Lawyer Had His Name on the Marquee But Wasn’t a Partner, Appeals Court Says
A New Jersey lawyer who had his name on the law firm marquee wasn’t a partner entitled to a payout when he was booted from the law firm, an appeals court has ruled.
A trial judge had awarded lawyer Raymond Nadel $2.9 million, but a New Jersey appeals court reversed, the New Jersey Law Journal reports. Nadel, of the personal injury law firm Starkman & Nadel in Cherry Hill, N.J., was a partner in name only, the court said.
At issue was a 1988 contract that said Nadel had “an interest” in the law firm practice and gave him 25 percent of the firm’s net profits. But the appeals court found several provisions weighing against partnership. Among them: Nadel was not required to make a capital contribution to purchase a share of the practice, he wasn’t required to share in firm losses, and his rights on termination were retention of his files and 75 percent of fees from the files. The agreement also said the practice would continue to be owned by firm founder Morris Starkman, who was given the power to make all management decisions, and called Nadel an independent contractor.
“Nadel was precluded from exercising important rights of a partner and was not required to undertake one of the key obligations of a partner,” the appeals court said. “While he was entitled to share in the net profits of the firm, Nadel undertook no obligation to share in its losses.”
