Top firm is entitled to seek damages after partners switched to rival
One of Hong Kong's most prestigious law firms, Deacons, fell victim to 'below the belt' behaviour when two of its senior lawyers left to join a rival American-based firm, a judge ruled yesterday.
Deputy High Court Judge David Gill ruled Deacons was entitled to seek damages after White & Case Limited Liability Partnership, in America, and its Hong Kong arm, White & Case, had encouraged Deacons lawyers Mark Gerard Fairbairn and Edward Anthony Cairns to breach their contracts and contact Deacons' clients to join them in the move.
The judge had also found Mr Fairbairn, a capital partner, and Mr Cairns, a salaried partner, had failed to comply with their obligations and duties to Deacons as partners.
He further found the pair had passed on confidential information and had tried to persuade clients to transfer to White & Case.
Deputy Judge Gill said: 'This all amounts to a cynical disregard for the rights of Deacons, putting profit before honour. It is below the belt.'
The Court of First Instance heard the two lawyers were seniors in Deacons' finance and insolvency sub-department, and the team all handed in their resignations on June 11 last year. The department brought in $40 million in fees in 2001 and had clients such as Standard Chartered, BNP Paribas, Peregrine Capital and KPMG.