RULE 5.6: RESTRICTIONS ON RIGHT TO PRACTICE
A lawyer shall not participate in offering or making:
(a) a partnership
or
, shareholders, operating, employment
, or other similar type of agreement that restricts the right of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement; or
(b) an agreement in which a restriction on the lawyer's right to practice is part of the settlement of a
client controversy
between private parties.
Comment
[1] An agreement restricting the right of
partners or associates
lawyers to practice after leaving a firm not only limits their professional autonomy but also limits the freedom of clients to choose a lawyer. Paragraph (a) prohibits such agreements except for restrictions incident to provisions concerning retirement benefits for service with the firm.
[2] Paragraph (b) prohibits a lawyer from agreeing not to represent other persons in connection with settling a claim on behalf of a client.
[3] This Rule does not apply to prohibit restrictions that may be included in the terms of the sale of a law practice pursuant to Rule 1.17.
Model Rule 5.6
Reporter's Explanation of Changes
TEXT:
1. Paragraph (a): Add references to shareholders, operating and other similar types of agreements
The reference to a partnership agreement is underinclusive because lawyers also practice in professional corporations and professional limited liability companies.
2. Paragraph (b): Substitute "client controversy" for "controversy between private parties"
This change clarifies that the Rule applies to settlements not only between purely private parties, but also between a private party and the government. See ABA Ethics Opinion 394.
COMMENT:
[1] "[P]artners and associates" has been replaced with "lawyers" in recognition that lawyers associate together in organizations other than traditional law firm partnerships.