Question
Regarding rights and duties between Principal and Agent, what is your advice in the following scenarios? A medium-size law firm employed Jane Smith as an
Regarding rights and duties between Principal and Agent, what is your advice in the following scenarios?
A medium-size law firm employed Jane Smith as an associate attorney seven years ago. During that time she came to work almost exclusively with the Acme Corporation, a major client of the firm. The work nominally was done under the supervision of one of the senior partners of the firm, who signed the opinion letters, attended the closings, and so forth, but actually was done by Smith, and the officers of Acme knew this.
About three months ago Smith inquired about partnership status for herself and was curtly informed, "We don't respond to associates' requests about such matters." Offended, Smith decided to quit. Before quitting, she telephoned several of the key officers of Acme with whom she had worked extensively, told them she was leaving to enter her own practice, and said, "I would be delighted, of course, to continue handling your work." The officers decided to keep their business with her and accordingly withdrew their account from the firm. One of the partners of the firm has come to you for advice as to what, if anything they can do about this.
- What is your advice?
- What difference would it make if Smith had first left the firm and then made her telephone calls to the Acme officers?
- Would it affect your analysis of the above facts if Smith had brought the client in the firm in the first place?
- What difference would it make if, instead of only one person, five associates quit together to establish their own practice, the other facts and variations remaining the same?
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