Posted Apr 1, 2010 4:28 PM CDT
By Martha Neil

A onetime equity partner of Sonnenschein Nath & Rosenthal who agreed to a "special partner" nonequity employment agreement in 2000 is back in the litigation ballgame.

Donald Horwitz can seek rescission of that contract and a retroactive restoration of his rights—and pay—as an equity partner after an alleged breach by the firm, an Illinois appeals court has ruled.

Horwitz sufficiently alleged both a breach of contract and a workable remedy of recission to proceed with his Cook County Circuit Court lawsuit against the Chicago-based firm over a pay dispute, the Illinois Court of Appeals held in a written opinion (PDF). The opinion, which reversed a trial court dismissal of the case, was filed March 26 and posted on the court's website today.

"We respectfully believe the trial court was right to dismiss the complaint," the firm says in a statement provided to the ABA Journal by a spokeswoman. "Even though the appellate court has ruled that the complaint has satisfied the pleading rules, we are confident that the facts will show the firm fully performed its obligations to Mr. Horwitz."

In his amended complaint, which gives details of Horwitz' income as a special partner and is recapped in the appellate opinion, he contends that the firm breached its special partner contract with him by failing to follow what was at least its then-standard practice of crediting the rainmaking special partner for work he or she brought to Sonnenschein.

"By according equity partners with credit for such billings, the firm its average profits per equity partner, increased the profits realized by the equity partners of the firm and inflated the firm's net income, thereby increasing the apparent value and reputation of the firm," the complaint contends.

The appellate opinion notes that Horwitz was still working as a special partner at the firm at least as of 2007. However, he is not currently listed on Sonnenschein's website.