Malpractice suits against lawyers are an increasingly common feature in today's legal landscape with serious repercussions. Severe financial consequences and reputational damage make these cases extremely significant to law firms. Gibson, Dunn & Crutcher has been successfully defending law firms and their insurers in such cases for the past 30 years with aggregate claims of over $2 billion. Indeed, in cases where the Firm has obtained outright dismissals, those matters alone reduced claims in excess of $2 billion. With its record of success and the resources to handle all facets of these significant and high-risk cases, the Firm is positioned to handle the most serious and complex malpractice claims any law firm anywhere might face.

Legal malpractice cases consist of two cases in one--the malpractice claim itself and the underlying lawsuit or transaction. Gibson, Dunn & Crutcher clients benefit from the Legal Malpractice Defense Group's ability to marshal the Firm's expertise in the legal malpractice arena and to assess and respond to the underlying lawsuit or transaction. The Group is skilled in every area of business law, from real estate investment and conflicts to tax and corporate acquisitions. Clients also benefit from the Firm's willingness to try cases, and for its record of success in winning those cases both before and after trial. This reputation also enables the Firm to obtain unusually favorable settlements. Over the years, scores of prominent law firms from coast to coast have selected Gibson, Dunn & Crutcher's Legal Malpractice Defense Group to handle multi-million dollar claims. Many involved actions against firms based in major cities such as Boston, Chicago, Cleveland, Dallas, Honolulu, Houston, Los Angeles, Milwaukee, New Orleans, New York, Omaha, Palo Alto, Philadelphia, Portland, San Diego, San Francisco, Seattle, St. Louis and Washington, D.C. The issues range from an arbitration about an oil field in Asia to celebrity infomercials in Los Angeles, from health care transactions to large project development contracts with environmental issues. In more than half of the cases, Gibson, Dunn & Crutcher lawyers won on dispositive motions, saving clients and their insurers considerable time and money.

These results have been achieved often and when the stakes are high. For example, Gibson, Dunn & Crutcher obtained summary judgment in a $275 million lawsuit brought by the Los Angeles Unified School District against a large international law firm related to the development of a 5,500 student learning academy on land with environmental issues. Shortly before, the Firm obtained summary judgment in a $200 million lawsuit in a matter where a state health care agency alleged that the law firm had induced the state to issue improper loan guarantees. In another example, the Firm obtained a defense verdict after a lengthy trial on behalf of a law firm client related to a celebrity infomercial. The Firm also made new law when it persuaded the California Court of Appeal to preclude derivative legal malpractice actions as a matter of law in a published opinion.

A Different Approach

Gibson, Dunn & Crutcher's clients receive benefits unique in the legal industry. The Legal Malpractice Defense Group's knowledge of applicable law is always current. Attorneys in each office monitor statutory and case law that affects legal malpractice, and attorneys in different jurisdictions meet periodically to exchange information.

At Gibson, Dunn & Crutcher, cost efficiency results from lean staffing with lawyers experienced in malpractice law. One or two experienced partners in this field handle a case from beginning to end. In the words of one legal observer, "The firm is traditionally outnumbered but never outlawyered." The Legal Malpractice Defense Group's experience also has helped it develop strategies to defuse the common prejudice held by juries against lawyers. Recognizing that clients in these cases are sophisticated and knowledgeable, the Legal Malpractice Defense team involves them in every step, inviting clients to participate in devising strategies and giving them opportunities to reduce legal fees in areas where they can provide litigation support. The Gibson, Dunn & Crutcher team sends regular updates and computerized budget information to facilitate ongoing case analysis and accurate loss reserve determination. At any time, a client can obtain a computerized "snapshot" of actual and estimated costs. On-site computer technology also allows Gibson, Dunn & Crutcher to store, organize and retrieve millions of pieces of information in seconds in what is often a document-intensive dispute.

Anatomy of a Defense

Gibson, Dunn & Crutcher does not just win trials. The Firm also disposes of cases long before trial by creatively applying its broad knowledge of the law. In a recent example, Gibson, Dunn & Crutcher was substituted into a case to defend a Hawaii-based law firm that had represented one of two businessmen involved in a failed real estate deal. Prior to retaining Gibson, Dunn & Crutcher, the law firm paid a seven-figure settlement on a claim brought by one of the parties in the transaction.

Rather than simply recommending settlement with the other party to the transaction, Gibson, Dunn & Crutcher battled the case on two fronts, using a series of innovative theories and procedural tactics. For instance, when the plaintiff claimed his lawyer had failed to protect his interests, Gibson, Dunn & Crutcher raised an "unclean hands" defense that led to dismissal of that claim. When the plaintiff countered with a theory that the contract written by his lawyer had exposed him to a lawsuit, Gibson, Dunn & Crutcher persuaded the court that this theory was too speculative to have caused any compensable damage. Then, using a creative procedural argument, Gibson, Dunn & Crutcher established that the plaintiff had waited too long to request a trial. This provided an alternative basis for dismissal.

Practice Highlights

Gibson, Dunn & Crutcher lawyers have tackled a broad range of issues and achieved unparalleled dismissals and defense verdicts. Some of our more recent engagements include:

• Gibson, Dunn & Crutcher won a defense verdict after a lengthy trial in a $100 million lawsuit against a large Los Angeles firm for alleged malpractice in connection with a celebrity infomercial.
  
• Gibson, Dunn & Crutcher obtained a jury verdict finding plaintiffs 87% contributorily negligent in a $20 million lawsuit against a large Los Angeles firm for alleged malpractice related to estate planning, ERISA, tax, and real estate issues.
  
• Gibson, Dunn & Crutcher obtained dismissal of a $250 million malpractice lawsuit against a large Seattle-based law firm and two individual lawyers for alleged malpractice in connection with their representation of the plaintiff in a lawsuit against a prominent university regarding a series of technology license agreements.
  
• Gibson, Dunn & Crutcher won summary judgment in a $275 million lawsuit against a national law firm based in Los Angeles for alleged malpractice in connection with the development of a 5,500 student academy complex. The case involved issues related to real property acquisition, compliance with the California Environmental Quality Act, large construction project contracting and financing, environmental mitigation and remediation, and environmental insurance.
  
• Gibson Dunn & Crutcher obtained dismissal of a securities class action complaint against a national law firm based in the Midwest seeking $78 million in damages arising out of municipal bond offerings across the United States for the construction of health care facilities.  The defendant firm served as bond counsel.  The dismissal was upheld on appeal.
  
• Gibson, Dunn & Crutcher obtained dismissal of a derivative malpractice action against a large Chicago-based law firm related to the multi-million dollar merger of two hospital corporations. The Firm established new law in California essentially precluding derivative claims for legal malpractice. See McDermott, Will & Emery v. Superior Court, 83 Cal. App. 4th 378 (2000).
  
• Gibson, Dunn & Crutcher won summary judgment in a $200 million lawsuit against a large Los Angeles firm for alleged malpractice in connection with the financing and acquisition of non-profit hospitals in California. The Firm also won the appeal filed by the plaintiff, an agency of the State of California.
  
• Gibson, Dunn & Crutcher obtained dismissal of a $200 million federal court action for alleged RICO violations, unfair business practices, and fraud. The Firm also obtained affirmance of the dismissal by the U.S. Ninth Circuit Court of Appeals.
  
• Gibson, Dunn & Crutcher obtained summary judgment in favor of a Portland-based law firm in a $100 million lawsuit brought by various pension funds in connection with alleged fraud by the funds' ERISA investment manager.
  
• Gibson, Dunn & Crutcher obtained dismissal of a multi-million dollar lawsuit alleging malicious prosecution, Section 1983 violations, and abuse of process on behalf of a large Los Angeles-based law firm pursuant to California's anti-SLAPP statute.
  
• Gibson, Dunn & Crutcher successfully obtained a walkaway settlement on the eve of trial on behalf of a New York-based law firm in connection with a $25 million lawsuit for professional negligence, fraud, and breach of contract arising out of certain estate-planning activities and tax shelter devices.
  
• Gibson, Dunn & Crutcher persuaded a Los Angeles law firm's former client to abandon a multi-million dollar lawsuit arising out of an adverse jury verdict in a large construction contract dispute.
  
• Gibson, Dunn & Crutcher advised a large Midwestern firm in connection with the problematic departure of one of its partners and successfully avoided any litigation resulting therefrom.
  
• Gibson, Dunn & Crutcher has, on several occasions, successfully resisted jurisdiction in California over out of state law firms.
  
• Gibson, Dunn & Crutcher obtained a dismissal of a multi-million dollar lawsuit, on behalf of a Seattle based law firm, related to the acquisition of a hospital. Pre-trial motions in limine were granted such that plaintiff's damages claims were eliminated.
  
• Gibson, Dunn & Crutcher obtained a dismissal of a multi-million dollar suit against a Hawaii-based law firm over a failed real estate transaction and affirmance of that dismissal on appeal.
  
• Gibson, Dunn & Crutcher won summary judgment in a multi-million dollar lawsuit against a large Chicago-based law firm for alleged malpractice in connection with the merger of two entertainment companies.
  
• Gibson, Dunn & Crutcher not only obtained a favorable verdict, but also successfully sued the plaintiff for bad faith in a multi-million dollar case in Washington, D.C. involving the foreign promotion of automobile tires.
  
• Gibson, Dunn & Crutcher obtained a dismissal on demurrer of a million dollar suit by an ex-manager of entertainers. That ruling was affirmed by the California Court of Appeal.
  
• Gibson, Dunn & Crutcher won a defense verdict where the plaintiff claimed the law firm had failed to convert a general partnership to a limited partnership and had thereby subjected the plaintiff to unlimited exposure in connection with an accident at a construction site.
  
• Gibson, Dunn & Crutcher obtained dismissal of a lawsuit against a solo practitioner in an action involving alleged malpractice related to the creation of estate planning documents.
  
• Gibson, Dunn & Crutcher successfully obtained a defense verdict in a jury trial in a case against a labor lawyer arising out of union negotiations.
  
• Gibson, Dunn & Crutcher, representing a major California-based law firm, achieved summary judgment in a multi-million dollar suit arising out of the purchase and financing of a major Santa Monica office building.
  
• Gibson, Dunn & Crutcher obtained summary judgment for a large California-based law firm in a multi-million dollar suit based upon a failed real estate project.
  
• Gibson, Dunn & Crutcher won summary judgment, affirmed on appeal, for a law firm arising out of alleged malpractice in connection with a failed real estate joint venture.
  
• Gibson, Dunn & Crutcher filed a successful demurrer establishing that a California law firm, representing the general partners of a real estate developer, did not owe a duty to the limited partners.
  
• Gibson, Dunn & Crutcher won summary judgment on behalf of a Chicago-based law firm against a multi-million dollar claim for negligence arising out of financings by a Los Angeles bank.
  
• Gibson, Dunn & Crutcher won summary judgment in a multi-million dollar lawsuit against a large, Chicago-based law firm for alleged malpractice in connection with various lender liability issues.

Further Information

To learn more about our Legal Malpractice Defense Group, please contact the Practice Group Chair, Kevin Rosen, at (213) 229-7635 or at krosen@gibsondunn.com or Co-Chair, James P. Fogelman, at (213) 229-7234 or at jfogelman@gibsondunn.com.