Clive Greenwood looks at whether restrictive covenants will survive when a law firm’s partners vote to become a limited liability partnership
The goodwill of a partnership is one of its most valuable assets and is commonly protected by restrictive covenants which, among other things, seek to prevent former partners from interfering in the relationships between the partnership and its customers and staff. But, can restrictive covenants in a partnership agreement be enforced against a former partner who retired from the partnership before its conversion to a limited liability partnership (LLP)? Possibly not, according to a recent decision of the Court of Appeal. It will depend upon the precise wording of the restrictive covenants in the partnership agreement.
