Question

Nancy J. Gleason and Douglas G. Shreffler, two partners in the law firm, began investigating the possibility of establishing a new, separate law firm. They decided to take preliminary steps to form that firm and, within two months, had located office space, ordered furniture and equipment, and initiated a banking relationship with the Harris Bank. One month later, on December 31, Gleason and Shreffler resigned from the partnership and started the GMS law firm. During her 13 years working at the partnership, Gleason was the primary person handling the firm’s Allstate Insurance Company account. While still working for the partnership, Gleason arranged to have the Allstate cases that were with the partnership reassigned to Gleason’s new firm. Did Gleason breach a fiduciary duty owed to the partnership? Explain.

Answer 1

There was tortious interference in terms of the contractual relationships that Gleason and Shreffler shared with their client, Allstate Insurance in a manner that made the Law Firm lose the principal client to the new Firm as started by the former employees. There was further a prospective of economic advantage involved in the case too. Further, these two former members owed fiduciary obligation to the firm as well.