In a notable twist of events for the legal fraternity, an intellectual property partner from a boutique law firm in New Jersey has suffered a significant setback after an over $800,000 judgment against him was largely upheld by a state appeals court. The attorney, Andrew Zidel, allegedly breached his fiduciary duty towards his partners, which has resulted in this severe financial consequence.
Zidel apparently attempted to extract business for a new firm during a business expedition that was funded by his former firm, Lerner David LLP, based in Cranford. In violation of common legal ethics and conduct, the court discovered Zidel was actively soliciting clients away from his current partnership and into his new endeavor.
The court’s decision was up in the air due to a lack of clarity in the written partnership agreement. However, ultimately, the ruling went against Zidel, stating he shouldn’t get a payout of his ownership stake, essentially implying a certain degree of penalty for his actions. This case serves as a reminder of the duties partners owe each other in law firms, and the consequences of violating these obligations.
As we dissect the court’s decision, it’s evident that business decisions in the legal world can have their pitfalls when not operated under the right ethical light.
For more details about this case, please visit the original coverage on
Bloomberg Law.