The legal battle between Quinn Emanuel Urquhart & Sullivan and a group of breakaway partners has presented challenges to the judge presiding over the case, including interpretation of a contract the defectors signed agreeing to forfeit a portion of their legal fees after they leave the firm—an arrangement that is prohibited under New York’s attorney ethics rules.

In a Wednesday hearing, Manhattan Supreme Court Justice Saliann Scarpulla also expressed concern that allowing Quinn Emanuel to continue the firm’s dispute with 10 lawyers who departed earlier this year to form Selendy & Gay through arbitration in California would leave the case before an out-of-state arbitrator or judge who doesn’t understand New York’s strong public policy stance against “forfeiture for competition” arrangements.

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