issues During a Departure or Lateral Move

In today’s legal world, the traditional view of what it means to be a “partner” seems to be ever-changing. As more law firms move from two-tier to multi-tier partnerships, the question of what it truly means to be a non-equity, income, or salaried partner is becoming an increasingly important issue. Specifically, during any partner departure or lateral transition, the exact nature of the partner’s status has a variety of ethical, contractual, and legal implications for the lawyer, as well as for the law firm. This issue must be analyzed carefully as part of any law firm departure. More