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America September 5, 2024 2 mins read

Troutman Pepper Faces $59M Malpractice Suit

America ı By Rihem Akkouche

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Troutman Pepper $59M Malpractice Suit

Queens-based construction company Judlau Contracting has filed a $59 million malpractice lawsuit against law firm Troutman Pepper Hamilton Sanders LLP, accusing the firm and its partner Frank T. Cara of inadequate legal representation in two significant cases. The complaint was filed in New York state court on Wednesday, alleging that the firm's negligence led to substantial financial losses for Judlau.

Troutman Pepper $59M Malpractice Suit : Allegations of Professional Negligence

Judlau, a subsidiary of national general contractor OHLA USA, claims that Troutman Pepper's mismanagement resulted in a $44 million loss in a wage lawsuit brought by nonunion workers. The workers claimed they were underpaid for performing union-level tasks, but Judlau asserts that the law firm failed to properly investigate and defend against these allegations. The company insists that the nonunion workers never performed the work in question.

In a separate case, Judlau lost a $15 million judgment after a subcontractor sued over delay costs related to the Second Avenue subway project in Manhattan. The company alleges that Troutman Pepper’s failure to defend against inaccurate legal theories led to the unfavorable outcome.

Failure to Communicate and Conflict of Interest Claims

The lawsuit also accuses Troutman Pepper and Cara of failing to keep Judlau informed, alleging that the firm ignored requests for updates and provided outdated or incorrect information. Furthermore, the suit claims Cara was conflicted while representing Judlau, as he was simultaneously serving as general counsel for competitor Iovino Enterprises. According to the complaint, this conflict may have compromised Cara’s performance, including during a pivotal 2019 hearing in which the nonunion workers won class certification.

"Cara was likely so distracted by his other obligations that he neglected the case, leaving the crucial argument to an underqualified attorney," Judlau argues in its complaint.

Troutman Pepper Faces $59M Malpractice Suit : Seeking Damages and Accountability

Judlau is pursuing $59 million in damages from Troutman Pepper and Cara, including the disgorgement of legal fees paid in the underlying cases. "We regret that this lawsuit became necessary, but we had no choice," said Judlau COO Brad Nystrom in a statement.

Judlau is represented by Jonathan D. Lupkin of Rottenstreich Farley Bronstein Fisher Potter Hodas LLP and Lauren J. Wachtler of Barclay Damon LLP. Counsel information for Troutman Pepper and Cara was not immediately available.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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