February 29, 2020 / 1:05 AM / a month ago

9th Circuit rules Howrey estate has no property interest in client matters

The 9th U.S. Circuit Court of Appeals has ruled that law firms have no right to profits stemming from unfinished client matters that partners take with them to new firms, rejecting a bid by the trustee for the now-defunct Howrey LLC against the law firms that scooped up its partners when it collapsed in 2011.

A three-judge 9th Circuit panel on Thursday adopted a District Court of Columbia Court of Appeals ruling from earlier this month that because clients have an “almost unfettered” right to hire or fire counsel, client matters billed on a hourly basis are not the property of a law firm.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/385lpyZ

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