Legal Malpractice Case

Case Name
Green Life, Inc. v. Arthur Jacobs, et al.

Court and Presiding Judge
United States District Court for the District of Maryland (Federal Court)
The Honorable Marvin J. Garbis

Facts and Damages
Bill Harrigan, the founder and owner of Green Life, Inc., had sold the business to one of his managers, William Turley, and taken back the financing to the tune of $500,000. After paying Mr. Harrigan for several months, Turley ran into financial difficulty and defaulted on the promissory note. Turley hired Arthur Jacobs, who was both an attorney and CPA to advise him regarding his options. Jacobs essentially opened a new corporation for Turley, rolled most of Green Life’s assets into the new corporation (including its most valuable asset, its customer list) and filed bankruptcy for both Green Life and Turley bankruptcy.

Mr. Campen was hired by Harrigan after a Baltimore firm had been working on the case and made no headway. Realizing Harrigan had obtained a security agreement from Turley and Green Life at the time of the sale, which allowed Harrigan to procure back all of Green Life’s stock upon Turley’s default, Mr. Campen filed suit in Frederick County Circuit Court and procured an Order, transferring all of Green Life’s stock back to Harrigan. Mr. Campen and Harrigan, on behalf of Green Life, then filed suit against Jacobs, alleging negligence on Jacobs’ part for failing to protect Green Life’s assets by allowing their transfer to the new corporation that he had organized. Turley also brought his own suit against Jacobs. Jacobs, represented by the Baltimore firm of Eccelston and Wolf, denied the allegations.

Case Outcome
With the exceedingly effective assistance of Magistrate Judge Susan K. Gauvey, the case was settled successfully for a significant sum. Terms of the settlement are confidential.

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