The two founders of Tully Rinckey law firm might face a 90-day suspension from practicing law, which alleges to have imposed unfair restrictions on departing lawyers and included anti-competitive provisions in employment agreements, as suggested by a professional conduct board in the District of Columbia on Tuesday.

The disciplinary office's specification of charges stated that Matthew Tully and Gregory Rinckey restricted the rights of lawyers to practice after leaving the firm and that the firm's policies hindered clients from choosing to work with lawyers familiar with their cases.

The 70-lawyer firm stated that the complaint primarily addressed HR practices that the firm has already changed and for which "nobody has ever before been prosecuted" in D.C. The statement clarified that the charges against Tully or Rinckey do not question the quality of work by the firm's lawyers nor allege any dishonesty or criminal acts. The firm anticipates addressing these charges in a fair and public hearing.

District of Columbia Pushing for a Six-Month Suspension

D.C. bar officials wanted a six-month suspension, but the Court of Appeals will decide whether to discipline the lawyers after the board proceedings end.

The D.C. bar's disciplinary counsel office accused Tully and Rinckey in a 2022 ethics complaint of imposing improper restrictions on some departing employees, such as banning them from contacting clients and collaborating with firm alumni.

At certain firm meetings, the report noted threats of suing departing lawyers, with Tully even laughing about the idea of ruining someone's life and bankrupting her.

The conduct was oppressive to employees and affected the interests of clients and potential clients of departing lawyer-employees, stated the report from the three-member committee, now up for review by the entire board.

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Tully's and Rickey's Response

Tully and Rinckey stated the report had "factual and legal errors'' and promised to challenge its conclusions. They denied any wrongdoing and emphasized that none of their clients in New York, its other U.S. offices, or overseas were harmed during their 20 years of operation.

The charges resulted from a rigorous five-year investigation, docketed as 2017-D030, during which Tully and Rinckey fully cooperated. They provided thousands of documents from their law firm, responded to multiple written inquiries from the Disciplinary Counsel, willingly participated in interviews with the Disciplinary Counsel, and encouraged current and former employees and vendors of the firm to cooperate with the investigation.

They called the investigation "unprecedented," citing it involved minor ethical violations related to a less-known rule, which they claimed is applied differently in other states. Both Tully and Rinckey have no prior disciplinary record. Their law firm comprises 70 lawyers and operates in various cities, including Washington, D.C., and Albany, New York.

"Restrictions on Right to Practice"

The committee report noted that this ethics case is the first in D.C. to apply a rule concerning "Restrictions on Right to Practice" for lawyers, which aims to ensure clients have the widest range of options when choosing legal representation.

The case is titled "In the Matter of Matthew B. Tully and Gregory T. Rinckey" and has reference number No. 22-BD-025 with the District of Columbia Board on Professional Responsibility.

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