Schnader Harrison Segal & Lewis is fighting conflict allegations arising from its representation of multiple members of a wealthy family with Philadelphia ties, arguing that the family member now suing the firm should have brought her claims years ago.

The Philadelphia-based law firm filed a motion to dismiss a second amended complaint in a lawsuit filed last year by Anna Nupson alleging legal malpractice, breach of contract and breach of fiduciary duty.

“No amount of creative draftsmanship can alter the fundamental fact that this lawsuit is based on events and legal advice that occurred in 2003 and earlier, and is therefore time-barred,” Schnader's latest motion said.

In her suit, Nupson alleged that lawyers at Schnader caused her over $315 million in damages in its handling of her family's matters. Nupson is part of the Middleton family, which owned tobacco manufacturer Bradford. Her brother, John Middleton, owns the Philadelphia Phillies.

Nupson alleged that Schnader engaged in conflicts by representing multiple members of the family, and that the firm concealed information from her regarding her inheritance and her shares in the family business. According to court filings, the firm began representing the Middleton family in 1994.

In 2002, Schnader's motion said, members of the family entered into a conflict waiver. But Nupson has alleged that the conflict waiver was inadequate because it did not address each matter the firm was involved in as a separate representation, and did not identify the potential conflicts of interest.

Nupson has alleged that in a 2003 sale of Bradford stock, in which Schnader represented Nupson and her mother, she was misled about her rights and the value of her shares. As a result of the transaction, John Middleton became the sole owner of Bradford.

In her complaint, Nupson claimed that her trust received about $19.5 million for her shares, and that she learned later they were worth at least $334.8 million.

Schnader contends that Nupson was aware of the alleged conflicts of interest at least three years before bringing her suit against the firm, citing her filings in Montgomery County Orphans' Court from 2015 and a letter from her general counsel dated June 5, 2014.

“She then waited more than four years to file this lawsuit, presumably to suit her litigation strategy against John, but certainly not because she was unable to discover her alleged claims,” the motion to dismiss said.

In a separate case, Nupson and her brother reached a settlement agreement last year, the motion said, in which Nupson received $22 million.

Nupson's lawyer, Brian Gordon of Gordon & Ashworth in Bala Cynwyd, declined to comment on Schnader's motion to dismiss.

|

Read More

From Counsel to Client: Law Firm Litigation in 2018