Biglaw

Biglaw Firm Could Pay $1.4 Million After Malpractice Verdict

The verdict is in, but that doesn't mean the firm will go gentle into that good night.

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Yesterday, Alston & Bird received a jury verdict in a malpractice lawsuit, holding them 32 percent responsible for a former company manager’s theft from a client. Their (now former) client, family-held Hatcher Management Holdings LLC, took a loss after former manager, Maury Hatcher, cashed out of the business, allegedly at an inflated price in addition to hundreds of thousands of dollars in self-dealing fees. Hatcher Management Holdings alleged Alston & Bird partners assisted the departed Maury Hatcher from providing company members access to financial records and documents after he left the company.

Now the jury has returned a verdict in the malpractice case, finding Alston & Bird 32 percent to blame. They also found Maury Hatcher 60 percent liable, and Hatcher Management Holdings got 8 percent of the blame. The jury award $697,614 in damages and $341,831 in interest, which needs to be apportioned according to blame. They also awarded ~$1.1 million in fees and expenses, which the firm has to cover in full (and makes a pretty compelling argument in hindsight in favor of settling).

The actual total amount A&B is on the hook for is still unknown — as Law.com reports, there is some discrepancy on how the apportionment will breakdown:

The verdict left both sides’ lawyers arguing over what the apportionment breakdown means. Lead plaintiffs attorney Harmon Caldwell told Superior Court Judge Craig Schwall the awards should only be reduced by the 8 percent blamed on Hatcher Management.

Defense attorney Richard Robbins said the verdict means Alston & Bird is only responsible for 32 percent of the entire award, including the fees and expenses.

Schwall said the plaintiff’s version didn’t seem to comport with the apportionment law.

“What’s the point of the apportionment statute if you can’t reduce nonparty fault?” he asked.

“I don’t know the answer,” Schwall added, instructing both sides to draft briefs outlying their arguments.

But, unsurprisingly, the fight isn’t over for the Biglaw firm. Their lawyer says, “This verdict will be on appeal for the next four years.”

headshotKathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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