Need advice on creating proposal for separating from my firm where I am a partner and have practiced 20 years. Leaving to solo a boutique practice. Would ideally like to preserve the referral relationship for matters outside my practice area but don’t know if that’s possible. Timeline? Negotiation points? New firm will be 100% ready in 2-4 weeks.

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Will depend on your firm’s partnership deed, and whether or not it is a friendly separation. The partnership deed may require certain notice periods before departure and may include obligations (negative and positive) in relation to your communications with clients and staff. As a partner, you owe fiduciary responsibilities to your current firm, which will prohibit you from seeking to retain referred clients. Those you have brought to the form yourself are a different matter. If your partnership deed is silent on how communications are to be managed, you will need to give some thought to whether you communicate with referred clients and, if so, how to do so in keeping with your fiduciary obligations to your current firm. If the separation is friendly, and your practice area is niche, will the firm you are departing be likely to refer work to you after the separation? If your practice area is one your existing firm can meet after your departure, then you should not seek to poach referred clients for the period set out in your partnership deed (assuming that period isn’t outrageous). What is outrageous is something you will need to research in your jurisdiction. Note that you still owe duties too referred clients - of your existing firm does not communicate your departure with them and arrange for existing matters to be handed over in a timely manner, then, in my view, you should be entitled to tell the client that you are departing. It is better if you and your existing firm’s management agree a protocol for communications. As far as negotiations- you will be constrained by your partnership deed and your fiduciary obligations as a partner. If you have worked for years with a referred client, and undertake business development activities with them, you might have an argument that they are now “your” client in your particular practice area. If other partners in your firm do work for the client in the same space, you might be pushing your luck on that argument… As I said before, if you can agree protocols with management, it will be better for everyone. The last thing you want when trying to get your new business up and running is a lawsuit with your previous firm. Good luck!

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