In a recent split decision, the Virginia Court of Appeals affirmed the dismissal of a legal malpractice action involving a Chapter 11 bankruptcy petition. The case was deemed to be time-barred and it was determined that the attorney in question did not provide continued services following the conversion into a Chapter 7 liquidation.
The case involved Smith Development Inc., which, in 2008, retained the legal services of Martin Conway and his firm, Pesner Kawamoto Conway. The firm was engaged to file a Chapter 11 bankruptcy petition and secure a plan of reorganization for Smith Development. The existing engagement letter stipulated that it did not include advice or representation on any matter not specifically described, also claiming no responsibility for other legal matters unless they were specifically requested and confirmed in writing.
In a lone dissenting opinion, Virginia Court of Appeals Judge Doris Henderson Causey stated, “Conway ignored their ethical and contractual obligation to Smith, which is a basis of Smith’s legal malpractice claim. It was improper for the trial court to resolve this issue in favor of Conway on summary judgment by finding that there was an implied contract for the Chapter 7 representation.”
For more specific details and further context about this complex legal matter, please refer to the first-hand account of this recent Appeals Court decision at Law.com.