Gorman v. Grodensky

498 N.Y.S.2d 249 (1985)

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Nature of the Case

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Facts

P alleges that since 1967 D and LeSchack (LeSchack) were the sole partners in the partnership of LeSchack & Grodensky (L&G). Both D and LeSchack were attorneys practicing law and the partnership was a law firm. This partnership is also a named defendant. L&G 'maintained and operated a business, known as the 'Collection Division', engaged in the collection of debts'. It is claimed that in 1967 Ds entered into an agreement which provided that P would be employed as office manager of the Collection Division for as long as the firm existed, in return for which he would receive a salary of $350 per week plus one-third of the net profits of the Collection Division. In 1970 LeSchack died. The parties 'amended their agreement to provide for a division of the net profit of the Collection Division with 50% to be paid to P and 50% to be paid to D.' P alleges that Ds breached the agreement by wrongfully terminating his employment and failing to pay the money due him. D contends that it is entitled to dismissal of the complaint because, even if the purported contract is genuine, it is essentially an agreement to split attorney's fees and is therefore against public policy and unenforceable.