Lawyer is reprimanded for including noncompete provision in associate's contract
An Indiana lawyer has been reprimanded for including a noncompete clause in an associate’s contract and telling clients after firing the associate that he would be taking over their cases.
Lawyer Frank Hanley was reprimanded Nov. 6. The Legal Profession Blog noted the case and linked to the order (PDF).
According to the stipulated facts, Hanley hired the associate in 2006 to work in his law office, which focused on Social Security disability cases. A noncompete clause in the associate’s employment agreement said he would be barred from practicing disability law for two years if his employment was terminated.
Hanley fired the associate in 2013. Afterwards, Hanley sent letters to the associate’s clients saying he would be taking over the representation. The letters included forms that could be filled out to replace the associate with Hanley as their counsel.
Hanley never sought to enforce the noncompete clause.
The parties agreed that Hanley violated two ethics rules. One generally bars employment agreements that restrict a lawyer’s right to practice after termination of the employment relationship. The other requires explaining matters to clients so they can make an informed decision about the representation.
