Despite that distinction, the complaint alleges that Swanson and the firm treated the two companies as “one and the same” throughout the litigation, failing to assert defenses unique to Open Investments. The company claims Holland & Hart’s engagement letter confirmed joint representation of both entities but did not disclose any potential conflicts of interest or obtain informed consent for the dual representation.
“Instead of correcting the city’s mischaracterization, defendants adopted it,” the complaint states, asserting that the firm reinforced the premise that the parent and subsidiary were indistinguishable.
Open Investments further alleges that Swanson lacked prior experience serving as lead trial counsel in a case that went to verdict and that the firm did not offer alternative counsel with more substantial trial experience.
$21.4 Million Exposure
The Fort Collins case proceeded to a jury trial, where the city secured a $13.5 million verdict after jurors found the Open entities liable for fraudulent inducement. The trial court later entered a final judgment of $19.8 million, including restitution. With postjudgment interest and costs, Open Investments says the total now stands at approximately $21.4 million.
