Legal News

All eyes on Montali as ex-Brobeck partners argue for taking clients to new firms

By Jonathan Hayter

In a hearing closely watched by both sides of the Heller Ehrman bankruptcy, ten former Brobeck partners and their new firms argued Monday that they were completely in their rights to continue to work with their clients. 

The ex-partners contend that the firm's last partnership agreement, enacted as Brobeck faced its collapse in 2003, permitted them to take clients and work to their new firms. Arguments on Monday revolved around whether that agreement can waive the rights of partners to sue for profits under the Revised Uniform Partnership Act and case precedent defined by a 1984 judicial decision in Jewel v. Boxer.

Several lawyers involved in the Heller case were at the hearing on Monday, including estate counsel John Fiero, a partner at Pachulski Stang Ziehl & Jones, and Thomas Willoughby, partner at Felderstein Fitzgerald Willoughby & Pascuzzi, who represents Hellers' creditors.

On Friday, Judge Dennis Montali, of the Northern District of California Bankruptcy Court, issued a tentative ruling that would grant the defendants summary judgment on five of the suit's nine counts, but left the final four, dealing with fraudulent conveyance, undecided. If the defendants win, undermining Jewel, it would have implications nationwide for hiring practices surrounding partners from defunct firms.

Full story at The Recorder.

Full post as published by Legal Pad | LA on April 14, 2009 (boomark / email).