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Misconduct Archives

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.

Parents Sue Hired Attorney for Small Settlement

At Tinley Park in 2011, a young Alsip woman died in a traffic acident caused by a car driven by an intoxicated acquaintance. He crashed the vehicle after leaving a concert at the Venue. On June 7, the parents Debra and William Elam brought their complaint in Cook County Circuit Court against attorney Daniel O'Connor and the firm of O'Connor & Nakos, of Chicago, alleging professional negligence against the attorney and his firm. The parents were seeking to sue their hired attorney.

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