Pochopien v. Marshall, O'Toole, Gerstein, Murray & Borun

733 N.E.2d 401, 315 Ill. App. 3d 329, 247 Ill. Dec. 937, 2000 Ill. App. LEXIS 546
CourtAppellate Court of Illinois
DecidedJune 30, 2000
Docket1-99-2871
StatusPublished
Cited by4 cases

This text of 733 N.E.2d 401 (Pochopien v. Marshall, O'Toole, Gerstein, Murray & Borun) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pochopien v. Marshall, O'Toole, Gerstein, Murray & Borun, 733 N.E.2d 401, 315 Ill. App. 3d 329, 247 Ill. Dec. 937, 2000 Ill. App. LEXIS 546 (Ill. Ct. App. 2000).

Opinion

JUSTICE HARTMAN

delivered the opinion of the court:

Plaintiff Donald J. Pochopien appeals from the circuit court’s order granting defendant Marshall, O’Toole, Gerstein, Murray & Borun’s (Marshall) motion to dismiss with prejudice his verified complaint for declaratory judgment and other relief against Marshall, an Illinois law firm, involving alleged violations of Marshall’s partnership agreement (Agreement).

Pochopien raises as issues on appeal whether the circuit court erred in granting Marshall’s section 2 — 619 motion (735 ILCS 5/2— 612 (West 1996)) and dismissing (1) count I of Pochopien’s verified complaint with prejudice because: (a) section 8 — 5 of the Agreement allegedly imposes a financial disincentive for Pochopien to practice law at any firm other than Marshall; and (b) Marshall selectively enforced paragraph 8 — 5 against Pochopien; and (2) dismissing count II of Pochopien’s verified complaint with prejudice where Marshall allegedly waived its right to enforce paragraph 8 — 5 against Pochopien.

Pochopien’s two-count verified complaint alleged facts which follow. Pochopien is an attorney licensed to practice law in Illinois. Marshall is an Illinois partnership with its principal place of business in Chicago, Illinois. On January 1, 1995, Pochopien and Marshall entered into a written contract entitled “Partnership Agreement of Marshall, O’Toole, Gerstein, Murray & Borun,” a copy of which was attached to the complaint. Pochopien performed legal services for Marshall’s clients pursuant to the terms of the Agreement. During that time Pochopien made various contributions totaling some $71,477 to the capital partnership account, as defined in article VII, paragraph 7 — 2, of the Agreement. 1

On July 2, 1997, Pochopien gave Marshall 30 days’ notice in writing of his intended withdrawal from the Marshall partnership in accordance with paragraph 8 — 2 of the Agreement.

After Pochopien’s withdrawal from the partnership, Marshall withheld from him about $47,680, for the year following his departure. This amount represented a deduction for Pochopien’s share of Marshall’s lease obligation, which Marshall continues to withhold, on the basis that paragraph & — 5 of the Agreement allows this reduction in the amounts owed to Pochopien from his capital account. Pochopien made a demand upon Marshall to pay him the full amount of his capital account, which Marshall refused. Pochopien received distributions from Marshall on August 12, 1997, and September 12, 1997. No deduction for his proportionate share of the lease for Marshall’s office space for the month of August 12, 1997, was made. Pochopien alleges that paragraph 8 — 5 is void because it contravenes Rule 5.6 of the Illinois Rules of Professional Conduct (Rule 5.6) (134 Ill. 2d R. 5.6), as well as the public policy underlying Rule 5.6. 2

Pochopien further alleged that Marshall selectively enforced paragraph 8 — 5 against attorneys withdrawing to practice law at other law firms, but not against attorneys moving to corporations (x.e., prospective clients), using paragraph 8 — 5 as a restriction in fact of an attorney’s right to practice law and as a disincentive for Pochopien to practice law at any firm other than Marshall. Pochopien also alleged that, in about February 1994, Marshall waived enforcement of paragraph 8 — 5 against departing partner Lewis Gruber, who joined Hyseq, Inc., and in February or March 1998, Marshall allegedly waived enforcement of paragraph 8 — 5 against departing partner Kevin Hogg, who joined Proctor and Gamble. Also, in about 1998, Marshall allegedly waived enforcement of paragraph 8 — 5 against departing partner Cynthia Schaller, who ceased practicing law in order to enter divinity school.

In count I of his complaint, Pochopien requested that the circuit court declare his and Marshall’s rights and liabilities pursuant to the Agreement; enter a finding that paragraph 8 — 5 of the Agreement violates Rule 5.6 and is void and unenforceable; enter an award of money damages in his favor against Marshall in an amount equal to the amount of his entire capital account without any deduction or reductions; enter an award of interest on any judgment entered in his favor against Marshall pursuant to section 2 — 1303 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 1303 (West 1996)); and enter an award of costs in his favor against Marshall pursuant to section 2 — 701 of the Code (735 ILCS 5/2 — 701 (West 1996)) and any further relief deemed just and proper.

In count II, Pochopien claimed that Marshall has waived any claim to deduct any amounts under paragraph 8 — 5, through its actions in waiving enforcement of Agreement paragraph 8 — 5 against departing partners Lewis Gruber, Kevin Hogg, and Cynthia Schaller, and through its making distributions to him for August and September without deducting any monies for his proportionate share of the lease for office space for the month of August 1997. Count II sought the same relief requested in count I, except that instead of seeking a finding that Agreement paragraph 8 — 5 violates Rule 5.6 and is void and unenforceable, Pochopien prayed that the circuit court enter a finding that defendant has waived enforcement of paragraph 8 — 5.

On January 6, 1999, Marshall moved to dismiss Pochopien’s verified complaint for declaratory judgment and other relief pursuant to sections 2 — 615 and 2 — 619 of the Code (735 ILCS 5/2 — 615, 2 — 619 (West 1996)) (sections 2 — 615, 2 — 619) with a supporting memorandum. Marshall contended that Agreement paragraph 8 — 5 does not restrict Pochopien’s right to practice law and therefore does not violate Rule 5.6, and affirmative matter establishes that Marshall had not waived or discriminatorily enforced paragraph 8 — 5 as to Pochopien.

Marshall’s motion to dismiss was further supported by the affidavit of Carl Moore, chairman of Marshall’s management committee, who expressly averred: lease payments were withheld from a distribution made to Pochopien on September 17, 1997, and from subsequent monthly distributions; the reason for not deducting Pochopien’s proportionate share of the firm’s lease obligations from his August 1997 and September 12, 1997, distributions is that Marshall was in the process of determining the amount of those obligations and wanted to ensure that he received all amounts to which he was entitled; even after the August 1997 and September 12, 1997, distributions, Marshall retained sufficient amounts in Pochopien’s capital account, plus future collections to which he would be entitled, to meet his lease obligations for one year; and, by making the August and September 12, 1997, distributions, Marshall did not intend to waive or believe it was waiving its right to enforce the lease payment obligations of paragraph 8 — 5.

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733 N.E.2d 401, 315 Ill. App. 3d 329, 247 Ill. Dec. 937, 2000 Ill. App. LEXIS 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pochopien-v-marshall-otoole-gerstein-murray-borun-illappct-2000.