Heller’s Unfinished Business Belongs to Living, Not Dead Law Firm

The Heller Ehrman LLP estate has no claim on profits from unfinished hourly business remaining after the firm failed, the California Supreme Court unanimously ruled March 5.

The closely watched decision is another strike for the 34-year-old Jewel doctrine that absent an agreement, partners must share in profits from active business at the time the firm ceases operating.

The court held “a mere possibility of unearned, prospective fees” can’t constitute a property interest for a firm incapable of handling unfinished hourly client matters and would impinge on clients’ right to fire an attorney at will.

“The firm never owned such ...