Buckingham, Doolittle & Burroughs, L.L.P. v. Bonasera

2010 Ohio 1677, 926 N.E.2d 375, 157 Ohio Misc. 2d 1
CourtCourt of Common Pleas of Ohio, Franklin County, Civil Division
DecidedMarch 8, 2010
DocketNo. 09 CVH-01-553
StatusPublished
Cited by4 cases

This text of 2010 Ohio 1677 (Buckingham, Doolittle & Burroughs, L.L.P. v. Bonasera) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckingham, Doolittle & Burroughs, L.L.P. v. Bonasera, 2010 Ohio 1677, 926 N.E.2d 375, 157 Ohio Misc. 2d 1 (Ohio Super. Ct. 2010).

Opinion

Frye, Judge.

I. Introduction

{¶ 1} The model of a lawyer newly called to the bar joining a firm, gaining experience, advancing to partnership, and then enjoying tenure until retirement is — if it ever truly existed — observed less in recent years. In its place are frequent lateral moves by lawyers both within the private bar and in and out of government or business. While the movement of senior-level lawyers with a book of business attracts most attention, even newer lawyers move with frequency. Thus, within three years after law school, more than a third of lawyers responding to a 2004 American Bar Association survey had changed jobs at least once. By seven years in practice, 53 percent of newer lawyers had changed practice settings. Libby, Conflicts Check, Please (2010), 96 A.B.A. J. 24.

{¶ 2} Instability in the legal-services section of the United States economy probably explains some of this; reportedly, 6,800 jobs in 2008, and another 10,300 jobs in the first quarter of 2009, were lost in that segment of the economy. Freeman, Contractual & Ethical Issues of Transition: Lawyer Mobility in an Uncertain Market (2009), 23 Chicago B. Assn. Rec. 30. Today, even partners may confront law-firm agreements that include “a so-called guillotine termination clause that permits termination without cause and without notice,” rather than the traditional paradigm of permanent tenure. Id.

{¶ 3} This suit arose when nearly every senior lawyer in the Columbus office of a well-established multicity law firm became disenchanted, collectively negotiated with several potential firms, and ultimately moved with all the associates and staff to a different multicity firm’s Columbus office. Despite well-documented mobility within the legal profession, case law nationwide is relatively limited and usually addresses only movement by one or a few lawyers, not an entire branch office. Nevertheless, several pretrial motions now require this court to attempt to identify the operative rules.

{¶ 4} Cases like this one are not simple run-of-the-mill commercial disputes. They implicate overarching public values of client access and choice of lawyers that the law protects. Yet, law firms are businesses, not social clubs. Understandably, firms seek protection for financial investments in intangible things like training and marketing lawyers as well as against potential financial loss from [3]*3shoddy practice. Economic issues that must be confronted when an individual— particularly a rainmaker — departs are magnified when a group leaves behind an empty office. Setting aside the hole that departure might leave in a firm’s practice, a group departure may trigger significant long-term lease obligations for those remaining behind (unless personal guarantees or other financial ties like salary holdbacks keep the departing lawyers in the picture, which is part of the story here). Viewed from the perspective of individual lawyers, on the other hand, few options may be perceived to exist. If compensation is deemed inadequate, working arrangements — like billable-hour targets — become too burdensome, or if firm management decides to invest in far-flung new office locations over the objection of those practicing closer to home, moving to a different practice setting may be the only logical choice.

{¶ 5} Essentially the only black-letter rule easily drawn from the case law is that there is an absence of hard lines defining lawyers’ fiduciary duty to their partners and firm when these situations arise. E.g., Graubard, Mollen, Dannett & Horowitz v. Moskovitz (1995), 86 N.Y.2d 112, 629 N.Y.S.2d 1009, 653 N.E.2d 1179, 1183, quoted in Wenzel v. Hopper & Galliher, P.C. (Ind.Ct.App.2002), 779 N.E.2d 30, 38-39; Dowd & Dowd, Ltd. v. Gleason (1998), 181 Ill.2d 460, 476, 230 Ill.Dec. 229, 693 N.E.2d 358.

II. The Factual Record

A. The Parties

{¶ 6} Buckingham, Doolittle & Burroughs is a prominent law firm founded in Akron in 1913. The Columbus office was opened by two lawyers in 1989. By 2007, the firm had five offices (Akron, Boca Raton, Canton, Cleveland, and Columbus) and was among the largest 250 firms in the United States. Twenty-eight lawyers practiced in the Columbus office as of June 1, 2008.

{¶ 7} Organizationally, three related entities collectively composed the firm. Buckingham, Doolittle & Burroughs, L.L.P., is an Ohio-registered limited-liability partnership created pursuant to R.C. 1775.64 (“the partnership”). It had two corporate partners, namely Buckingham, Doolittle & Burroughs, a Legal Professional Association (“BDB Ohio”), and Buckingham, Doolittle & Burroughs, a Florida Legal Professional Association (“BDB Florida”). Suit was brought by the partnership and BDB Ohio (collectively, “Buckingham”).

{¶ 8} Defendants are former employees and shareholders of BDB Ohio, all of whom practiced in Buckingham’s Columbus office.1 They, in turn, joined as [4]*4third-party defendants (realigned in a previous order as plaintiffs) the individual lawyers who managed Buckingham at the time of events now in suit.2 These individuals constituted the board of managers of the top-tier L.L.P. (the partnership) drawn from the firm’s various offices. Unlike the situation in law firms organized as partnerships, in which the K-l tax form records compensation, Buckingham recorded income on W-2 forms. Although Buckingham’s senior lawyers were shareholders, the firm also called them equity partners, while other lawyers with essentially a salary arrangement were casually called income partners (reflecting titles technically belonging only to partnerships). The informality of titles is irrelevant to this decision on motions, and titles are sometimes used interchangeably.

B. Plaintiffs’ Claims

{¶ 9} The amended complaint (filed September 18, 2008) has been reduced in scope through amendment and prior rulings by this court. At present, it sets out causes of action against lawyers in the group that departed for breach of fiduciary duty and duty of loyalty (Count 1), civil conspiracy (Count 2), unfair competition (Count 4), and tortious interference with business relations and prospective contract relations (Count 5). At oral argument on February 26, 2010, counsel for Buckingham conceded that the unfair-competition claim essentially duplicates the claims for breach of fiduciary duty and tortious interference. Accordingly, that claim will be eliminated from the case for trial.

{¶ 10} From the law firm’s perspective, the economic focus of much of this case is the 15-year lease for office space in the Arena District of Columbus that Buckingham undertook in 2001. The building in which Buckingham became a tenant was highly desirable, being among the first developed on the grounds of the old Ohio Penitentiary. Allegedly prompted by the lateral addition of new lawyers, including defendant Thomas Bonasera, a former president of both the Columbus and Ohio State bar associations, Buckingham’s Columbus office expanded in early 2006. At the same time, the lease term was extended by five years until September 2021.

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Bluebook (online)
2010 Ohio 1677, 926 N.E.2d 375, 157 Ohio Misc. 2d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckingham-doolittle-burroughs-llp-v-bonasera-ohctcomplfrankl-2010.