Facts Carl Adle and Louise Bart formed a law firm as partners, and Anne Lily, Ma
ID: 427445 • Letter: F
Question
Facts Carl Adle and Louise Bart formed a law firm as partners, and Anne Lily, Marvin Thomas, and Tim Jones joined the newly formed firm of Adle & Bart as associates (nonpartner employees). After about five years, Lily, Thomas, and Jones became disenchanted with the law firm and decided to form their own, to be called Lily, Thomas & Jones. Lily and Thomas suggested to Jones that they contact approximately five hundred of Adle & Bart’s current clients. Lily and Thomas had prepared a model letter to inform clients about the new law firm (Lily, Thomas & Jones) and to encourage them to leave Adle & Bart and to become clients of the new firm. The letter also indicated that Lily, Thomas & Jones would offer legal services far better than those of Adle & Bart: billing rates would be more reasonable, service more prompt, and legal representation more effective and successful. The reference to success was aimed, in part, at three large clients who recently lost lawsuits under Adle & Bart representation. Although the losses had not resulted from malpractice or mishandling by Adle & Bart, Lily and Thomas knew that significant amounts of money had been at issue and that the clients were sensitive about the results of the lengthy litigation. The letter included two postage-paid form letters for the prospective client to sign and mail. One form letter was addressed to Adle & Bart, informing them of the client’s desire to discontinue the client-attorney relationship and requesting the firm to forward all files to Lily, Thomas & Jones. The other form letter, addressed to Lily, Thomas & Jones, requested representation. Jones is reluctant about the proposed mailing. Lily and Thomas, in turn, argue that their new firm is not doing as well as they expected. They essentially give Jones an ultimatum: join in the letter or leave the firm. Jones, who has thoroughly alienated Adle & Bart, does not believe he has any immediate alternative job opportunities. Social, Policy, and Ethical Considerations 1. Should Jones agree to the proposed mailing? 5. In what manner,if at all, should the law protect existing businesses from competition? Under what circumstances might competition become unfair, and how should laws be tailored to deter unfair practices? 6. Should Jones be concerned about the comparisons the letter makes between the new firm and Adle & Bart?
Explanation / Answer
Definitely it in any circumstance Jones should not agree to propose the specific mailing. Lily and Thomas were v directly looking on to the sensitive information from Adle & Bart’s legal firm. This is unethical and any of the employee of the organisation should not use any specific information from the previous employer to set up his own company and to contact the customers on the basis of getting clients from the previous employer.
Yes this type of approach has specific legal limitation. If the employer,Adle & Bart’s legal firm as implemented a court regarding limitation of the working of any employee for a competitor or setting up a similar business after leaving the job would be the most appropriate way to stop the employees for forming a new company and compete against the existing for which they work for. If the employee does not follow the guidelines then definitely specific incident could be enforced in to the court by the employer.
This type of competition become unfair when current employee used information from the previous employer for own benefit and sell this information to the competitors for getting the benefit or set up their own company for stealing the customers and using previous employer data for getting profits from the same market.
Comparison between the old and new farm is also an ethical problem undefined organisation should directly provoke any individual to leave any specific firm and to join your firm. This type of approach leave a negative impact on the customer as well as on the society of the specific industry in which the companies operating. Jones should be concerned by the specific letter which is sent to the clients.
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