N.M. R. Prof'l. Cond. 16-506

As amended through May 8, 2024

Rule 16-506 - Restrictions on right to practice

A lawyer shall not participate in offering or making:

A. a partnership, shareholders, operating, employment or other similar type of agreement that restricts the right of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement; or

B. an agreement in which a restriction on the lawyer's right to practice is part of the settlement of a client controversy.

N.M. R. Prof'l. Cond. 16-506

As amended by Supreme Court Order No. 08-8300-29, effective 11/3/2008.

Committee commentary. -

[1] An agreement restricting the right of lawyers to practice after leaving a firm not only limits their professional autonomy but also limits the freedom of clients to choose a lawyer. Paragraph A prohibits such agreements except for restrictions incident to provisions concerning retirement benefits for service with the firm.

[2] Paragraph B prohibits a lawyer from agreeing not to represent other persons in connection with settling a claim on behalf of a client.

[3] This rule does not apply to prohibit restrictions that may be included in the terms of the sale of a law practice pursuant to Rule 16-117 NMRA of the Rules of Professional Conduct.

[Adopted by Supreme Court Order No. 08-8300-29, effective November 3, 2008.]

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ANNOTATIONS The 2008 amendment, approved by Supreme Court Order No. 08-8300-29, effective November 3, 2008, in Paragraph A, changed "or employment" to "shareholders, operating, employment or other similar type of" and in Paragraph B, changed "controversy between private parties" to "client controversy". Compiler's notes. - The old ABA Comment was replaced by the 2008 committee commentary. Am. Jur. 2d, A.L.R. and C.J.S. references. - Enforceability of agreement restricting right of attorney to compete with former law firm, 28 A.L.R.5th 420.