FKB’s Aaron M. Barham obtained Rule 12(b)(2) dismissal of a high-exposure LPL complaint brought in the U.S. Southern District of New York against an out-of-state law firm.   

FKB’s client served as escrow agent regarding five financing transactions which allegedly resulted in the co-defendants’ alleged misappropriation of funds from the plaintiff financing company.  FKB successfully argued that the plaintiff could not establish general or specific jurisdiction pursuant to CPLR, and that the plaintiff could not rely on the 18 USC 1965 (a sub-section of the RICO statute) to obtain jurisdiction because no RICO claim was being asserted against FKB’s clients.  FKB also argued that the plaintiff’s complaint was subject to dismissal due to the parties’ lack of privity and because FKB’s client disbursed the funds in accordance with the escrow parties’ instructions. 

If you have any questions about this decision, or the defense of attorneys, accountants, or other professionals, please contact Aaron M. Barham.