Va. Court Split Over Lawyer’s Work as Unique Counsel in Chapter 7 Matter

In a 2-1 choice, the Virginia Court of Appeals verified the termination of a legal-malpractice action versus a lawyer employed to submit a Chapter 11 personal bankruptcy petition as being time-barred, discovering that counsel likewise did not supply ongoing legal services when the court transformed the case to a Chapter 7 liquidation.

In 2008, Smith Advancement Inc. employed Martin Conway and his company, Pesner Kawamoto Conway, to submit a Chapter 11 personal bankruptcy petition and get a strategy of reorganization. The engagement letter in between the customer and lawyer stated that it “did ‘not consist of representation or suggestions … on any other matter not particularly explained,'” which the “law office was not accountable for other legal matters unless ‘particularly asked for and validated by us in composing,'” according to the bulk viewpoint submitted Tuesday.

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