Ruling Puts Heller Partners at Risk; Brobeck Laterals Already Sued

A California appeals court ruling on the responsibilities of departing partners is causing headaches for partners at the dissolved law firm Heller Ehrman.

The 1984 ruling, Jewel v. Boxer, holds that a law firm can recover profits from open cases lost when a partner leaves, the Recorder reports. Heller’s creditors committee cited the Jewel theory in a motion filed last week seeking authority to proceed against the firm’s partners.

Six partners who had jumped to Heller from another dissolved law firm, Brobeck, Phleger & Harrison, are already facing a lawsuit filed by the Brobeck estate, the story says. The complaint filed this week seeks profits from unfinished Brobeck business.