FKB’s  A. Michael Furman and Aaron M. Barham obtained a pre-answer dismissal on behalf of a commercial litigation firm which represented certain shareholders in a lawsuit involving disputes over ownership and proceeds from the sale of manufactured housing properties.  The plaintiffs were different shareholders of the housing property corporation who alleged that FKB’s client committed malpractice and breached its fiduciary duty by asserting derivative claims and negotiating a settlement that did not benefit all shareholders. 

In its successful pre-answer motion to dismiss, FKB submitted documentary evidence establishing that its clients never represented the plaintiffs.  The Court (Justice Carol R. Edmead) also agreed with FKB’s argument that the plaintiffs lacked standing to assert derivative claims belonging to the corporation, and that the plaintiffs’ breach, proximate causation and damage allegations were impermissibly conclusory and speculative. 

If you have any questions about this decision, or the defense of attorneys in general, please contact  A. Michael Furman and Aaron M. Barham.