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A law firm failed to establish that a corporate chairman and principal shareholder was personally liable for attorneys fees, and the firm should not have been granted summary judgment in a suit over an unpaid legal bill, a federal appeals court has ruled.

A three-judge panel of the U.S. Court of Appeals for the Second Circuit found that the firm, LeBoeuf, Lamb, Greene & MacRae, wrongly assumed that the head of a group of corporations should be held responsible for more than $200,000 in fees and interest in LeBoeuf v. Worsham, 98-7941.

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