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Contact Working Here Search. Scott M. Berman Partner. Securities Litigation. Representation of a director and outside counsel for an offshore fund of funds that had invested in Madoff feeder funds in connection with clawback litigation brought by the Madoff liquidation trustee. Representation of two former directors of a Cayman holding company established to hold the equity of a worldwide logistics company in defense of a breach of fiduciary duty and other claims brought under Cayman law by the bankruptcy trustee for the logistics company.
Representation of large groups of institutional investors in Lancer Offshore, Inc. Representation of the liquidators of Carlyle Capital Corporation Limited, a failed residential mortgage-backed securities fund, in connection with litigation against the manager and directors of the fund in the United States and Guernsey, together with other counsel. Representation of a major bank as one of the defendants in an interpleader action with hundreds of millions of dollars at stake brought by the trustee of a student loan indenture concerning the way in which payments should be made under the waterfall of the indenture.
Representation of the principal of a failed hedge fund in bankruptcy proceedings. Plaintiff also knew that defendants continued to act as the Slotkys' attorney after plaintiff's employment ended, and he filed his lawsuit against the Slotkys. More importantly, the court emphasized that knowledge that an injury has been wrongfully caused "does not mean knowledge of a specific defendant's negligent conduct or knowledge of the existence of a cause of action.
The court held that plaintiff's claims against his partners for fraud could not be separated from a claim that defendants failed to protect him from that very same fraud. See also Blue Water Partners, Inc. Mason , IL App 1st ; Carlson v. Fish , IL App 1st Finally, plaintiff argued that public policy should preclude attorneys from raising an attorney-client privilege delaying disclosure of their wrongdoing long enough to raise a statute of limitations defense.
Specifically, plaintiff alleged that defendants obstructed discovery by claiming that the documents he requested in discovery were protected by the attorney-client privilege. Plaintiff contended that permitting defendants to engage in this type of conduct would set a precedent for other attorneys and adversely affect the practice of law. Plaintiff also argued the attorney-client privilege did not benefit the Slotkys because it exposed them to liability that otherwise could have been shared by defendants.
The court rejected this argument on the basis that the privilege refers to a client's right to refuse to disclose confidential communications, not the attorney's right. Also, although documents disclosed by the Slotkys in late and their depositions in early may have further solidified plaintiff's determination that he had a claim against defendants, he knew well before then that he had been wrongfully injured by his former business associates, which triggered the statute of limitations on his aiding and abetting claim against defendants.
This case is significant because the appellate court again held that for limitations purposes, knowledge that an injury has been wrongfully caused "does not mean knowledge of a specific defendant's negligent conduct or knowledge of the existence of a cause of action. Once a plaintiff files suit against someone, plaintiff has inquiry notice to determine whether actionable conduct had occurred by others.
Significance of Opinion This case is significant because the appellate court again held that for limitations purposes, knowledge that an injury has been wrongfully caused "does not mean knowledge of a specific defendant's negligent conduct or knowledge of the existence of a cause of action.
Send Print Report. Published In: Actual or Constructive Knowledge. Aiding and Abetting. Attorney Malpractice. Breach of Duty. Fiduciary Duty. Statute of Limitations. Business Organization. Civil Procedure. Business Torts. Related Case Law Carlson v.