Adler v. Rosenthal

CourtConnecticut Appellate Court
DecidedMarch 15, 2016
DocketAC36593
StatusPublished

This text of Adler v. Rosenthal (Adler v. Rosenthal) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adler v. Rosenthal, (Colo. Ct. App. 2016).

Opinion

****************************************************** The ‘‘officially released’’ date that appears near the beginning of each opinion is the date the opinion will be published in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the beginning of all time periods for filing postopinion motions and petitions for certification is the ‘‘officially released’’ date appearing in the opinion. In no event will any such motions be accepted before the ‘‘officially released’’ date. All opinions are subject to modification and technical correction prior to official publication in the Connecti- cut Reports and Connecticut Appellate Reports. In the event of discrepancies between the electronic version of an opinion and the print version appearing in the Connecticut Law Journal and subsequently in the Con- necticut Reports or Connecticut Appellate Reports, the latest print version is to be considered authoritative. The syllabus and procedural history accompanying the opinion as it appears on the Commission on Official Legal Publications Electronic Bulletin Board Service and in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be repro- duced and distributed without the express written per- mission of the Commission on Official Legal Publications, Judicial Branch, State of Connecticut. ****************************************************** LAWRENCE H. ADLER v. EDWARD M. ROSENTHAL (AC 36593) Keller, Mullins and Schaller, Js. Argued October 19, 2015—officially released March 15, 2016

(Appeal from Superior Court, judicial district of Harford, Hon. Jerry Wagner, judge trial referee [motion to dismiss]; Vacchelli, J. [request to amend complaint; judgment].) Hugh D. Hughes, for the appellant-appellee (defendant). William B. Wynne, with whom, on the brief was Heidi Zultowsky, for the appellee-appellant (plaintiff). Opinion

KELLER, J. In this breach of contract action stem- ming from an agreement to form a law partnership, the defendant, Attorney Edward M. Rosenthal, appeals from the judgment of the trial court, following a hearing in damages, rendered in favor of the plaintiff, Attorney Lawrence H. Adler, and awarding him damages in the amount of $42,447.72, plus costs.1 On appeal, the defen- dant claims that the court (1) improperly denied his motion to dismiss the plaintiff’s action, and (2) improp- erly awarded the plaintiff damages for lost profits. The plaintiff filed a cross appeal, in which he claims that the court erred by (1) not allowing him to amend his complaint to include a claim for paralegal time expended addressing the defendant’s failure to join their contemplated law partnership, (2) failing to award him damages for time that he expended addressing the defendant’s failure to join their contemplated law partnership, and (3) failing to award him damages for the cost he incurred by hiring an associate to replace the defendant. With respect to the defendant’s appeal, we reverse the court’s judgment in part, with respect to its award of lost profits, and remand the case to that court with direction to vacate that portion of its damages award. We affirm the judgment of the trial court in all other respects, including with respect to the plaintiff’s cross appeal. The following facts, as found by the trial court, and procedural history inform our review of the present appeal. In 2008, the plaintiff left his partnership position at a law firm and began to explore the possibility of starting his own law firm. In the plaintiff’s efforts to start a new firm, he met with the defendant for the first time on July 14, 2008. During this meeting, the plaintiff proposed to the defendant that they enter into a partner- ship to start their own law firm. The defendant indicated that he was interested, but he did not formally agree to enter into a partnership at that time. In the following weeks, the plaintiff and the defendant communicated with each other and met several times to discuss the new law firm. Additionally, the plaintiff and the defen- dant looked for potential office space and discussed other matters with each other related to their own prac- tices, including expected income, draws, and expenses. On July 29, 2008, the plaintiff and the defendant met in Bushnell Park in Hartford and signed a one page ‘‘Prelim[in]ary Partnership Agreement’’ (preliminary agreement) to enter into a partnership in the business of practicing law. Pursuant to this preliminary agreement, the plaintiff and the defendant agreed to join their practices and to form a law firm called Adler Rosenthal, LLC, or some similar name. The plaintiff would hold an 80 percent interest in the firm, and the defendant would hold a 20 percent interest. Each part- ner would bring the files of all of his clients to the firm, and each partner would retain the files of his respective original clients. The plaintiff’s work included mostly contingency cases with some hourly work, and the defendant’s work included mostly contingency cases, as well as representing nursing homes, which he billed hourly. In addition to these clients, the defendant would contribute office furniture and equipment that he already owned, which the new firm would use. The defendant would assist the plaintiff with his contin- gency work. The preliminary agreement provided that the initial draws would be paid weekly, with the plaintiff to receive $250,000 annually and the defendant to receive $110,000 annually. The profits after costs, expenses, loan repayments, and initial draws would be divided in the first year based upon the plaintiff’s 80 percent ownership interest and the defendant’s 20 percent own- ership interest. After the first year, profit sharing would be determined annually on the basis of the ratio of the originated receipts that each partner brought into the firm during the prior year, subject to some adjustments. The preliminary agreement provided that each partner would use good faith and fair dealing with the other partner and the firm, and it further provided that each partner would use his best efforts to bring in new clients and to work adequate hours. The preliminary agreement did not provide a start or end date, and it did not contain a termination provision. Notwithstanding the absence of these provisions, the preliminary agreement did provide as follows: ‘‘In the event [the defendant] separates from the firm for any reason, each partner will retain their own clients (assuming the clients agree) and neither partner will solicit the other’s clients. [The defendant] will be per- mitted to take the property, furniture, computers, etc he came to the firm with. Hourly clients will be billed by and for the firm until the partner taking the file departs. Contingency fee cases will have a lien placed on the recovery with the firm to receive the portion of the fee received based on the ratio of hours the file is worked on while the matter is at the firm as compared with the hours worked on the file after departure. The lat[t]er portion to go to the departing partner. Each paralegal hour will be equal to 1/2 of each attorney hour for this computation.’’ The preliminary agreement also contained a provision stating that each partner prom- ised to enter into a more detailed written partnership agreement ‘‘shortly’’ after their partnership com- menced. On the same day that the plaintiff and the defendant signed the preliminary agreement, they both went to the Office of the Secretary of the State and filed organi- zational documentation for the firm, named Adler and Rosenthal, LLC. The defendant and the plaintiff also agreed that they would begin the partnership on Sep- tember 1, 2008. In preparation for the start date, the plaintiff and his wife, who also worked as the plaintiff’s business manager, began to take steps to establish the new law firm.

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Adler v. Rosenthal, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adler-v-rosenthal-connappct-2016.