An Australian Supreme Court judge has ruled that the eight partners who quit Herbert Smith Freehills (HSF) in September 2016 to join White & Case will be able to join immediately, but are prohibited from soliciting their former client bases.
Justice Robert McDougall of the New South Wales Supreme Court found that until a permanent order was made, certain clauses within HSF’s partnership deed which forbid the partners from joining White & Case were unreasonable. Namely, provisions which disallowed the former partners from practising within ‘restricted areas’ surrounding HSF’s offices and joining a ‘specified competitor’ within six months of resignation. However, the judge upheld HSF’s contention that the exiting partners should be barred from contacting their previous clients.
