(L to R) Michael Farber and Daniel Schneider. Courtesy photosConstruction, Real Estate Boutique Sues 2 Former Lawyers Who Started Competing Firm
Klein Slowik alleges that Michael Farber and Daniel Schneider were "faithless servants" who used its resources to lay the groundwork for their competing firm.
June 21, 2019 at 05:35 PM
3 minute read
Klein Slowik, a seven-person law firm focused on real estate, construction and related areas of the law, has sued two of its former lawyers and their new firm for allegedly using its resources to set up their own, competing business.
The law firm sued its former lawyers, Michael Farber and Daniel Schneider, and their new firm, Farber Schneider Ferrari, earlier this week in Manhattan Supreme Court, saying the duo used Klein Slowik's resources to lay the groundwork for their competing firm. The suit said their actions were those of “faithless servants.”
The suit alleges that Farber and Schneider “attempted to use the notification to Klein Slowik PLLC clients of their impending departure as a vehicle for soliciting business for their new firm” and “deleted a mass number of Klein Slowik PLLC electronic files and documents.”
Farber was a senior associate and Schneider was counsel at Klein Slowik, according to their respective LinkedIn pages.
The complaint also accuses the two lawyers of filing a motion in a case under their new firm name without Klein Slowik's approval, of removing unspecified property from the firm's offices without permission, and of using company calendars and phone lines for improper purposes.
“This frivolous action has no merit and we deny the allegations,” Farber, commenting for himself and his colleagues, said in an email. “Various clients left Klein Slowik for the same reasons we did. It should be obvious that clients have an absolute right to choose their counsel. Thus, we intend to vigorously defend this action in the same way we fight for our clients.”
Klein Slowik lists seven lawyers on its website. The firm says it helps developers, property owners, designers and builders in administrative law matters, licensing and litigation. Farber Schneider Ferrari, whose third lawyer is Michael Ferrari, was founded last year and lists on its website some of the same practice areas, along with legal issues relating to restaurants and service establishments.
Klein Slowik alleges in its complaint that Farber and Schneider were faithless servants and their new firm “performed and/or assisted in and/or benefited” from their alleged wrongdoing. It is seeking damages of more than $500,000, which include salaries it seeks to claw back, business “stolen,” the value of certain files and the use of firm resources, according to the complaint.
A partner at Klein Slowik declined to elaborate on the allegations.
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