Ex-Client Sues Orrick for $95M, Says Law Firm Didn't Explain Cancellation Provision in Loan Contract
Posted Jan 26, 2012 11:31 pm CST
A Dallas-based former client sued Orrick Herrington & Sutcliffe yesterday in state court in Texas, claiming that it suffered $95 million in damages from a collapsed loan deal because of the law firm’s negligence.
Investment company Highland Financial Partners says in the Dallas County suit that it wouldn’t have paid $65 million to extend a $500 million loan deal if Orrick had explained that amendments to the contract didn’t change a provision that the Royal Bank of Scotland could cancel at will, Reuters reports.
Partner Rod Phelan of Baker Botts is representing Orrick in the matter. He said in an email to the news agency that “Orrick’s lawyers did their jobs, and we will defend this case vigorously.”