Getting sued for malpractice, even if the claims lack merit, is never fun. Earlier this week, we wrote about Seyfarth Shaw, which is being sued by Tae Bo star Billy Blanks for malpractice (and being sued by a current partner for breach of fiduciary duty, among other claims).
Let’s declare this week “West Coast Malpractice Week” here at Above the Law. Yesterday a California appellate court reinstated a malpractice lawsuit against the super-prestigious firm of Simpson Thacher & Bartlett and two of its partners, George Newcombe and Alexis Coll-Very, based in STB’s Palo Alto office.
The underlying lawsuit is somewhat complex; here’s the gist of it. Simpson Thacher represented PrediWave Corporation, a (now-bankrupt) California technology company, and its former CEO and president, Jianping “Tony” Qu. Prediwave alleges that Tony Qu was essentially looting the company, siphoning away its assets, and that Simpson Thacher — which represented both the company and Qu, a claimed conflict of interest — didn’t adequately protect the company’s interests against Qu (and even made it more difficult for the company to investigate Qu and his alleged self-dealing).
In the trial court, Simpson Thacher — represented by another powerhouse firm, Munger, Tolles & Olson (aka West Coast magnet for SCOTUS clerks) — won dismissal of the lawsuit, pursuant to California’s “anti-SLAPP” statute. If you’re not familiar with anti-SLAPP statutes, one of a blogger’s best friends (along with Section 230), here’s a brief description:
SLAPPs are Strategic Lawsuits Against Public Participation. SLAPPs are lawsuits filed against people or organizations because they have exercised their right to petition the government or speak out on public issues. SLAPPs frequently contain claims for libel, slander, defamation, malicious prosecution, and/or abuse of process.
Can an anti-SLAPP law be used to secure swift dismissal of a malpractice action brought by a client against its former counsel? PrediWave, represented by Squire Sanders and California appellate boutique Horvitz & Levy (previously discussed here), argued that this is not a proper application of the statute. In its opinion (PDF), the California Court of Appeal (Sixth Appellate District) agreed, reinstating the suit against Simpson. (The court did not address the underlying merits of the case, leaving those to the trial court on remand.)
More discussion — including a statement from Simpson Thacher, which calls Prediwave’s claims “baseless” and declares that STB will “defend this claim vigorously” — after the jump.
Continue reading “Malpractice Suit Against Simpson Thacher Reinstated on Appeal”