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Legal Malpractice

: New York Attorney Malpractice Blog

Legal Malpractice Case Continues Against Paul Hastings

By (Andrew Lavoott Bluestone)

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From today's NYLJ: "A New York judge has allowed a legal malpractice suit alleging faulty due diligence work by Paul, Hastings, Janofksy & Walker to proceed. Investor Ronald Katz hired the law firm to represent him in connection with a $3 million investment in a company called Humitech. In his suit, Mr. Katz claims the lawyers failed to determine that Humitech was not the beneficial owner of certain mineral rights he expected to obtain, and that other collateral in the form of stocks was encumbered. Paul Hastings had moved to dismiss the suit as time-barred, as the investment closed May 21, 2004, more than three years before Mr. Katz filed his suit. But Manhattan Supreme Court Justice Doris Ling-Cohan (See Profile) denied the firm's motion."

Evidence before Supreme Court consisted of a bill for services after the closing. The court determined that there was an open issue [unresolvable on a CPLR 3211 motion] of whether legal services continued.

Full post as published by New York Attorney Malpractice Blog on April 15, 2008 (boomark / email).