Law Firms Settle Partner Poaching Lawsuit at Start of Trial
Midsize Pennsylvania firms Swartz Campbell and Chartwell Law Offices spent more than five years embroiled in litigation sparked by lateral hiring in Florida.
February 28, 2018 at 12:23 PM
2 minute read
On the same day their trial was set to begin, two midsize Pennsylvania law firms have settled a long-running case over lateral hiring in Florida.
Philadelphia defense firm Swartz Campbell and Valley Forge-based Chartwell Law Offices reached a settlement Wednesday morning in the Philadelphia Court of Common Pleas after more than five years of litigation. Judge Patricia McInerney announced the settlement order in court Wednesday. The monetary terms of the agreement are under seal.
As part of the deal, the firms agreed to a mutual no-contact policy under which they cannot contact each other's lawyers or staff with regard to employment or partnership. The firms also may not obtain information about each other's finances under the agreement, and may not speak with the press about the case. They also agreed to dismiss other litigation related to the Philadelphia suit.
Kenneth Dubrow of Chartwell appeared on his firm's behalf Wednesday. Candidus Dougherty of Swartz Campbell appeared on her firm's behalf, and Swartz Campbell managing member Jeffrey McCarron was present as well.
In the 2012 lawsuit, Swartz Campbell alleged that Chartwell hired lawyers away from the firm in order to start an office in Fort Myers, Florida, and that the lawyers violated their limited liability company agreement with Swartz Campbell in order to make the move. Since then, the firm's allegations have expanded to involve other lawyers.
Beginning in 2010, Swartz Campbell has alleged, Chartwell interfered with Swartz Campbell's partners and employees.
Chartwell hired partner James Myers and then-associate Jessica Teitelbaum away from Swartz Campbell in 2012. The two had been Swartz Campbell's only Fort Myers lawyers, so the firm closed the office after their lateral move. The complaint said Myers violated his former firm's limited liability company agreement by becoming affiliated with Chartwell and helping Chartwell take over the Fort Myers office before he officially withdrew from Swartz Campbell.
In orders from the week leading up to trial, McInerney precluded a list of defense witnesses from testifying at trial, including former Swartz Campbell lawyers. The judge also denied the defense's motion to preclude Swartz Campbell's economic expert from testifying, and she granted Swartz Campbell's motion seeking to preclude a Florida legal ethics professor from testifying as a defense witness regarding the enforceability of Swartz Campbell's LLC agreement.
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