Biglaw

New Lawsuit Accuses DLA Piper Of 'Strident Double-Dealing'

Ex-client alleges global firm worked both for it and against it.

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A new lawsuit filed in Kansas state court by propane supply company Ferrellgas Partners, an ex-client of Biglaw firm DLA Piper, alleges the firm engaged in “strident double-dealing” that was only revealed when the wrong invoice was mistakenly sent to Ferrellgas.

In July of 2018, the company hired DLA Piper for debt restructuring advice. According to the suit, the work on that matter naturally tapered off by November of that year, but the representation was not formally terminated. However, in November of 2019 Ferrellgas received a $14,000 invoice, signed by Thomas Califano — the same restructuring partner they’d previously worked with — for research about Ferrellgas. During that same time, the company was fielding hostile takeover threats.

The lawsuit says that after inquiries from Ferrellgas, DLA returned their client file and that the firm says an internal investigation revealed the client information was not used in connection with work for any other client. But the lawsuit draws the conclusion that the invoice revealed DLA was working for adverse interests:

“DLA’s breach of its fiduciary duties is obvious. DLA put itself on both sides of Ferrellgas’ restructuring efforts, having both (a) received highly confidential information from Farrellgas and advised it on its restructuring strategy, and (b) accepted the representation of an undisclosed entity with an adverse interest in Ferrellgas’ restructuring.”

As reported by Law.com, Ferrellgas is seeking a preliminary injunction to “prevent any ongoing and future misuse of Ferrellgas’ confidential information as well as permanent injunctive relief for DLA’s alleged breach of contract and fiduciary duty.” And seeks to hold DLA “responsible for the violation of fiduciary and contractual obligations to its client Ferrellgas and its improper conduct in advising one or more clients in matters directly adverse to Ferrellgas.”

DLA Piper has not yet commented on the lawsuit.

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headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. 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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