A California appeals court has upheld a $941,000 legal malpractice
verdict against Wilson Elser Moskowitz Edelman & Dicker, but has
thrown out $1.7 million of the original award given to the firm's
former client.
The California Court of Appeal, Second District, on May 28 affirmed the
$941,000 award to Cal-City Construction, a company that had hired
Wilson Elser after the Los Angeles Unified School District removed the
company from one construction project and refused to make payments on
another.
According to the decision, Wilson Elser had advised the construction
company to walk off the job on the second project. However, prior to
the construction company's breach of contract trial against the school
district, the law firm told the client that it should not have walked
off the job, and that its only option was to settle under unfavorable
terms.
In the malpractice action against Wilson Elser, the jury found the law
firm liable for $2.5 million in damages, which included $941,000 in
damages related to the adverse settlement and $1.7 million for lost
future profits.
But the appeals court found that the construction company's evidence of
lost profits was "speculative and uncertain," and that the lower court
should have granted the law firm a partial
judgment-notwithstanding-the-verdict motion at trial.
Thomas Hyland, managing partner of Wilson Elser's New York office, said the firm was evaluating the decision.
"We are disappointed that any part of the verdict against our firm was
affirmed, but we are pleased that the majority of claim has been
knocked out," Hyland said.
Wilson Elser has about 800 attorneys in 20 offices.
-- Leigh Jones