Although it is no longer unusual for law firm partners to move from one firm to another and for clients to move with them, these departures still all too often result in disputes, which sometimes end in litigation or arbitration. Partners are ordinarily aware of the rules regarding contractual and fiduciary obligations, but are not always familiar with provisions of the New York Rules of Professional Conduct (the RPC) that address attorney departures. In late 2021, the New York State Bar Association’s Committee on Standards of Attorney Conduct (COSAC) reviewed Rule 5.6, entitled, “Restrictions on Right to Practice,” which addresses partnership and similar agreements that contain restrictions on a departing partner’s right to practice law after termination. This article addresses the November 2021 new Comments to Rule 5.6(a)(1) that the House of Delegates adopted. These Comments are important for law firms and their partners to understand and consider, and may necessitate a review and/or rethinking of law firm agreements, policies, and procedures.

Rule 5.6(a)(1) states:

(a) A lawyer shall not:

(1) participate in offering or making a partnership, shareholder, operating, employment or other similar type of agreement, except an agreement concerning benefits upon retirement, that restricts the right of a lawyer to practice after termination of the relationship ….