The firm said such goodwill was developed through the efforts of all partners in the firm and that this continued even after Zaid ceased to have any interest from 2008.
It said for 12 years since then the firm had provided professional services and was not in any way associated with the plaintiff, Zaid.
“The interest and goodwill in the name and style of ‘Zaid Ibrahim & Co’ is not owned or in any way connected to the plaintiff,” it said in its defence filed today through law firm Messrs Tommy Thomas.
It said the partnership of the firm was not dissolved whether by sale of Zaid’s remainder equity in the firm pursuant to an agreement in 2008 or when he was terminated as partner on Nov 9 last month.
The firm said it was also not in breach of Section 85 (2) of the Legal Profession Act.
It said the partnership ruling and dissolution were governed, among others, by the partnership agreement which was binding on Zaid.
Last month the former minister, who served briefly under prime minister Abdullah Ahmad Badawi, filed a suit to stop his former legal firm using the name ZICO.
He said he intended to return to private practice but found he could not use his personal name to set up a new firm.
Zaid founded ZICO here in 1987 and was the sole proprietor.
From 1987 to 2008, he said, he built a name for ZICO, “particularly in obtaining empanelment with financial institutions and government-linked corporations”.
“I gradually expanded the practice with salaried partners joining the firm from time to time, including Chew Seng Kok (managing director) and Nik Norzrul Thani Nik Hassan Thani (chairman).
“I retained sole equity until 2008 when I joined the Cabinet,” he said in his statement of claim.
Zaid said that he wrote to Chew and Nik Norzrul in 2018 requesting them to cease using the name of ZICO and to return it to him so he could start his own firm but that they refused.
However, Zaid said that on Oct 5, the partners resolved the name issue with him, by inviting him back to ZICO as an equity partner and chairman.
More than a week after his return, he said, his position in the law firm was terminated on grounds of “unauthorised acts”, but the details were not specified.
“The purported termination as chairman and equity partner was wrongful and I reserve my right to seek appropriate reliefs,” he said.
He is seeking an injunction against his former partners from using the name ZICO pending disposal of the lawsuit.
In 2004, the defendant said Zaid sold 570 of 1,500 units of shares amounting to RM10.1 million to nine lawyers in the firm who became equity partners.
The defendants also said Zaid was compelled to enter into a sale and purchase agreement in 2008 with Chew and Nik Norzrul to dispose of his remaining 930 units at RM25.65 million when he became a minister.
Under the agreement, it was agreed the purchase price would be paid in installments until 2029.
“As such, the plaintiff ceased to have interest in the firm and the name ZICO,” it said.
The defendant said from 2008 until Sept 2020, Zaid also never asserted any interest in “the equity, goodwill, name or any party of the business of the firm”.