A high-stakes legal battle has emerged between AmLaw 100 firm Polsinelli and its former senior partner, Louis Mastriani, over a disputed $1.5 million contingency fee. Polsinelli alleges Mastriani diverted the funds to his new firm, AMS, in violation of his fiduciary duties. The firm’s complaint accuses Mastriani of making false representations to clients or third parties that enabled the transfer, painting the dispute as both a financial and ethical breach.
The case is emblematic of growing tensions around lawyer mobility. When high-profile partners move between firms, the question of who controls client fees often arises. Here, Polsinelli argues that Mastriani improperly converted firm assets, while Mastriani is likely to counter that client agreements permitted the transfer. The crux lies in whether client consent and contractual obligations were respected during the transition.
For Polsinelli, the lawsuit is about more than money. Protecting client trust and institutional reputation are paramount for firms of its size. Any hint of fee misappropriation risks undermining credibility with clients and future recruits. By suing a former senior partner, Polsinelli signals a strict stance on accountability and ethical boundaries.
From Mastriani’s side, the case will likely focus on interpreting partnership agreements and client contracts. He may argue that the fee was rightfully his, depending on the terms under which the client engagement was structured. The court will need to parse whether fiduciary duties were breached, or if Polsinelli’s claims are an overreach into a client-driven decision.
Ultimately, this case may set an important precedent for how client funds are handled when attorneys move between firms. If the court sides with Polsinelli, firms could gain greater control over fee distribution, discouraging independent arrangements by departing partners. If Mastriani prevails, it may shift norms toward greater partner autonomy in fee allocation. Either way, the case is likely to ripple across Biglaw practices nationwide.
Key Economic & Social Outcomes
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Protects the perception of ethical responsibility in Biglaw firms.
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Impacts how partners negotiate exits and client retention.
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Reinforces client protection as central to firm stability.
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Signals risks of reputational damage in fee disputes.
Key Legal Outcomes
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Fiduciary Duty Clarification: The court will address whether departing partners owe continuing duties regarding firm profits from client fees.
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Contingency Fee Ownership: Decision could define whether fees belong to the lawyer who worked the case or the firm as a whole.
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Contractual Enforcement: Outcome may set precedent on how partnership agreements govern fee allocation.
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Ethics & Client Consent: Clarifies how client consent impacts fee transfers when lawyers switch firms.
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Future Litigation Risk: Could shape litigation strategies for law firms seeking to prevent fee losses when partners leave.
Why It Matters
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Highlights ethical tensions in fee handling during partner moves.
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Could reshape Biglaw policies on exit agreements and client management.
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Reinforces how courts balance firm interests vs. individual lawyer rights.
Outlet and Publication date:
Above the Law – August 29, 2025
🔗 Read here
