Yee

A lawyer joined a law firm and signed a partnership agreement in which he acknowledged that the firm had invested a substantial amount of money in generating business and that the firm would lose money if he left and took clients with him, and agreed that if he did leave and take clients he would make payments to the firm according to a formula spelled out in the partnership agreement. The lawyer left and took more than two dozen clients with him, then refused to satisfy his obligation to his former firm. The firm sued the lawyer and won, and the lawyer now appeals, claiming his promise to pay is a prohibited fee splitting agreement and that his contract is otherwise unenforceable. We hold that the rules prohibiting fee splitting do not apply to agreements between a partner and his own law firm and affirm the judgment.

FACTS

A.

Anderson, McPharlin & Connors (AMC), a law firm, was formed in 1948. Steven R. Yee, a lawyer, became an AMC partner in 2001, at which time AMC and Yee executed a partnership agreement that included the following provision: “Section 15.8. Liquidated Damages for Open Files. The partners mutually acknowledge that the client relationships of the…