Law Firms

Client Sues Faegre & Benson, Says Standard Clause Omitted from Business Sale Contract Cost Millions


A former client has sued a Minnesota law firm for malpractice, alleging that a standard clause was left out of a $6.8 million sales contract for the Vinny T’s restaurant chain, exposing Buca Inc. to liability concerning transferred leases after the sale.

The Hennepin County District Court suit says Buca was forced to ante up after the purchaser, C&T Restaurant Management, failed to pay rent. To address the $37 million or so in contingent liabilities with which it “unwittingly remained saddled” after the transaction, Buca contends had to pay more than $3 million in expenses related to reacquiring a number of Vinny T locations, the Pioneer Press reports.

The suit says Buca expressly instructed Faegre & Benson in an email to include indemnification language in the agreement. It seeks compensatory damages and attorney fees.

Bill Busch, the general counsel for the 450-attorney firm, declined to comment, the newspaper reports. However, in an answer to the suit, Faegre & Benson denies wrongdoing, denies that the email was a final instruction concerning the matter and says that Buca didn’t sustain any damages from the firm’s alleged negligence.

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