Last week we told you about the arbitration brought against the Biglaw firm Husch Blackwell by, what I presume is now a former client, engineering firm Burns & McDonnell. Burns & McDonnell alleged that Husch Blackwell partner Charles Renner, in his role as outside counsel for the Kansas City city council, tanked their bid to build the new KC airport. Meanwhile another client of Renner’s ultimately scored the airport contract.
The arbitration panel found Renner breached his duty of loyalty to a firm client. They awarded Burns & McDonnell $62 million, representing the anticipated profits to the engineering firm, had it won the contract.
There was a confidentiality clause in the arbitration agreement, so Husch Blackwell has been mum on the entire sitch. At least publicly.
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Internally, an email sent by Paul Eberle, the firm’s chief executive officer, and Catherine Hanaway, the firm chair, provides a tiny bit more detail on how the firm’s dealing post-decision. The email reveals that the firm thinks the decision is “wrong on its merits,” but it will move forward “despite this setback.”
Importantly — particularly given Biglaw concerns over a coming economic downturn — the email makes clear that there will not be a “material impact on the firm’s financial condition.” Good ole’ professional liability insurance will be covering the costs.
You can read the full email below.
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Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. 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 or Mastodon @[email protected].