Case Citation
Legal Case Name

Day v. Sidley & Austin Case Brief

District Court, District of Columbia1975Docket #1608462
394 F. Supp. 986 1975 U.S. Dist. LEXIS 12145 Business Associations Contracts Torts

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: A senior law partner resigned after a firm merger resulted in the loss of his sole chairmanship of an office. He sued the firm’s executive committee, but the court found the partnership agreement authorized the committee’s actions and dismissed all claims.

Legal Significance: A comprehensive partnership agreement can override default partnership law rules, granting a management committee broad authority over firm policy and structural changes, and limiting the scope of partners’ fiduciary duties regarding internal governance matters that do not involve self-dealing.

Day v. Sidley & Austin Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiff J. Edward Day, a senior partner who founded the Washington D.C. office for the law firm Sidley & Austin (S&A), sued the firm’s executive committee after resigning. The committee had negotiated a merger with another firm, which Day and all other partners ultimately approved by signing the final agreements. Following the merger, the new management committee appointed Day as a co-chairman of the Washington office, a role he previously held alone, and decided to relocate the office over his objections. Day resigned, claiming these actions amounted to a constructive ouster. He alleged breach of fiduciary duty, breach of contract, and fraud, arguing the committee concealed its plan to diminish his role and misrepresented that no partner would be ‘worse off’ from the merger. The S&A partnership agreement, which Day had signed, granted the executive committee broad authority over ‘all questions of Firm policy’ and stipulated that amendments and the admission of new partners required only a majority vote. The agreement contained no provision guaranteeing Day’s status as sole chairman.

Court Holding & Legal Precedent

Issue: Does a law firm’s executive committee breach its fiduciary or contractual duties to a partner by orchestrating a merger and altering that partner’s management role when the partnership agreement grants the committee broad authority over firm policy and allows for such changes by a majority vote?

No. The court granted summary judgment for the defendants, holding that the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident,

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IRAC Legal Analysis

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Legal Issue

Does a law firm’s executive committee breach its fiduciary or contractual duties to a partner by orchestrating a merger and altering that partner’s management role when the partnership agreement grants the committee broad authority over firm policy and allows for such changes by a majority vote?

Conclusion

The case is a leading authority on the power of a partnership Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo conseq

Legal Rule

The rights and duties of partners, as defined by default common law Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariat

Legal Analysis

The court's analysis centered on the supremacy of the partnership agreement in Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing

Flash-to-Full Case Opinions

Flash Summary

  • A comprehensive partnership agreement can override default UPA rules, permitting major
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt

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