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Trevor Bohatch - TrevorBohatch. Reesie Bohatch - RBohatch. Jackie Bohatch - jaxbohatch. We fail to see how such an approach encourages compliance with ethical rules more than the approach we adopt today. Furthermore, the amici's position is that a reporting attorney must be in good faith, not that the attorney must be right.
In short, Justice Hecht's. The concerns of the amici are best addressed by a rule that clearly demarcates an attorney's ethical duties and the parameters of tort liability, rather than redefining whistleblower. We emphasize that our refusal to create an exception to the at-will nature of partnerships in no way obviates the ethical duties of lawyers.
Such duties sometimes necessitate difficult decisions, as when a lawyer suspects overbilling by a colleague. The fact that the ethical duty to report may create an irreparable schism between partners neither excuses failure to report nor transforms expulsion as a means of resolving that schism into a tort.
We hold that the firm did not owe Bohatch a duty not to expel her for reporting suspected overbilling by another partner. The Court holds that partners in a law firm have no common-law liability for expelling one of their number for accusing another of unethical conduct. The dissent argues that partners in a law firm are liable for such conduct. Both views are unqualified; neither concedes or even considers whether always and never are separated by any distance.
I think they must be. The Court's position is directly contrary to that of some of the leading scholars on the subject who have appeared here as amici curiae. The Court finds amici's arguments not without some force, but rejects them completely. I do not believe amici's arguments can be rejected out of hand. The dissent, on the other hand, refuses even to acknowledge the serious impracticalities involved in maintaining the trust necessary between partners when one has accused another of unethical conduct.
In the dissent's view, partners who would expel another for such accusations must simply either get over it or respond in damages. The dissent's view blinks reality. The issue is not well developed; in fact, to our knowledge we are the first court to address it. It seems to me there must be some circumstances when expulsion for reporting an ethical violation is culpable and other circumstances when it is not.
I have trouble justifying a partner firm's expulsion of a partner for reporting overbilling of a client that saves the firm not only from ethical complaints but from liability to the client. But I cannot see how a five-partner firm can legitimately survive one partner's accusations that another is unethical.
Between two such extreme examples I see a lot of ground. This case does not force a choice between diametrically opposite views. Here, the report of unethical conduct, though made in good faith, was incorrect. That fact is significant to me because I think a law firm can always expel a partner for bad judgment, whether it relates to the representation of clients or the relationships with other partners, and whether it is in good faith.
I cannot, however, extrapolate from this case, as the Court does, that no law firm can ever be liable for expelling a partner for reporting unethical conduct. Accordingly, I concur only in the Court's judgment.
Footnote 1 Professors Richard L. Wolfram Cornell Law School offered their analyses as amici curiae, concluding that self-gain is not the sole element of a breach of fiduciary duty among partners. Holman v. Coie facts [edited; deletions not noted]: Plaintiffs complained against their former law partners for their expulsion from the firm, alleging damages resulting from a breach of their partnership agreement, breach of trust, and conspiracy; also against The Boeing Company hereinafter referred to as Boeing for alleged tortious interference with plaintiffs' contractual relationship with their former law partners, and conspiracy.
Plaintiff Francis Holman joined the defendant law firm, of which his father was a senior partner, in He was made a partner in and has worked almost exclusively upon legal matters for Boeing, a firm client. Plaintiff William M. Holman joined the firm in , and became a partner in During his early tenure he had done legal work for Boeing, but he had not done so for many years preceding the plaintiffs' expulsion from the law firm.
Plaintiffs' father retired from the law firm in , after a distinguished legal career. Subsequent to plaintiffs' association with the law firm, certain members left the firm to take executive positions with several of the corporate clients of the law firm, including Boeing.
William M. Allen, who was a senior partner in the law firm at the time Francis Holman joined it, was the president of Boeing at the time of plaintiffs' expulsion. William Holman had, over a period of time, raised questions with the executive committee regarding the inadequacy of the legal rates which the firm charged the Boeing Company. He had also questioned other fee structures and the amount of unchargeable time accumulated by several of the senior partners for other than legal work.
There was testimony by another member of the executive committee that, prior to the admission of William Holman to the executive. However, after admission of the Holmans, there appeared to develop a polarization among the committee, with the Holmans on one side and the remainder of the committee on the other. In , with the concurrence of the firm, Francis Holman ran for, and was elected to, the State House of Representatives. In , he ran for, and was elected to the Washington State Senate, without seeking the firm's approval-but no objection was made by any member of the firm.
In , his percentage of income from the partnership business was reduced, because of the amount of time he was spending on legislative matters and in legislative service. There is testimony that in March, , several of the officers of Boeing discussed, with several members of the executive committee, a newspaper article written by a political columnist, which characterized Senator Holman as a tax reform maverick, and praised him for his independence from his client, principally Boeing.
In mid-April, , Francis Holman made a speech before the State Senate regarding personal property tax legislation which was then before the Senate. There may have been some misstatement in the speech or in the reporting of it; in any event, the speech apparently served to aggravate several of the top officials of Boeing. The speech was not recorded; it was extemporaneous; consequently, there are several versions of exactly what was said.
In any event, the following day, upon the request of another senator, one area of comment made during the prior day's speech was clarified by Senator Holman. There was also an allegation by one Boeing executive that Francis Holman had exploited his attorney-client relationship with Boeing by using some of the information obtained as its attorney in commenting upon this legislation.
In April, preceding the speech, the president of Boeing advised the managing partner of the law firm that they desired Francis Holman to do no further legal work on their behalf.
This had not been conveyed to Francis Holman, who was performing his legislative duties in Olympia. The room was rented by Boeing on at least a semi-permanent basis.
Meals ordered by the members present on May 7 were charged to Boeing, a fact learned by the plaintiffs during discovery proceedings; after that discovery, the law firm reimbursed Boeing.
Francis Holman was not notified of the meeting; William Holman had been informed earlier that there would be no executive committee meeting on May 7. The seven partners present discussed in detail whether the Holmans should be expelled from the law firm; the record shows the consensus favored expulsion, although neither a formal vote nor formal action was taken. The legislative session ended May 12, Francis Holman returned home the next day about 6 p.
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