SAN FRANCISCO — The American Bar Association on Monday asked the U.S. Court of Appeals for the Ninth Circuit to embrace a position that would free law firms to take on partners from failing competitors without risking bankruptcy clawback suits.
The ABA weighed in with an amicus brief in an appeal over so-called “unfinished business” claims brought by the bankruptcy estate of failed law firm Howrey LLP. The 28-page brief argues that it would “inhibit client choice” to allow bankruptcy trustees to sue for profits from unfinished matters that partners take with them to their new firms.
