Ex-Client Asks for Liability Judgment Against Morgan Lewis in Conflict Case
Former Morgan Lewis client Towers Watson Delaware argues that the firm cannot deny its allegations in a $30 million lawsuit.
March 15, 2018 at 05:54 PM
3 minute read
Photo: Aixa Montero Holt/ALM
A former client of Morgan, Lewis & Bockius is asking a Philadelphia judge to find that the law firm is liable as a matter of law in a $30 million lawsuit over an alleged conflict of interest.
In a motion for judgment on the pleadings filed late Tuesday, Towers Watson & Co. argued that Morgan Lewis' own documents support Towers' allegations, asserting Morgan Lewis has not provided any specifics to back up its denials.
“Pennsylvania law is well settled that a party may not simply avoid judgment on the pleadings with denials that do not directly respond to the well-pleaded factual averments of a complaint,” Towers said in its motion, filed in the Philadelphia Court of Common Pleas.
According to Towers' complaint, Morgan Lewis represented Towers from 2009 to 2016. In 2010, the suit says, Morgan Lewis began defending another client, Meriter Health Services, in a class action over a retirement plan. After the class action settled in 2014, Meriter then sued a Towers entity that designed the retirement plan at issue, alleging that Towers was responsible for Meriter's liability in the class action.
Towers has alleged that Morgan Lewis used its representation of Towers to assist another law firm, referred to in the complaint as “Law Firm 2,” in developing Meriter's lawsuit. Morgan Lewis' filings identify Law Firm 2 as Nixon Peabody.
In its latest motion, Towers said Morgan Lewis has admitted or “must be deemed to admit” that it knew there would be a conflict between Meriter's and Towers' interests, and that the firm never informed Towers of the conflict.
“Simply, defendants do not—because they cannot—specifically deny that they made the statements or took the actions factually alleged in the complaint as demonstrated through defendants' own documents,” Towers' filing said.
In an answer to the suit filed in December, Morgan Lewis said it never represented a client in a matter directly adverse to Towers. But even if the firm had done so, Morgan Lewis said, Towers expressly waived any conflict of interest in a 2010 engagement letter, and again in 2012 when it reaffirmed the engagement.
But in its motion for judgment on the pleadings, Towers contends that Morgan Lewis said in a 2016 letter to the Dane County Circuit Court in Wisconsin that its attorney, Jeremy Blumenfeld, had a nonwaivable conflict of interest with regard to the suit Meriter ultimately filed against Towers. Additionally, Towers said, in preliminary objections, Morgan Lewis already presented the court with its argument that Towers waived the conflict, and that argument was rejected.
“A conflict waiver is effective only upon obtaining informed consent,” Towers' motion said. “Nowhere in their amended answer and new matter do defendants allege that they communicated anything to Towers regarding a conflict of interest arising from Morgan's representation of Meriter, let alone allege that defendants consulted with and communicated the requisite adequate information and explanation of the risks and alternatives to Towers and thereafter obtained Towers' consent.”
A spokeswoman for Morgan Lewis said the firm declined to comment on the motion for judgment on the pleadings.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllPhila. Med Mal Lawyers In for Busy Year as Court Adjusts for Filing Boom
3 minute read'Recover, Reflect, Retool and Retry': Lessons From Women Atop Pa. Legal Community
3 minute readEDPA's New Chief Judge Plans to Advance Efforts to Combat Threats to Judiciary
3 minute readTrending Stories
- 1Will Trump Be a Boost to Quinn Emanuel's Fortunes in China?
- 2Mayer Brown’s Hong Kong Split to Take Effect
- 3Simpson Thacher Launches in Luxembourg With Hires From A&O Shearman, Clifford Chance
- 4How Cybercriminals Exploit Law Firms’ Holiday Vulnerabilities
- 5Big Firms May See 'Uncomfortable Flashbacks' as Cost Pressure Grows
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250