FKB’s client, a litigation attorney based in Pennsylvania, facilitated communications between the Plaintiff law firm and the codefendants, regarding the Plaintiff law firm’s representation of the co-defendants in a shareholder litigation in New York Supreme Court. After the co-defendants ceased paying legal fees, the Plaintiff law firm brought a breach of contract claim against FKB’s client on the basis that the attorney rendered himself a party to the underlying retainer agreement by allegedly exceeding the scope of his authority as agent. Applying agency and contract law principles, FKB argued in its Rule 12(b) motion to dismiss that its client could not be held liable for breach of contract absent evidence of intent to superadd the client’s own personal liability onto the retainer agreement. The Plaintiff law firm agreed to voluntarily discontinue the claims against FKB’s client the day before its opposition was due.
If you have any questions about this decision, or the defense of attorneys, accountants, or other professionals, please contact Aaron M. Barham.