Legal Malpractice

Patents, Sanctions and Legal Malpractice

By (Andrew Lavoott Bluestone)

We end this week with a look at a huge legal malpractice action just brought against Greenberg Traurig LLP, based upon patent work, and a more than $1 million judgment entered against their client.  Widely reported yesterday, the complaint was set forth in the NYLJ.  What is it about?

The complaint alleges that defendants Sutton and predecessors had handled the IP and patent work for Leviton Manufacturing Co. and with a former partner, had handled the Leviton work for 35+ years.  Leviton holds more than 800 patents in the electrical and electronic wiring field.

It is alleged that problems arose in the patent applications for a Ground Fault Circuit interruption device which was the mainstay of the Leviton company.  More problems followed, and it is alleged that Greenberg Traurig failed to make proper disclosures to the US Patent office.

Litigation with Shanghai Meihao Electric Inc then started and went badly.  It was argued that "inequitable conduct" by Greenberg Traurig might invalidate and make unenforceable the patent.  US District court agreed and found that GT had intended to deceive the PTO.

This led to sanctions in excess of $ 1 Million, along with attorney fees. This litigation ensues.  Of interest will be the Breach of Fiduciary Duty cause of action.  Breach of Fiduciary Duty, best illustrated by the Ulico v. Wilson Elser case, stands for a claim of damages, not for malpractice, but for billing, and quasi-fraudulent activity.  Damages generally are the return of fees, and re-imbursement of sanctions and attorney fees to others.  Beyond the Breadh of Fiduciary Duty is a legal malpractice for a wide variety of patent application mistakes.

Full post as published by New York Attorney Malpractice Blog on September 25, 2009 (boomark / email).