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Restrictive Covenants and Partnership Agreements
A partnership is the legal framework around which many law firms are organized, and the partnership agreement is the final word in the rights and responsibilities of the firm's partners. But law firm partnerships are limited in the terms they may include in their partnership agreements; these agreements must comply with legal ethics rules. Restrictive covenants, common in other industries, often run afoul of the legal ethics rules. This article examines the ethics of common partnership restrictive covenants, including non-compete and forfeiture-for-competition provisions, notice of withdrawal requirements, prohibitions on solicitation of partners, employees, and clients, and restrictions on using and taking documents, and suggests ways for firms to ethically protect the firm's interests.
Non-Compete and Forfeiture-for-Competition Provisions
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