A Florida-based tax law firm, J. David Tax Law Firm LLC, is currently dealing with allegations of malpractice. In response to these allegations, the firm attempted to enforce an arbitration clause in its retention letters. However, its former clients have countered this move, stating that such a clause is unenforceable under state law.
The ex-clients’ counterclaim was lodged in a federal court, where they insisted that the arbitration clause was solely relevant in a collection suit context and does not extend to a class-action lawsuit aimed at recovering illegal fees or addressing statutory misrepresentation allegations. Additionally, they argue the clause cannot be used for malpractice allegations. They contend the arbitration clause is ambiguous at best, an assessment based on how J. David had written it.
In a bid to right the perceived wrong and get some form of recompense, the ex-clients are seeking damages in court, as well as an order for the tax law firm to disgorge attorney fees that were paid to J. David.
For a detailed overview of this unfolding saga, visit the complete coverage in Bloomberg Tax here.