Morgan Lewis offices in Midtown Manhattan. Photo: Ryland West/ALM Morgan Lewis Can't Escape Suit Alleging Conflict in Deal Work Led to Client Bankruptcy
A Chapter 7 trustee's claims accusing a Chicago partner of practicing law in California without a license and the firm of breaching its fiduciary duty advanced, but the California bankruptcy judge dismissed a claim of professional negligence without prejudice.
April 28, 2022 at 06:38 PM
4 minute read
The original version of this story was published on The Legal Intelligencer
A California federal bankruptcy judge on Wednesday advanced claims from the Chapter 7 trustee for a former Morgan, Lewis & Bockius client, which alleged the firm's dual representation of the agency and its owners in a stock sale created a conflict of interest that led to a 2019 bankruptcy filing.
U.S. Bankruptcy Judge Christopher B. Latham of the Southern District of California found that Ronald Stadtmueller, the trustee for IntegratedMarketing.com, could continue to pursue claims that alleged breach of fiduciary duty against the firm and accused a Chicago partner of practicing law in California without a license. But he dismissed a claim of professional negligence for an alleged breach of duty of care against Morgan Lewis and attorney Brian Hector, while giving the trustee a chance to amend the December complaint.
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