Litigation Funding Puts Attorneys in Hot Water
A client sued his lawyers alleging legal malpractice, breach of contract and seeking an accounting in conjunction with their engagement to collect no-fault insurance proceeds on his behalf. He complained the law firm commenced various collection actions and, after collecting those proceeds, remitted them to three different companies that had agreed to advance money in anticipation of reimbursement from the no-fault proceeds. The law firm sought to uphold dismissal of the claims based on various releases signed by the plaintiff related to the payment of funds to the agents. However, the appellate court reinstated the claims for legal malpractice and accounting because the defendants did not establish the releases unambiguously encompassed these causes of action.