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New York law firm's malpractice costs Marcum LLP millions, lawsuit says

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Saturday, November 23, 2024

New York law firm's malpractice costs Marcum LLP millions, lawsuit says

State Court
Costiganandrew

Costigan

NEW YORK (Legal Newsline) - An accounting and advisory services firm has filed a lawsuit against a law firm that allegedly failed to adequately represent it in litigation, according to court documents filed in the Supreme Court of the State of New York. 

Independent public accounting firm Marcum LLP hired L'Abbate, Balkan, Colavita and Contini, LLP, both companies of New York, to defend the firm in a civil litigation. Specifically, Marianne Conklin was the counsel from the firm representing Marcum, says a Feb. 15 complaint.

Marcum's insurers, Lexington Insurance Company, Continental Casualty Company and Fireman's Fund, had agreed to cover Marcum in a lawsuit brought against the firm.

The suit states that the accounting firm gave its legal representation all documents thought to be needed for the discovery phase of the lawsuit. However, the phase reached its deadline and the law firm had not produced the documents it was given by Marcum, the suit says. Additionally, in its haste, the law firm accidentally disclosed attorney-client privileged information to the plaintiff, the suit says.

After its errors, L'Abbate withdrew from representing Marcum, causing the accounting firm to turn the case over to its backup counsel, the suit says. 

The plaintiffs say that the law firm's negligence cost it millions of dollars in losses and expenses. The plaintiffs in the case against the accounting firm filed a motion for sanctions against Marcum. 

Marcum is seeking damages for legal malpractice against L'Abbate. It is represented by Andrew Costigan of Freeborn and Peters LLP, of New York. 

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