Legal News

Lawyers Beware, Malpractice-Allegation Week is Here!

By Ashby Jones

We know BigLaw-malpractice allegations get thrown around all the time. But we’re only at Wednesday, and already this week seems to have brought forward more than its fair share of malpractice stories.

Let’s get you up to speed on three, all of which involve allegations that a law firm was largely asleep at the wheel.

Greenberg Traurig: The Recorder reports today on a malpractice investigation into Greenberg Traurig over work the firm did in connection with the Heller Ehrman dissolution. Click here for the story; here for the filing that just hints at the allegations (see paragraph #20), made by lawyers at Pachulski Stang, Heller’s debtor counsel.

According to the Recorder, at issue is Greenberg’s apparent failure to discover that Heller’s biggest creditor, Bank of America, had given up its security interest in the firm. Lawyers familiar with the matter told the Recorder that Heller would have fared better with its other banks and creditors had it known BofA wasn’t a secured creditor. Heller may have even been able to avoid bankruptcy, sources told Recorder.

Greenberg’s Les Corwin told the Recorder: “We have not yet . . . been contacted . . . with respect to any investigation concerning the pre-bankruptcy services our firm provided. We are proud of the results we have achieved and the work we have done, and continue to do, for Heller Ehrman.”

Dewey & Leboeuf: Liquidators for a big midwestern insurance company called General American Life Insurance have lodged a $3 billion lawsuit against Dewey & Leboeuf, claiming largely that undisclosed conflicts-of-interest led to General American’s failure and ultimate sale to MetLife. In a statement to AmLaw Daily, Dewey said: “The complaint makes profoundly erroneous misstatements of fact and is little more than a misguided attempt by a liquidator to attract media attention. Dewey & LeBoeuf acted at all times in accordance with the highest professional standards and intends vigorously to defend these baseless and irresponsible claims.” Click here for the complaint.

Dickinson Wright: A company called Warrior Sports has launched a $33 million legal malpractice suit against its Dickinson Wright, alleging that lawyers at a firm subsequently merged with Dickinson, Artz & Artz, failed to pay a maintenance fee on a lacrosse-stick patent in 2004. As a result, the patent lapsed. Click here for the complaint, filed in federal court in Detroit. We reached out for a response from the firm, but have not yet heard back. We’ll let you know if we do. Hat Tip: IP Law 360.

Full post as published by Law Blog - WSJ.com on June 03, 2009 (boomark / email).