Law Firms

Andrews Kurth Sued for Malpractice

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A former client this week sued Andrews Kurth for malpractice, alleging that while the law firm was working on a building lease negotiation that ultimately failed, the firm also represented the other party in a separate matter.

Walton Houston Galleria Office, which is part of Chicago-based Walton Street Capital, filed the action April 12 in Harris County District Court, the Houston Business Journal reports. The action seeks damages in excess of $10 million.

The other party involved was Stanford Financial Group. According to the lawsuit, Andrews Kurth defended the company in a Ponzi scheme claim from the U.S. Securities and Exchange Commission.

The deal between Walton and Stanford broke down, according to court documents, and Stanford sued Walton in 2005, which “precluded Walton from selling the Galleria Towers to other willing buyers while prices in Houston’s commercial real estate market were at an all-time high.”

According to the lawsuit, Andrews Kurth never told Walton about their representation of Stanford. Had they, the lawsuit states, “Walton would never have agreed to the letter of intent, the waiver of conflict, or the rounds of purchase negotiations that followed thereafter.”

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