FKB’s A. Michael Furman and Aaron M. Barham obtained a favorable decision in the U.S. Court of Appeals for the Second Circuit upholding pre-answer dismissal of a fraud lawsuit.  The plaintiff, the spouse of a deceased shipping executive, alleged that FKB’s client, an attorney, conspired with other defendants to “squeeze out” the decedent’s interest in a publicly-held shipping company in connection with the company’s Chapter 11 bankruptcy reorganization. 

In obtaining an affirmance of the district court dismissal with prejudice, FKB successfully argued that that the plaintiff’s fraud and civil conspiracy-based claims were time-barred and otherwise failed to satisfy the heightened pleading standard under Rule 9(b).   The Court (Judges Bianco, Park, and Nardini) also agreed the plaintiff lacked standing to sue in her individual capacity based upon her status as the legal beneficiary of the plaintiff-decedent’s estate.

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