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Thursday, October 22, 2009

Legal Malpractice

The New Jersey Supreme Court is about to take another look at the "settle and sue" syndrome: When a client settles a case and then sues his or her lawyer over it. The case is Guido v. Duane Morris.


Ken Isaacson said...

Where do you come out on this particular case?

Bluesburner said...

I don't like the blanket rule that if you settle you can't sue for malpractice. If Guido was not aware of the market implications that the agreed restrictions on his stock, then his consent to settle was not an informed one. My problem is was it Duane Morris' responsiblility ethically or professionally to advise Guido on such matters? I am not sure. I imagine expert testimony will clash on that issue. Guido told the judge he understood the settlement and its terms but claims he was not informed on the effect the stock restrictions would have on its value. I am not sure I buy that, but I agree with giving the plaintiff an opportunity to attempt to prove his case instead of throwing the case out on summary judgment.