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Corporations Keyed to O’Kelley
Starr v. Fordham
Citation:
648 N.E.2d 1261 (1995)Facts
The plaintiff was a partner in the Boston law firm Foley, Hoag & Eliot. The plaintiff was actively seeking to leave the firm in early 1984. During this time, the founding partners were also partners at Foley Hoag. They agreed that they would withdraw from Foley Hoag in early 1985 to establish a new law firm with another established Boston attorney, Frank W. Kilburn. The plaintiff withdrew from Foley Hoag on March 1985. Prior to executing the partnership agreement, the plaintiff informed Fordham that certain provisions in the agreement disbursed him. Fordham dismissed the plaintiff’s concerns, telling him to take it or leave it. The founding partners each executed the partnership agreement and the plaintiff also signed. In August 1985, Kilburn withdrew from the firm. Subsequently, the firm assumed the name Fordham & Starrett. The founding partners had divided the firm’s profits equally among the partners. When the plaintiff withdrew, the founding partners determined the plaintiff’s share of the firm’s profits to be 6.3% of the total profits. The founding father assert that they did not violate their fiduciary duties and the implied covenant of good faith and fair dealing when they allocated to the plaintiff only 6.3% of the firm’s profits for 1986.
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