Marshall Dennehey is uniquely positioned to defend lawyers’ professional liability (LPL) claims, and we have been doing so for over three decades. In addition to defending civil matters, we also represent attorneys in disciplinary matters, and we furnish counseling and risk management advice to law firms.
Our familiarity with the bench and bar fosters our ability to manage sensitive issues inherent in many legal malpractice and bar complaint matters. Representing our colleagues at the bar requires tact, finesse, experience and poise, and our attorneys are especially sensitive to reputational issues.
The prototypical legal malpractice case involves two matters: the act or omission of the attorney and the underlying lawsuit or transaction. With approximately 50 distinct practice groups, Marshall Dennehey’s LPL clients benefit from our firmwide civil defense litigation practice. For example, when a legal malpractice claim derives from an underlying medical malpractice matter, members of our Health Care Liability Practice Group bring depth and added knowledge to the defense of the matter.
In addition to the firm’s prowess in defending attorneys and their firms, Marshall Dennehey is proud of its success in providing creative solutions to traditional legal issues. The attorneys within the practice group look for “business solutions” and have structured the resolution of cases by resurrecting the underlying transaction which gave rise to the legal malpractice claim.
The attorneys within this practice are involved in precedent-setting matters. Also, we are thought leaders in the professional liability industry as frequent authors and speakers on risk management and legal malpractice defense.
In addition to defending these claims in the seven states where our offices are located, we try cases as lead counsel on a national basis and associate with local counsel when necessary. The firm has provided counsel to respected lawyers from essentially every domestic insurance carrier and has represented lawyers through the London market.
Results
Summary Judgment Secured for Law Firm
We secured summary judgment for a law firm by successfully arguing that its role in implementing and overseeing a client’s anti-money laundering policies did not encompass the accounting functions the accounting firm had agreed to perform, and that there was no evidence the law firm acted negligently. The underlying malpractice claim was brought by a check cashing company against its accountants, alleging that the accounting firm failed to detect thefts committed by one of the company’s employees. The accounting firm, in turn, filed a third-party contribution claim against the law firm, contending that the firm should have detected the employee’s thefts through its work overseeing the company’s anti-money laundering policies. The Court rejected the accounting firm’s arguments, granted our motion for summary judgment, and dismissed the contribution claim.
Voluntary Dismissal Obtained in New York Legal Malpractice Matter
Thought Leadership
Legal Updates for Lawyers' Professional Liability
Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm
July 29, 2026
In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.
Legal Updates for Lawyers' Professional Liability
Delaware Superior Court Clarifies Pleading Standard for Legal Malpractice Claims
July 29, 2026
In the matter of Edelstein v. Kirschner, No. N25C-09-018 FJJ, 2026 Del. Super. LEXIS 45, at *1 (Super. Ct. Jan. 29, 2026), the plaintiff law firm sued its former client for unpaid legal fees in the amount of $4,399.35. The former client asserted a counterclaim alleging legal malpractice. More, specifically, the former client claimed that his lawyer committed malpractice be recommending that he settle an underlying lawsuit by entering into a stipulated judgment for an excessive amount with interest that was accruing at “an outlandish” interest rate. The law firm moved to dismiss the counterclaim on the basis that its former client had not alleged facts reflecting that he could prove the case within the case. That is, facts reflecting that his attorneys caused him to lose the underlying case. The Superior Court held that while a legal malpractice plaintiff in cases arising from underlying litigation must prove the case within the case to survive a summary judgment motion, he does not need to plead facts reflecting as much in order to survive a motion to dismiss. While this case addresses the pleading requirements of a legal malpractice case in Delaware, it also serves as reminder that chasing unpaid legal fees from a former client can often give rise to a legal malpractice counterclaim. Attorneys seeking to collect unpaid legal fees should ensure that the fees they seek are for a significant amount, which would be recoverable if a judgment is obtained. Otherwise, the effort could backfire.
