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Wilson Elser Must Forfeit Millions in Fees

Posted Apr 5, 2007 8:27 AM CDT
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Manhattan Supreme Court Justice Marcy S. Friedman has ruled that New York's 845-lawyer Wilson, Elser, Moskowitz, Edelman & Dicker must turn over millions of dollars in legal fees to former client Ulico Casualty Co. because the law firm participated in a scheme to transfer Ulico policyholders to another insurer.

"While Wilson Elser had the right to represent competitors . . . it did not have the right to represent competitors in setting up a competing business to which it was contemplated that Ulico's accounts would be transferred," the judge ruled, the New York Law Journal reports.

Ulico claims it is owed $3.4 million in fees. Friedman also allowed Ulico to proceed with other claims for legal malpractice and tortious interference with contract; it is seeking total damages of more than $100 million from the law firm.

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