Irell & Manella Wants Malpractice Suit Tossed Over Privilege Issue

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Irell & Manella Wants Malpractice Suit Tossed Over Privilege Issue

Posted Aug 26, 2008, 05:59 am CST
By Debra Cassens Weiss

Irell & Manella is seeking dismissal of a $150 million malpractice suit on the ground that a former client’s refusal to waive attorney-client privilege makes it impossible to defend the suit.

At issue is an unnamed associate's deletion of a paragraph in a contract that caused Charter Communications Inc. to lose ownership of a portion of stock, the Daily Journal reports (sub. req.). The disputed stock went instead to Charter owner Paul Allen, who sold 70 percent of it back to the cable TV company for $48 million. Charter's malpractice suit says it is owed that amount along with the value of the lost stock, fees and costs.

Irell & Manella says Allen refuses to waive attorney-client privilege unless he can preview the evidence that the law firm intends to use in the suit, the story says. Irell has already turned over 186 boxes of documents, and the firm contends Allen can find the evidence himself.

U.S. District Judge Andrew Guilford of Santa Ana did not issue an immediate decision. He urged the parties to discuss settlement.

The judge also commented on the dispute, the story says. "There certainly is an admitted error," Guilford said. "Whether it's a scrivener's error or a $150 million malpractice case" remains to be seen.

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