Updated · Original Jurisdiction | David Lat · Jul 6
Former Clifford Chance Partners Sue Over $5.8 Million Clawbacks After Sidley Move
Updated
Updated · Original Jurisdiction | David Lat · Jul 6
Former Clifford Chance Partners Sue Over $5.8 Million Clawbacks After Sidley Move
1 articles · Updated · Original Jurisdiction | David Lat · Jul 6
Summary
$5.8 million in disputed pay is at the center of a New York lawsuit by former Clifford Chance partners Cliff Cone and Michael Sabin, who left in January to join Sidley Austin.
Clifford Chance told them in March it would claw back nearly $4.4 million from Cone and $1.4 million from Sabin under partnership terms that recalculate compensation for partners who join competitors.
The pair are not trying to bypass mediation or arbitration; they want a declaratory judgment that New York law, not English law, governs the dispute and could void the clawback provisions.
A New York City Bar ethics opinion attached to the complaint says firms cannot impose financial penalties on lawyers who leave for rivals because that restricts lawyer mobility and client choice.
The case highlights a broader Big Law fight as lateral partner moves stay brisk and firms increasingly press compensation claims against high-paid defectors.