Nature of the Case
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Facts
Bohatch (P) who had been deputy assistant general counsel for FERC, left to join Butler & Binion (D) to represent Pennzoil before the FERC. Eventually, P was made a partner in the firm and began to receive internal reports showing the number of hours each attorney worked, billed, and collected for. P questioned how McDonald could bill as many hours as he reported given P's personal observations of his work habits. P discussed this with the other attorney in the office, even sneaked, and copied McDonald's daily time dairies. P never saw the bills to Pennzoil nor did she know the fees that Pennzoil was being charged, and she concluded that McDonald was overbilling Pennzoil. Feeling obligated to report the matter under the code of professional responsibility; she discussed the issue with Louis Paine, the managing partner. McDonald found out, eventually attacked P for her work, and immediately gave her no more Pennzoil work and McDonald told the other partners that Pennzoil was dissatisfied with her work. The review of the hours billed was merely internal only and because the internal printouts reflected the time reported by attorneys, all was well. Paine decided to tell Pennzoil so it could make its own determination. Pennzoil counsel was offered the opportunity to review the bills and while doing so told D of the complaints over P's work. The conclusion of the review was that the bills were reasonable. P made additional allegations of overbilling that in fact would have shown that D should not have billed Pennzoil at all for any work done for three months. Paine informed P that there was no overbilling. It was suggested that P look for work elsewhere. For nine months, D allowed P to keep her partners draw and her office while she sought other employment but did not pay her any partnership distribution. P left to join another firm and D expelled her as a partner a month later. P sued D for breach of the partnership agreement. The jury gave her the verdict. D appealed, and the court of appeals affirmed in part and reversed in part.
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