DLA Piper LLP will face a legal malpractice suit in New York State Court after a ruling by the Second Circuit Court of Appeals. Initially, the case was removed to federal court, where it was dismissed on the grounds that it was untimely. However, the appeals court determined that the federal district court did not have the jurisdiction to make such a ruling.
The federal district court’s assertion of jurisdiction was based on the claim that the case presented significant federal issues, thus allowing it to fall within a narrow category of state law claims. The court then dismissed the case as time-barred. Despite this, the Second Circuit underscored that the importance of a federal issue to the federal system as a whole should be the determining factor for jurisdiction, according to Judge Reena Raggi.
This decision by the Second Circuit effectively nullifies the prior dismissal and sends the malpractice suit back to state court for further proceedings. For more detailed coverage on this development, visit the original article on Bloomberg Law.