Posted Sep 25, 2013 12:56 pm CDT
Duane Morris has settled a malpractice suit filed by former clients who never paid any legal fees.
The law firm had cited a 1993 decision limiting malpractice damages to fees paid to a lawyer, but a Pennsylvania court ruled in November 2012 that the precedent applied only in the criminal context, the Legal Intelligencer (reg. req.) reports. The Pennsylvania Supreme Court had agreed in June to consider the issue.
A Duane Morris spokesperson told the Legal Intelligencer that “the parties have resolved their dispute,” but declined to comment further.
The law firm was accused of providing bad advice regarding the plaintiffs’ tax liabilities after the sale of two businesses, the Intelligencer says. The plaintiffs, the business owners, said they never paid any legal fees because they had understood the buyers of the businesses would pick up the tab.
The law firm had responded that the plaintiffs concealed the nature of the tax liability and had not discussed the matter with a firm lawyer.