By Mike Scarcella

Feb 23 (Reuters) - Law firm Gibson, Dunn & Crutcher cannot evade an arbitrator's ruling in favor of its prominent former partner Mark Perry, a California appeals court has ruled, ending a legal battle over Perry's compensation and benefits nearly four years after he left for a rival firm.

The 2nd District California Court of Appeal said last week that it was inclined to uphold an order granting Perry $557,000 and future payments as a retired Gibson Dunn partner. Gibson Dunn and Perry told the court on Monday that they agreed to the tentative ruling.

Perry's lawyer Michael von Loewenfeldt declined to comment. Gibson Dunn did not immediately respond to a request for comment.

Perry joined rival law firm Weil Gotshal & Manges in 2022 after nearly 28 years at Gibson Dunn. Court records show Perry was paid $60 million during his time at Gibson Dunn, which employs more than 2,200 attorneys.

Perry sued Gibson Dunn in 2024 to enforce an arbitrator's holding that he should be considered retired, not resigned, and is entitled to retirement payments once he stops competing with the firm. Los Angeles Superior Court Judge Kevin Brazile sided with Perry that year.

Gibson Dunn in its appeal said the firm’s partnership agreement creates a “significant financial incentive” for lawyers to spend their entire careers at the firm.

“Every Gibson Dunn partner also knows that leaving Gibson Dunn to work for a competitor means forfeiting those payments,” the firm told the court.

Perry countered that he met all the agreement’s requirements to be a retired partner. Perry told the court that the lower judge "properly rejected Gibson Dunn’s attempt to relitigate the issues resolved by the arbitrator."

Perry is now based in Weil's Washington office and co-leads the firm's appellate practice. His clients have included companies such as Apple, Comcast and Pfizer.

The case is Gibson, Dunn & Crutcher v. Perry, California 2nd Appellate District Court of Appeal, No. B339903.

For Gibson Dunn: James Fogelman of Gibson Dunn

For Perry: Michael von Loewenfeldt of Complex Appellate Litigation Group

Read more:

Gibson Dunn loses ruling in pay fight with $60 million ex-partner

(Reporting by Mike Scarcella in Washington)