Legal malpractice claims predicated on professional negligence may survive assignment when those sounding in fraud do not.
Where state law prohibits assignment of fraud claims, close review of counsel’s failure to report wrongdoing to its corporate client saved the assigned malpractice claims in Lucky Management, LLC v. Miller & Martin. Careful examination revealed the allegations did not “mention, much less specifically allege” fraud, and thus, state law permitted assignment. As Lucky illustrates, knowing the law on claim assignment is key for law firms litigating these third-party claims.
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