Thursday, June 3, 2010

Settlement Undisturbed, Attorneys Can Be Sued

The New Jersey Supreme Court has affirmed an Appellate Division decision that overturned the trial court's grant of summary judgment to Duane Morris as defendant in a legal malpractice action. The underlying matter involved corporate governance concerns and had been resolved by a settlement. The client later sued the law firm for malpractice but had not sought to vacate the settlement.

Here, the court agreed with the Appellate Division that the lawyer defendants may properly be sued for giving negligent advice without the plaintiff first seeking to vacate the settlement agreement, so long as it is contended that the negligent advice culminated in the settlement. (Mike Frisch)

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