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Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
Edition 11ISBN: 978-1133587576Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
Edition 11ISBN: 978-1133587576 Exercise 9
What May One Do to Attract Clients from a Previous Employer?
FACTS Carl Adle and Louise Bart formed a law firm as partners, and Anne Lily, Marvin Thomas, and Tim Jones joined the newly formed firm of Adle Bart as associates (nonpartner employees). After about five years, Lily, Thomas, and Jones became disenchanted with the law firm and decided to form their own, to be called Lily, Thomas Jones.
Lily and Thomas suggested to Jones that they contact approximately five hundred of Adle Bart's current clients. Lily and Thomas had prepared a model letter to inform clients about the new law firm (Lily, Thomas Jones) and to encourage them to leave Adle Bart and to become clients of the new firm. The letter also indicated that Lily, Thomas Jones would offer legal services far better than those of Adle Bart: billing rates would be more reasonable, service more prompt, and legal representation more effective and successful. The reference to success was aimed, in part, at three large clients who recently lost lawsuits under Adle Bart representation. Although the losses had not resulted from malpractice or mishandling by Adle Bart, Lily and Thomas knew that significant amounts of money had been at issue and that the clients were sensitive about the results of the lengthy litigation.
The letter included two postage-paid form letters for the prospective client to sign and mail. One form letter was addressed to Adle Bart, informing them of the client's desire to discontinue the client-attorney relationship and requesting the firm to forward all files to Lily, Thomas Jones. The other form letter, addressed to Lily, Thomas Jones, requested representation.
Jones is reluctant about the proposed mailing. Lily and Thomas, in turn, argue that their new firm is not doing as well as they expected. They essentially give Jones an ultimatum: join in the letter or leave the firm. Jones, who has thoroughly alienated Adle Bart, does not believe he has any immediate alternative job opportunities.
Social, Policy, and Ethical Considerations
What are the competing social interests at stake in this controversy?
FACTS Carl Adle and Louise Bart formed a law firm as partners, and Anne Lily, Marvin Thomas, and Tim Jones joined the newly formed firm of Adle Bart as associates (nonpartner employees). After about five years, Lily, Thomas, and Jones became disenchanted with the law firm and decided to form their own, to be called Lily, Thomas Jones.
Lily and Thomas suggested to Jones that they contact approximately five hundred of Adle Bart's current clients. Lily and Thomas had prepared a model letter to inform clients about the new law firm (Lily, Thomas Jones) and to encourage them to leave Adle Bart and to become clients of the new firm. The letter also indicated that Lily, Thomas Jones would offer legal services far better than those of Adle Bart: billing rates would be more reasonable, service more prompt, and legal representation more effective and successful. The reference to success was aimed, in part, at three large clients who recently lost lawsuits under Adle Bart representation. Although the losses had not resulted from malpractice or mishandling by Adle Bart, Lily and Thomas knew that significant amounts of money had been at issue and that the clients were sensitive about the results of the lengthy litigation.
The letter included two postage-paid form letters for the prospective client to sign and mail. One form letter was addressed to Adle Bart, informing them of the client's desire to discontinue the client-attorney relationship and requesting the firm to forward all files to Lily, Thomas Jones. The other form letter, addressed to Lily, Thomas Jones, requested representation.
Jones is reluctant about the proposed mailing. Lily and Thomas, in turn, argue that their new firm is not doing as well as they expected. They essentially give Jones an ultimatum: join in the letter or leave the firm. Jones, who has thoroughly alienated Adle Bart, does not believe he has any immediate alternative job opportunities.
Social, Policy, and Ethical Considerations
What are the competing social interests at stake in this controversy?
Explanation
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Case summary:
Mr. CA and Mr. LB formed ...
Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts
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