Advisory Opinion: 927

Year Issued: 1985

RPC(s): RPC 5.6(a)

Subject: Restriction on right to practice; departing shareholder's compensation tied to voluntary non-compete agreement

[The question concerned a proposed shareholder agreement for a law firm in which the purchase price of a departing shareholder's stock would depend on whether the departing stockholder signed a covenant not to compete.] The Committee was of the opinion that your proposed termination agreement in an employment contract does constitute a restriction on the right of a lawyer to practice after terminating his relationship with the corporation, which violates RPC 5.6(a).

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.