Law Firms

Jury to Decide if Lowenstein Sandler Used Secret Data to Raid Firm

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In a trial that begins today, New Jersey law firm Lowenstein Sandler is fighting a tort claim that it caused the collapse of another, smaller law firm.

The former 45-lawyer law firm Ravin Sarasohn contends Lowenstein raided 15 of its top lawyers after examining secret financial data, including billing records, collection rates and lawyer salaries, the New Jersey Law Journal reports. Lowenstein is New Jersey’s second-largest law firm.

Lowenstein admits it had access to the information but says it didn’t ask to see it and didn’t use the material in making its hiring decisions, according to the story. Ravin Sarasohn’s collapse was for other reasons, Lowenstein contends.

The superior court judge overseeing the case, Donald Goldman of Essex County, said the suit will likely eventually end up in the New Jersey Supreme Court, absent a settlement.

In a pretrial ruling, Goldman said jurors will be able to consider whether Lowenstein’s conduct amounted to a business tort, but they will also be told of special rules and public policy regarding lawyers, according to the story.

“That policy requires that lawyers be allowed the freedom to move from law firm to law firm without fear of incurring contract claims and tort claims,” he said. “It requires that lawyers be allowed to take with them those other lawyers that are reasonably necessary to continue service without disruption to those clients that the attorney hopes will follow him or her to the new firm.”

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