Lawyers Differ on Blame in $1.6M Duane Morris Malpractice Case
Lawyers for Duane Morris and a former client differed in closing arguments yesterday on who should be blamed for his inability to collect money promised in a settlement agreement.
A lawyer for ex-client Joseph Adlerstein, who received only $200,000 under the $1.8 million settlement agreement, argued the law firm should have included a security guarantee in the pact. The agreement called for payments of $200,000 every six months. But a lawyer for Duane Morris said Adlerstein’s own decisions and risk-taking caused him to lose the money, the Legal Intelligencer reports. Duane Morris claims Adlerstein rejected an earlier and less risky agreement that would have given him a lump sum of $800,000 within five days.
Adlerstein had hired Duane Morris to sue his troubled company, SpectruMedix, after it fired him and sold all of its stock to a new investor. The $200,000 Adlerstein received under the settlement agreement went to pay his legal bills.
Duane Morris lawyer Nicholas Centrella said the law firm had asked for security but it was declined—yet Adlerstein signed the agreement anyway. Adlerstein’s lawyer, Clifford Haines, questioned whether there was ever a request for security. He said Duane Morris should have advised Adlerstein that signing the second agreement was a bad decision.
