Regulation Firm Penalties On Departing Associates Just Acquired Riskier

Law360 (February 5, 2021, 2:08 PM EST) — The D.C. Court of Appeals, on Feb. 4, issued an crucial selection that sharply boundaries the means of law corporations to penalize departing partners who go away for other legislation firms and acquire purchasers with them.

This selection can make crystal clear that fiscal penalties violate Rule 5.6(a) of the D.C. Policies of Experienced Perform, considering the fact that they limit the lawyer’s ideal to practice, and therefore interfere with the client’s ability to pick a attorney.

Even just before COVID-19, massive regulation companies were experiencing major volatility with partners shifting firms. COVID-19 has escalated these lateral moves and the ensuing financial strike that law firms will experience….

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