Clayton Utz is preparing to launch a legal case against former partner and Allen & Overy defector Grant Fuzi, reports the Australian Financial Review.
It is alleged that Fuzi lied to Clayton Utz prior to his resignation in respect of his post-resignation plans, even telling some colleagues that he intended to leave the law altogether.
Instead, AFR reports that Fuzi received a payout of $700,000 from Clayton Utz in order to waive his period of notice, but only under the condition that he would not join a competing firm.
Fuzi is believed to be the ringleader in a 14 partner exodus from Clayton Utz to English newcomers Allen & Overy.
Clayton Utz has also alleged that by joining Allen & Overy, Fuzi breached his fiduciary duty to the firm - a duty which arises as a result of his position of partner.
It is believed that Tom Bathurst QC has been retained to advise the firm on the imminent showdown.
Clayton Utz declined to comment to Lawyers Weekly on the matter.