Trials & Litigation
Ex-client sues law firm, says it withheld key info in real estate development project
Posted Aug 5, 2013 4:10 PM CST
By Martha Neil
An Ohio law firm has been sued by a former client, who blames alleged bad advice by Keating Muething & Klekamp for a decision of him and other investors guarantee more than $90 million in financing for a failed retail and office complex known as Kenwood Towne Place.
The uncompleted project is in bankruptcy, and two individuals with the project developer, Bear Creek Capital, including former managing director Matt Daniels, now face fraud charges, the Cincinnati Enquirer reports.
Plaintiff Hank Schneider, president of DOV Ltd. contends in the Hamilton County Common Pleas Court malpractice suit that partner Herbert Weiss and the Cincinnati law firm withheld key information, failed to disclose a prior business relationship with Daniels and had conflicts of interest.
However, attorney Charlie Faruki, who represents Weiss and the firm, said they did nothing wrong and disclosed in writing at the outset of the representation that they had had previous dealings with Daniels. Neither Weiss nor the firm was an investor in the project, Faruki noted.
“The notion that the Keating firm could have somehow prevented the financial exposure of Mr. Schneider ... does not have any basis in fact,” he told the newspaper. “This situation is simply an attempt by one of the developers to shift his business losses onto his former counsel.”