Kentucky Supreme Court Upholds 75% Breakup Fee in $Emery Law v. Franklin$
The Kentucky Supreme Court reversed a trial court decision and upheld a 75% fee-allocation clause in a law firm separation agreement, ruling that the provision does not violate ethics rules restricting lawyers' practice rights. In Emery Law Office, Inc. v. Joel Franklin, the court held 4-3 that the clause imposed no direct restriction on Franklin's ability to practice or accept clients. Justice Kelly Thompson's majority opinion distinguished the case from prior precedent requiring quantum meruit fee splits, finding that a negotiated separation agreement should be enforced under contract principles rather than automatic fee-division rules.