ISBA Ethics Opinions on Restrictions on a Lawyer’s Practice

Opinion 23-05 | Corporate and In-House Counsel | Restrictions on a Lawyer’s Practice
Corporate legal department employment agreement with non-compete

Lawyers offering or making an employment agreement that restricts the right of an in-house lawyer to practice law after termination of employment, such as through a noncompete provision, do not comply with the Illinois Rules of Professional Conduct.
Opinion 23-02 | Division of Fees | Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Shareholder agreement requiring departing lawyer’s new firm to pay former firm portion of fees earned from former firm clients

Under Rule 1.5(e), a law firm may agree to share fees with a retired partner as part of a retirement agreement. However, Rules 1.5(e) and 5.6 bar the firm from requiring that a lawyer or the lawyer’s new firm continue to share fees with the retired partner after the lawyer has left the firm.
Opinion 11-02 | Conflict of Interest | Restrictions on a Lawyer’s Practice
Agreement limiting lawyer's subsequent use of third party consultant's ideas and advice

A conflict of interest would be created between Lawyer’s representation of one client and other similar clients if Lawyer were to sign a confidentiality agreement required by an accounting firm that would prohibit Lawyer from divulging a package of ideas developed by the accounting firm that would reduce the client’s tax obligations. For purposes of the Illinois Rules of Professional Conduct, a lawyer cannot agree to keep confidential interpretations of the law.
Opinion 97-09 | Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Non-compete provision of partnership agreement

Law firm partnership agreement that provides that former partners who compete after withdrawal forfeit a portion of the departure compensation violates the Illinois Rules of Professional Conduct.
Opinion 93-13 | Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Firm employment agreement requiring execution of promissory note as guarantee lawyer shall not compete with firm after termination of relationship
Opinion 91-12 | Law Firm Partnership and Employment Agreements | Restrictions on a Lawyer’s Practice
Employment agreement prohibiting solicitation of former firm clients

ISBA Advisory Opinions on Professional Conduct are prepared as an educational service to members of the ISBA. While the opinions express the ISBA interpretation of the Illinois Rules of Professional Conduct and other relevant materials in response to a specific hypothesized fact situation, they do not have the weight of law and should not be relied upon as a substitute for individual legal advice. For more information, call the ISBA Legal Department at (217) 525-1760 or (800) 252-8908.