What’s so bad about lawyer non-competes? Pretty much everything. They deprive clients of choice of counsel, hamper lawyer mobility, and are unenforceable and unethical. Despite their well-established triple-peril, some law firms persist and continue to include (sometimes elusively) non-compete provisions in their law firm partnership agreements.
This month’s column discusses the relevant New York Rule of Professional Conduct, the settled New York case law, and recent case law from outside New York which puts some further teeth into the general prohibition. The column closes by analyzing some restrictive covenants that occasionally and unfortunately find themselves into law firm partnership agreements.
Rule 5.6
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