Law Firm Misses Out On Legal Work, Sues The (Potential) Client
This is one way to deal with missing out on new business.
New Jersey law firm Jaffe & Asher LLP is not handling Wells Fargo’s consumer debt collection business. That may not seem like noteworthy news; after all, there are hundreds of firms that aren’t doing work for Wells Fargo. But according to a lawsuit filed Friday in New York Supreme Court, the firm had been promised the work, and had even moved locations and renovated the office space to accommodate the anticipated work. Law360 has the details:
Wells Fargo Bank NA and Wells Fargo Financial, National Bank are being sued by an assignee of the claims known as End Line Investors Ltd., an entity that lists the same address as Jaffe & Asher’s Manhattan headquarters, for promissory estoppel, negligent misrepresentation, breach of contract and breach of good faith and fair dealing.
The suit alleges that in 2013, Wells Fargo began discussions with the firm to potentially handle approximately 2,000 New Jersey cases — if only the office space were up to Wells Fargo’s audit standards. In reliance on that representation, Jaffe & Asher allegedly began the expensive process of getting their office up to snuff. But, alas, they never saw the new business:
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In reliance on those discussions, the law firm decided to cancel its then-existing New Jersey office’s sublease and open up “a dedicated New Jersey office” outfitted with information technology, security, clerical assistance and other site preparation to meet Wells Fargo’s audit standards, according to the suit.
But despite taking those steps, Wells Fargo “failed to place all of its existing and future New Jersey accounts with the firm,” the suit says.
“The firm never received the promised consideration that was bargained for in exchange for its opening up a New Jersey office to meet Wells Fargo’s audit requirements; instead, the firm ultimately received only a small number of Wells Fargo New Jersey accounts,” the suit states.
Well, at least they’ve got a shiny new office for their trouble.
Wells Fargo Jilted Law Firm It Promised Debt Biz, Suit Says [Law360]
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Kathryn Rubino is an editor at Above the Law. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).