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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 11 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On Wednesday, the Second Circuit Court of Appeals put a nail in the coffin of the attempt by Thelen LLP&rsquo;s bankruptcy trustee&nbsp;to claw back fees on work that the firm&rsquo;s former partners took with them to their new firm, Seyfarth Shaw LLP.&nbsp; Here&rsquo;s the <a href="http://www.ca2.uscourts.gov/decisions/isysquery/ba766573-77e4-4784-9170-03a3e9434741/1/doc/12-4138_opn.pdf#xml=http://www.ca2.uscourts.gov/decisions/isysquery/ba766573-77e4-4784-9170-03a3e9434741/1/hilite/">opinion</a>.
The Second Circuit ruling came after it asked the New York Court of Appeals to decide whether&nbsp;the trustee had a property interest in the fees, under the unfinished-business doctrine.&nbsp; The state court unanimously answered &ldquo;No.&rdquo;&nbsp; We posted on that ruling <a href="https://www.thelawforlawyerstoday.com/2014/07/unfinished-business-doctrine-falls-in-n-y-no-jewel-claims/">here</a>.&nbsp;&nbsp;
In its brief opinion, the Second Circuit quoted the state court&rsquo;s ruling, saying
<blockquote>
Under New York law, the unfinished business doctrine does not apply to a dissolving law firm&rsquo;s pending hourly fee matters, and ... a partnership does not retain any property interest in outstanding hourly fee matters upon the firm&rsquo;s dissolution.
</blockquote>
The Second Circuit&rsquo;s decision&nbsp;follows the&nbsp;<a href="http://docs.justia.com/cases/federal/district-courts/california/candce/3:2014cv01236/275545/24/0.pdf">California district court&rsquo;s refusal</a> last month to allow the administrator for the bankrupt Heller Ehrman firm to claw back profits from former partners.&nbsp;&nbsp;That ruling is on appeal to the Ninth Circuit Court of Appeals.
Seyfarth Shaw&rsquo;s&nbsp;successful challenge to the&nbsp;unfinished-business doctrine in&nbsp;New York&nbsp;may be the beginning of the end of a line that began with&nbsp;the 1984&nbsp;<a href="http://law.justia.com/cases/california/calapp3d/156/171.html">Jewel v. Boxer </a>case, which first established the concept.
Thompson Hine was co-counsel with&nbsp;Seyfarth Shaw LLP in this case and in the New York Court of Appeals.

Thelen update: 2nd Circuit says former partners can keep hourly fees

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