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FEARNOW v. RIDENOUR, SWENSON, CLEERE

No. CV-05-0217-PR.

138 P.3d 723 (2006)

William D. FEARNOW and Elizabeth Fearnow, Plaintiffs-Appellees, v. RIDENOUR, SWENSON, CLEERE & EVANS, P.C., Defendants-Appellants.

Supreme Court of Arizona, En Banc.

July 18, 2006.

Attorney(s) appearing for the Case

Paul G. Ulrich P.C. by Paul G. Ulrich, Pamela B. Petersen, Phoenix, Attorneys for William D. and Elizabeth Fearnow.

Osborn Maledon P.A. by Mark I. Harrison, Thomas L. Hudson, Diane M. Meyers, Phoenix, Attorneys for Ridenour, Swenson, Cleere & Evans, P.C.

OPINION

HURWITZ, Justice.

¶ 1 Ethical Rule ("ER") 5.6(a) of the Arizona Rules of Professional Conduct prohibits an "agreement that restricts the right of a lawyer to practice [law] after termination of [a law firm] relationship." Ariz. R. Sup.Ct. 42 (2006). This case involves the application of ER 5.6(a) to a shareholder agreement requiring a departing lawyer to tender his stock to a professional corporation for no compensation if he thereafter competes...

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