Moncharsh v. Heily & Blase

Philip Moncharsh (plaintiff) worked as an attorney for Heily & Blase (defendant) under a contract requiring him to pay the firm 80 percent of fees earned from any client he continued to represent after leaving, with disputes subject to binding arbitration. When Moncharsh left and took six clients with him, an arbitrator ruled Heily & Blase was entitled to 80 percent of fees from five long-standing clients but not from a sixth client, Ringhof, who had retained Moncharsh less than two weeks before he left, finding fee-splitting on that client would be unconscionable. Moncharsh sought to vacate or modify the award in the parts unfavorable to him, arguing the fee-splitting arrangement violated law, public policy, and professional-conduct rules; the trial court and Court of Appeal both affirmed the arbitrator's award, and the California Supreme Court granted review.