Beckman, Kelly & Smith Wins Summary Judgment for Law Firm Client

Beckman, Kelly & Smith recently obtained summary judgment for a prominent Northwest Indiana law firm in a legal malpractice claim.

The client lawyer and his firm represented an LLC of associated medical specialists over an extended period of time. One of the physicians became dissatisfied with his situation, and this spawned litigation between the physician and the other members of the LLC. Claims and counterclaims seeking injunctive relief, an accounting of the LLC’s affairs, and damages for misrepresentation in a stock purchase agreement, breach of fiduciary duties, tortious interference, underpayment of compensation and defamation resulted.

The client lawyer represented the LLC in this litigation, which was ultimately resolved. The settlement was embodied in a disaffiliation agreement and a release, under which the disaffected physician released the LLC, its officers, shareholders, directors, “agents, independent contractors and representatives” from any claim arising before the date of the settlement.

Thereafter, the disaffected physician filed suit against the client lawyer, alleging he had violated ethical duties and committed fraud by representing the LLC against the physician. The Lake Superior Court granted the client lawyer’s motion for summary judgment based on the release. As attorney for the LLC, he was an “agent, independent contractor (or) representative” of the released LLC and therefore protected by the release.

Call Dan Glavin if you have questions about this case or any issue relating to lawyers’ professional liability issues.