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Legal Malpractice Defense Verdict on Behalf of National Law Firm

Representing one of the largest law firms in the country, Marshall Dennehey's professional liability attorneys obtained a defense verdict in a three-week legal malpractice trial in Pennsylvania, where the plaintiffs claimed in excess of $18 Million. The plaintiff automobile dealerships, related entities and their owners discovered in the summer of 2005 that they were $7 million out of trust with their bank as a result of an alleged fraud perpetrated by their Chief Financial Officer. The plaintiffs claimed that the CFO tricked the bank's third-party car counter into verifying inventory that the plaintiffs believed did not actually exist. The plaintiffs claimed that the law firm had breached its contract with them by failing to preserve their claims against that third party during the negotiation of loan workout documents with the plaintiffs' bank. The plaintiffs alleged that, had the law firm properly preserved those claims, they would have prevailed against the third party in the underlying lawsuit and would have recovered nearly $20 million in damages. We proved that the lawyers did an excellent job and that the underlying claim against the car counter was fatally flawed. The jury credited the testimony of the defense's clients that the effect of the documents signed by the plaintiffs was fully explained and understood.  After two hours of deliberation, the jury found that the law firm had not breached its contract with the plaintiffs and did not need to reach the merits of the underlying lawsuit.

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