Ethics/Professional Responsibility
Jul. 26, 2014
With the unfinished business rule, breaking up is hard to do
Should partners from a dissolving firm be obligated to pay the dissolved firm's creditors from profits earned on work performed after they leave the dissolved law firm and join a new law firm?
Stanley Mosk Courthouse
Wendy Chang
Judge
Los Angeles County Superior Court
Loyola Law School, 1995
Wendy is based in the firm's Los Angeles office. She is a member of the American Bar Association's Standing Committee on Ethics and Professional Responsibility. She served as an advisor to the State Bar of California's Commission for the Revision of the Rules of Professional Conduct and is a past chair of the State Bar of California's Standing Committee on Professional Responsibility and Conduct. Wendy is a certified specialist in legal malpractice law by the State Bar of California's Board of Legal Specialization.
Should partners from a dissolving firm be obligated to pay the dissolved firm's creditors from profits earned on work performed after they leave the dissolved law firm and join a new law firm? Claiming a right under the "unfinished business rule," bankruptcy trustees for dissolved firms have pursued unfinished business litigation against departing partners and their new firms, seeking to claw back post-dissolution profits as an asset of the dissolved firm's bankruptcy estate.
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