Pennsylvania has seen a couple important updates in its case law concerning lawyers’ professional liability regarding: (1) pre-judgment interest for a plaintiff’s damages award, and (2) enforceability of arbitration agreements regarding a fee dispute.
Premier Capital, LLC v. DeCecco.
The Pennsylvania Superior Court held that a prevailing plaintiff in a legal malpractice lawsuit was not entitled to pre-judgment interest on a damages award. The plaintiff, Premier Capital, prevailed in a legal malpractice claim against its attorney. The jury found that the attorney failed to timely transfer title of real property to Premier Capital and that the property was subsequently damaged by a fire. The jury awarded $750,000 in damages to Premier Capital.
The trial court denied Premier Capital’s request for pre-judgment interest on the $750,000. Premier Capital appealed, and the Superior Court upheld the trial court’s decision. The Superior Court stated that neither 42 Pa.C.S. § 8101 nor PA Rule of Civil Procedure 238 provided a basis for pre-judgment interest in a legal malpractice lawsuit. Further, the Court held that there was no equitable basis to award pre-judgment interest because the law firm did not “wrongfully or fraudulently” possess the $750,000.
PeriRx, LLC v. Harras, Boom & Archer, LLP
An Eastern District of Pennsylvania Judge held that PeriRx’s claim against its law firm seeking return of its $500,000 retainer was subject to arbitration pursuant to the retainer agreement. PeriRx alleged that the law firm failed to provide an adequate description regarding what the $500,000 retainer would be used to cover. In conjunction with a legal malpractice claim agaisnt the firm, PeriRx also sought a return of the $500,000 retainer. While PeriRx was permitted to pursue its legal malpractice claims in federal court, the Court ruled that its conversation claim regarding the $500,000 retainer was bound by the contractual language of the retainer agreement, which specifically included “attorney’s fees” and “fee disputes.” Therefore, that portion of PeriRx’s claim was dismissed.
StraightforWARD Legal Advice:
Legal malpractice and related claims often involve several nuanced issues, such as those in the Premier Capital and PeriRx. Attorneys with questions about lawyers’ professional liability should contact attorney Christopher M. Curci, Esq. at ccurci@thewardlaw.com or 215-647-6603.