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Law firm accused of malpractice for suing wrong defendant

by | May 28, 2020 | Legal Malpractice |

A lawsuit alleging unpaid commissions from a real estate deal has turned into a claim for legal malpractice. The claim alleges that the firm initially filed suit against the wrong parties. The suit alleges that this caused a delay which made it impossible to recover the unpaid commissions from the correct party.

Deadlines are crucial

The project’s developer was the target of the initial lawsuit. However, the lender was actually the proper target. The lender was the party who received and held the commissions at the center of the dispute.

Eventually, the plaintiffs hired new legal counsel. The lawsuit finally targeted the lender. Unfortunately for the plaintiffs, this happened four-and-a-half years after the lawsuit was initially filed. A jury found that the four-year statute of limitations applied. The deadline for filing the lawsuit had passed.

The obvious takeaway from this story is that attorneys need to ensure they are suing the correct parties. A more universal takeaway that everyone should be aware of is the importance of filing legal actions before the statute of limitations expire.

Statutes of limitations vary depending on the type of case. Errors and mistakes can result in costly delays. In some cases, they can even leave the wronged parties without recourse. When this happens, a malpractice lawsuit is practically an inevitability.

Attorneys can help protect themselves by quickly addressing any filing errors. Clients should be vigilant and ensure that their lawyers are keeping the wheels turning. If a missed deadline causes real harm to your case, you may be able to pursue compensation through a legal malpractice claim.