When a partner leaves a law firm, the partner’s economic entitlements are often unclear. On one hand, too often law firms do not have written partnership agreements at all or have written partnership agreements that do not address this issue. In these instances, the New York Partnership Law, which dates back to 1914 and whose provisions are hardly crystal clear, governs. On the other hand, even when the partnership has a written partnership agreement that addresses the economic entitlements of a departing partner, the agreement is often ambiguous and is, therefore, subject to competing interpretations. In either case, the partner’s departure often leads to misunderstanding and conflict that can, unfortunately, result in litigation.
Last month, the Appellate Division, First Department, issued two decisions concerning the economic entitlements of departing law partners. In one decision, the court was faced with a departed partner’s claim against his former law firm where there was no written agreement concerning the rights of departed partners. In the second decision, the First Department analyzed the language of the law firm’s written partnership agreement to determine the departed partner’s economic rights.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
