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Stuart A Rosenthal claims he was wrongfully ousted by the firm in violation of the partnership agreement. Chadbourne & Parke however, claims he resigned voluntarily.
Manhattan Supreme Court Justice Herman Cahn dismissed an action for legal malpractice brought by Rosenthal against the firm, but allowed trial to go ahead over the wrongful dismissal allegations.
Rosenthal claims Chadbourne's management committee terminated his partnership in 1992 in violation of the partnership agreement which requires a severance vote by all partners. He denies resigning, claiming he actually refused to do so.
His partnership ended while he was being investigated by the FBI for possible breach of currency laws in connection with gambling winnings. He was never charged, and indeed helped officials convict an Atlantic City casino executive.
Chadbourne says Rosenthal used his resignation to seek leniency from investigators. The firm also claims that by filing suit, Rosenthal has breached an oral agreement to leave Chadbourne "quietly, and voluntarily" in exchange for free representation in connection with the criminal investigation