A law firm sued a former associate lawyer for $3 million, alleging breach of fiduciary duty and contract after he left to join a competing firm.
The firm sought a declaration that the departing lawyer was not entitled to compensation for unbilled work in progress (WIP) existing at the time of his departure.
The departing lawyer counterclaimed for his share of fees billed and collected post-departure.
On cross-motions for summary judgment, the court dismissed the law firm's damages claim, finding the lawyer's actions constituted permissible planning and compliance with professional obligations, not competition.
The court also held that the oral compensation agreement entitled the departing lawyer to his share of fees on files he had carriage of, once those files were billed and collected, regardless of his departure.
