Issues in Partner Migration and Law Firm Dissolution

Abstract

The practice of law is a mobile profession: “have computer will travel.”Notwithstanding mobility, many lawyers prefer to practice in a law-firm setting with other lawyers for a number of reasons, from personal (we like each other) to economic (sharing overhead) to professional (support and assistance). Spectacular things can however happen when these firms dissolve and the firm’s former partners, creditors, and even retirees fight over the assets – even defining the assets of the law firm can be challenging and can implicate the attorney-client relationship.This updated paper discusses in more detail issues facing a law firm contemplating dissolution as a result of the departure of rainmakers and the duties (fiduciary and otherwise) of the recently-departed and the remaining lawyers. This also discusses the continuing saga of litigation surrounding the dissolution of Heller Ehrman LLP and the question whether hourly fees should be included in the "unfinished business doctrine" certified by the Ninth Circuit to the California Supreme Court.The updated paper also discusses risks that migratory lawyers leaving a law firm as lateral hires and their new law firm should consider where the departed law firm is left considering remedies such as dissolution..