Seyfarth Shaw has lost its bid to immediately dismiss a $157 million legal malpractice suit brought by a bankrupt restaurant company. A New York bankruptcy judge on Tuesday allowed the malpractice case to proceed.

Blue Dog at 399 Inc., which planned to open a restaurant at 399 Park Ave., filed for Chapter 11 in 2015 to prevent its landlord from repossessing its space. Seyfarth was eventually hired to represent Blue Dog in its suit against the landlord, a Boston Properties entity. Blue Dog alleges the law firm failed to file expert reports and complete discovery in a timely manner, leading key evidence to be excluded.

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