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Bradley Arant Boult Cummings LLP, a prominent law firm, and one of its former attorneys, S. David Smith, have been hit with a federal lawsuit in California. The suit, filed by Rockhill Consulting Group LLC and its president, Daniel R. Koetting, accuses the firm and Smith of negligence and breach of fiduciary duty during a 2018 arbitration that allegedly resulted in at least $17.5 million in damages for the plaintiffs.

Allegations of Legal Malpractice and Breach of Duty

The lawsuit centers on Bradley Arant's representation of Rockhill Consulting Group and Koetting in a dispute with a tribal lending entity owned by the Big Lagoon Rancheria, a federally recognized Native American tribe in California. The plaintiffs claim that the firm's legal services "fell far below the standard of care," leading to an unfavorable outcome in the arbitration.

According to the complaint, Bradley Arant made the questionable decision to consolidate Rockhill's claims with those from another dispute involving Koetting's brother, despite the distinct business operations of the two companies. The plaintiffs argue that this decision, along with inadequate preparation for the arbitration, led to a "one-sided, superficial and disorganized presentation," ultimately resulting in a significant judgment against Rockhill.

Claims of Poor Preparation and Conflict of Interest

The lawsuit alleges that Bradley Arant and Smith failed to properly analyze evidence, initiate timely discovery, or designate necessary experts, despite the complex accounting and damage issues involved in the case. Additionally, the plaintiffs contend that the firm did not adequately inform them of potential conflicts of interest arising from its joint representation of the Koetting brothers and their respective companies.

As a result of the firm's alleged negligence, Rockhill and Koetting claim they have incurred over $17.5 million in damages, including inflated arbitration judgments, post-arbitration legal fees, and related costs.

Bradley Arant Negligence Lawsuit : Background of the Dispute

The underlying arbitration stemmed from a contractual relationship between Rockhill and the tribal lending entity, Green Gate Services LLC, established in 2013 to operate an online consumer lending program. The relationship soured in 2017 when Green Gate refused to renew Rockhill's license, leading to the eventual termination of their agreement and Rockhill's access to critical bank accounts.

In 2018, as tensions escalated, Rockhill retained Bradley Arant to represent it in the arbitration. However, the plaintiffs now argue that the firm’s mishandling of the case and failure to address key legal and procedural issues directly contributed to their financial losses.

Bradley Arant Negligence Lawsuit : Legal Action and Response

Rockhill Consulting Group and Koetting are seeking damages, legal costs, and a refund of all fees paid to Bradley Arant, claiming they received no value from the firm's services. The lawsuit also highlights the broader implications of legal malpractice, particularly in high-stakes arbitration cases where proper preparation and representation are crucial.

In response to the lawsuit, a spokesperson for Bradley Arant stated, "Bradley Arant Boult Cummings LLP is committed to upholding the highest standards of confidentiality and professionalism in all legal matters; we, therefore, do not comment on ongoing litigation involving our clients, attorneys or the firm." Smith, who now serves as associate general counsel for Sunnova Energy, could not be reached for comment.

Rockhill Consulting Group and Koetting are represented by Robert K. Sall and Lara A.S. Callas of Sall Spencer Callas & Krueger ALC. Counsel information for Bradley Arant and Smith was not immediately available.