Suit claims 'aggressive litigation' against law firm drove it into bankruptcy
Two Georgia lawyers claim “aggressive litigation” against them and their firm damaged their reputations and drove the firm into bankruptcy.
Lawyers Mark and Gerard Wittstadt filed suit July 11 against the law firms Gordon & Rees and Barnes & Thornburg, along with nine lawyers from the firms, for alleged abusive litigation and defamation, according to the Daily Report (sub. req.).
The Wittstadts’ law firm, Atlanta-based Morris Schneider Wittstadt, filed for bankruptcy in July 2015, a year after the Wittstadts accused former managing partner Nathan Hardwick IV of embezzlement. Hardwick—who denies wrongdoing—was indicted in February for allegedly embezzling more than $20 million from the firm and an affiliated title agency.
One of the defendants in the Wittstadts’ July suit is high-profile Atlanta sports lawyer, W. David Cornwell Sr., who worked at both Gordon & Rees and Barnes & Thornburg while he represented pro golfer Dustin Johnson in his suit against the Wittstadts’ firm, according to the Daily Report account. Johnson’s suit claimed he loaned $3 million to the firm that was not repaid; the suit settled in April.
According to the Wittstadts’ suit, the settlement agreement in the Johnson litigation provided that Johnson was a client of the law firm, but not the Wittstadts, and the Wittstadts were not involved in securing the loan from Johnson. They alleged Hardwick sought the loan from the golfer.
The Wittstadts say they were wrongly accused of stealing money from Johnson when Cornwell said in interviews with industry publications that the law firm’s lawyers were “liars.”
Cornwell did not comment when contacted by the Daily Report. Barnes & Thornburg told the publication it “will vigorously oppose the allegations and respond to them through the court.” Gordon &* Rees did not respond to the publication’s request for comment.
