Ken Reynolds says he started his own firm because of a desire to be his own boss.
Attorney Ken Reynolds has backed out of the law firm recently formed through an acquisition of RGG Law PC by Parmele Law Firm PC.
Reynolds yesterday started Ken Reynolds Attorney at Law PC, citing a desire to be his own boss. He’s the sole attorney and employs two office workers.
“When Dan Parmele made the offer to purchase the law firm, it was very generous and it was an offer that I couldn’t personally refuse. I had all intentions of working with Dan,” Reynolds said. “After being my own boss for 27 years, it’s just hard for me to work for someone else.”
Parmele said Reynolds’ decision came as a shock. In the deal, Parmele purchased RGG Law PC - and Reynolds’ ownership stake -
in March for undisclosed terms. RGG Law PC became a subsidiary of Parmele Law in the transaction, and RGG’s bankruptcy practice remained at 1240 E. Independence St., Ste. 200, just east of Cox South.
Parmele said RGG Law partners Reynolds and Jon Gold gave him a verbal three-year commitment to stay on with the firm, but those terms were not in the written contract. The contract did not require Reynolds to pay back Parmele if he left the business.
“The way I structured the deal, it has a negative effect on me,” Parmele said. “I would not have structured the deal this way if I had known he was going to quit after six weeks.”
Reynolds, who said he exited Parmele Law on friendly terms with Dan Parmele, operates his new firm at the Independence Street office. Reynolds said all but one of his several hundred clients - who he declined to name - transitioned with him.
But Parmele said the purchase of RGG Law included Reynolds’ book of business. However, he said Missouri law dictates clients can pick whichever firm they prefer.
“We’re all in the process of waiting to see who they choose,” he said.
Parmele said Reynolds left his firm May 17 after giving notice 30 days earlier. The two have a history that stretches back to at least 1996. Parmele and Reynolds were partners in Reynolds, Parmele & Gold PC for five years before Parmele split off to form Parmele Law Firm in 2001. That history, according to Parmele, led him to design the purchase deal with verbal commitments rather than a written contract.
“I could have probably structured it more stringently to where it makes it harder for them to walk away. I didn’t want to do this,” Parmele said. “I believed them in that they wanted to stay for three years.”
Ken Reynolds Attorney at Law focuses on civil work, including for four cities the attorney represents, with bankruptcy cases as needed.
“I signed an agreement not to advertise bankruptcy for a two-year period of the date of sale. I will certainly honor that,” he said. “I can file bankruptcies and do bankruptcies, but I can’t advertise it. If I do bankruptcy work, it’s only through referral and word of mouth and past clients.”
