Heb is the managing partner of Heb, Fairey and Hallam, a partnership law firm in downtown Vancouver. The firm has three partners (Heb, Fairey and Hallam), and about 10 other lawyers that work at the firm as employees.

For many years, Heb has been the "face" of the firm. He (Heb) has recruited the majority of the other lawyers working at the firm, brought in the new clients, and made the financial decisions for the firm.

Recently, Heb had run into big financial trouble following his 4^thdivorce.Heb felt that he was making most of the firm's money, but had to split partnership profits with the other two partners under the terms of their Partnership Agreement.Heb therefore decided that he would do the next big law project that came along by himself out of his own home- and not involve Heb, Fairey and Hallam in the project.

A week later, Majestic Bank approached Heb about the partnership doing a big project that would pay $500,000 in legal fees.Heb told the bank management team "I can do this by myself- I will do the work and bill you privately- not on behalf of the firm".Since the bank liked the work Heb did, they agreed to this arrangement.

Heb worked at home on weekends, and completed the work for Majestic Bank, and received a $500,000 payment, which he used to finance his divorce settlement.

Three months later, Fairey and Hallam learned what Heb had done, and asked Heb to pay each of them 1/3 of the $500,000.Heb says the money is his, and he doesn't have to share- he says the work was done by him, and has nothing to do with the law partnership.

Fairey and Hallam decide to sue Heb for their share of the $500,000.Will they be successful?In answering this question, be sure to use the IRAC case analysis method.