(Credit: Lane V. Erickson/Adobe Stock) Virginia Appellate Court Split Over Legal-Malpractice Suit, Attorney's Continued Representation as Special Counsel in Chapter 7 Liquidation
"Conway ignored their ethical and contractual obligation to Smith, which is a basis of Smith's legal malpractice claim. It was improper for the trial court to resolve this issue in favor of Conway on summary judgment by finding that there was an implied contract for the Chapter 7 representation," Virginia Court of Appeals Judge Doris Henderson Causey wrote in a dissenting opinion.
January 11, 2024 at 11:30 AM
5 minute read
In a 2-1 decision, the Virginia Court of Appeals affirmed the dismissal of a legal-malpractice action against an attorney hired to file a Chapter 11 bankruptcy petition as being time-barred, finding that counsel also did not provide continued legal services when the court converted the case to a Chapter 7 liquidation.
In 2008, Smith Development Inc. hired Martin Conway and his firm, Pesner Kawamoto Conway, to file a Chapter 11 bankruptcy petition and obtain a plan of reorganization. The engagement letter between the client and attorney said that it "did 'not include representation or advice … on any other matter not specifically described,'" and that the "law firm was not responsible for other legal matters unless 'specifically requested and confirmed by us in writing,'" according to the majority opinion filed Tuesday.
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