06/12/2007
New York Court Holds Firm Must Disgorge Fees Based on Breach of Fiduciary Duty for Disloyalty to Client
Ulico Casualty Company v. Wilson, Elser, Moskowitz, Edelman & Dicker
Brief Summary
The court held that while the law firm had the right to represent competitors of a client, it did not have the right to assist a competitor in setting up a competing business entity with the expectation that the client’s existing business would be transferred to the new entity. The court granted summary judgment in the client’s favor on its breach of fiduciary duty claim and ordered that fees be disgorged for the period of disloyalty.
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