Linda Crouse hired the law firm of Brobeck, Phleger, & Harrison (BPH) to represent her in…

Linda Crouse hired the law firm of Brobeck, Phleger, & Harrison (BPH) to represent her in selling a partnership interest. David Boatwright was the BPH attorney responsible. She sold her interest for a promissory note of $7.25 million. Boatwright did not deliver the note to Crouse. Boatwright left BPH and became a partner at Page, Polin, Busch, & Boatwright (PPB&B). More than a year after the sale, Crouse told Boatwright that she did not have the note. When BPH transferred Crouse’s file to Boatwright at PPB&B it did not include the note. Boatwright negotiated a restructuring of the note by which Crouse would receive $6.25 million cash and a $1 million note for the $7.25 million note. The parties scheduled this restructuring to take place in six months. During this time Boatwright made no effort to find the $7.25 million note. The restructuring did not go through as scheduled because Boatwright could not produce the note. When Crouse sued Boatwright and the two law firms, BPH sued Boatwright for indemnity. Boatwright claimed that BPH’s suit violated its duty of loyalty and good faith. Did it?

 

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