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Legal Malpractice Archives

Explaining legal malpractice in California

Legal malpractice is a serious issue that affects clients of attorneys all over the state of California. It is comparable to medical malpractice as it is the failure of the professional to perform for their client as required by their ethical standards and code of conduct. Claims are not warranted simply because a client is unhappy with the outcome of a case. A lot goes into proving legal malpractice.

Warning signs of possible legal malpractice

Working with a lawyer for whatever reason is supposed to be helpful and less stressful than handling legal issues on your own. If you believe your current lawyer is not handling your case properly, you will want to look at possible warning signs of legal malpractice in Pasadena so you can make a switch.

California law firm faces $11 million malpractice lawsuit

A group of franchised coffee shops has filed a legal malpractice suit against the law firm Dady & Gardner. The suit claims that the law firm offered incompetent legal advice, which resulted in irreparable harm to the business of the coffee shops. Allegedly, the law office billed $5 million in legal fees and then abandoned the case three weeks before a crucial hearing.

How do you tell if you've lost a case due to legal malpractice?

When you go to an attorney you have a right to expect that the attorney is going to handle your case with both competence and care. When that isn't what happens, you can end up victimized all over again—losing your case to incompetence or a legal technicality.

Shareholders Can Now Claim Derivative Suits Against Insolvent Companies in Illinois

On June 24, 2016, in a case of first impression in Illinois, the Illinois Appellate Court, First District, in Caulfield v. The Packer Group, Inc. held that shareholders have standing to pursue a shareholder derivative suit against an insolvent corporation. This development offers a means for a corporation to recoup - for the benefit of its shareholders and creditors - assets lost as a result of management's waste and fiduciary breaches. Shareholders can now claim derivative suits against insolvent companies in Illinois. 

The Packer Group (TPG) was a closely held corporation composed of three wholly owned subsidiaries: Packer Engineering Inc. (PEI), Packer Environmental and Facility Consultants Inc., and Packer Technologies International Inc. The two plaintiffs were PEI's president/chief technical officer and its CEO. They filed a shareholder derivative suit on behalf of TPG and PEI against the inside directors of TPG, alleging that the inside directors misappropriated and wasted TPG's assets for their own benefit. The inside directors were TPG's founder and chairman of the board of directors, its executive vice president of finance and secretary of the board and two members of TPG's board. Shareholders can now claim derivative suits against insolvent companies to right previous loopholes.

Lawyer Breaches Operating Agreement in 1.5 Million Dollar Case

Lawyer Breaches Operating Agreement.Studying the language in an arbitration clause, the California state court of appeals recently reversed an order demanding arbitration of a dispute between a lawyer and his client-turned-business-partner. The lawyer must now defend against a $1.5 million claim based on malpractice and breach of the operating agreement that the lawyer had drafted in connection with his real estate venture with the former client. With arbitration provisions becoming a common feature of lawyer-client retainer agreements, this ruling is worth attention.

The client's 2013 malpractice complaint alleged that while serving as counsel to the client and the companies he was affiliated with, the lawyer and the client decided that they would form a company together to develop properties in the affordable housing market. The lawyer prepared the operating agreement for the LLC, which provided that "any controversy between the parties arising out of this Agreement shall be submitted" to arbitration in Los Angeles. Lawyer Breaches Operating Agreement in this 1.5 Million dollar case.

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