Law firm Parker McCay and former attorney Mariel J. Giletto have been sued in New Jersey state court by a former client. The malpractice suit accuses the firm of failing to advise the client, Giglio DiBattista, about the impropriety of withdrawing hundreds of thousands of dollars from a construction company.

Parker McCay Hit With Malpractice Suit : Allegations and Legal Background

Plaintiffs Giglio DiBattista and his business, Nacom Companies Inc., filed the lawsuit on Thursday. They claim Parker McCay and Giletto, who now works at Flaster Greenberg PC, failed to provide appropriate and timely legal advice, leading to litigation between DiBattista and his business's shareholders.

The lawsuit adds to the legal troubles faced by Parker McCay, as its CEO, Philip A. Norcross, was recently accused of racketeering alongside his brother, New Jersey businessman George E. Norcross III, and four others in an indictment unsealed Monday.

Parker McCay Hit With Malpractice Suit : Case Details

According to the complaint, DiBattista was a part owner and vice president of General Civil Co. Inc., a New Jersey corporation certified as a service-disabled veteran-owned small business. DiBattista owned 19.05% of the company's voting stock but could not own a majority due to his non-veteran status. Despite this, he was the sole individual contributing significant cash to finance the company's operations.

In 2018, DiBattista decided to withdraw from General Civil but promised to fund existing projects. He sought advice from Parker McCay on withdrawing funds from the company, even though no formal loan or transactional documents existed at the time.

Parker McCay accepted the engagement in August 2018 and began providing legal services, despite the engagement letter remaining unsigned. DiBattista paid for the services, confirming Parker McCay's role as his attorney.

Withdrawal Controversy

On August 22, 2018, DiBattista informed Giletto of his plan to withdraw a significant amount of money from the company and requested the preparation of necessary documents. Giletto allegedly responded by inquiring if the funds had been withdrawn and assured that the required documents would be prepared.

DiBattista withdrew $100,000 on September 5, followed by an additional $270,000 on September 28. He informed the defendants of these withdrawals but was not told that they might be legally prohibited. Documents to memorialize the withdrawals were only sent on October 11.

In late October, General Civil's other shareholders fired DiBattista and sued him in November for breach of fiduciary duty and conversion, focusing on the $270,000 transfer. DiBattista claims this was the subject of his inquiry to Parker McCay.

Legal Malpractice and Consequences

Parker McCay and Giletto represented DiBattista in the lawsuit without advising him to consult or engage other counsel. The court required DiBattista to return the funds and provide evidence of authorization for the withdrawals. Lacking paperwork, DiBattista and Nacom eventually settled the case.

DiBattista and Nacom paid nearly $336,770.97 in litigation fees, though Parker McCay claimed a remaining balance of $19,000, which was sent to a debt collection agency. DiBattista negotiated with the agency but could not resolve the fee issues as Parker McCay insisted he sign a general release without consulting independent counsel.

Parker McCay Hit With Malpractice Suit : Claims and Responses

DiBattista has filed claims for breach of contract, legal malpractice, breach of fiduciary duty, negligence, and vicarious liability. Raphael Rosenblatt of Rosenblatt Law PC, representing the plaintiffs, had no further comment beyond the complaint.

Parker McCay did not immediately respond to requests for comment. Giletto was unavailable for comment, according to a Flaster Greenberg representative.