Opinion ID: 4510979
Heading Depth: 1
Heading Rank: 2

Heading: Short Answers

Text: We answer the above questions as follows: (1) We hold that hourly-billed client matters are not “property” of the law firm. A client has an almost “unfettered right” to choose or to discharge counsel. In re Mance, 980 A.2d 1196, 1203 (D.C. 2009). Therefore, a law firm has no more than a “unilateral expectation,” rather than a “legitimate claim of entitlement,” to future fees earned from continued work on hourly-billed client matters. Bd. of Regents of State Colleges v. Roth, 408 U.S. 564, 577 (1972). (2) After a partner leaves the law firm (disassociates), the partner owes no continued duty to the former law firm to account for new profits earned on hourly-billed client matters that started at the former firm. A dissociated partner has a limited duty of loyalty to the former firm only “with regard to matters arising and events occurring before the partner’s dissociation.” D.C. Code § 29606.03(b)(3) (2013 Repl.). This limited duty requires a dissociated partner to remit profits earned on work performed prior to the partner’s dissociation, but does not include profits earned from work performed subsequent to the partner’s dissociation. (3) Since a dissociated partner has no duty to account for profits earned after the partner leaves the firm, we need not address this question. (4) A dissolved law firm has no interest in profits earned on hourly-billed client matters following dissolution. A dissolved law firm is only entitled to proceeds earned as part of the firm’s “winding up” process, which include acts that preserve DIAMOND V. HOGAN LOVELLS US 5 partnership rights and property, prosecute and defend actions, settle or transfer partnership business, or distribute assets. “Winding up” does not encompass new business or work done on former client matters after dissolution by former partners. The dissolved partnership can no longer undertake work on these matters after dissolution. See D.C. Code § 29-608.03(c) (2013 Repl.).