Professional liability defense is not limited to the legal “arena” or the “courts” of law. With the NBA and NHL playoffs in full swing, there is one team who is out of the NHL playoffs and into a court of law. The ownership of Atlanta Thrashers, Atlanta Spirit LLC, has filed a legal malpractice action against its former attorneys, King & Spalding LLP, alleging $200 million in damages. Plaintiffs, who also own the Atlanta Hawks basketball team, contend defendant, King & Spalding LLP, negotiated a “fatally flawed” contract which was subsequently declared unenforceable. Defendant allegedly negotiated a contract on behalf of plaintiffs which prevented eight of the owners from buying out another co-owner’s interest in the basketball and hockey franchises. As a result, plaintiffs were unable to sell the hockey franchise.
Plaintiffs also allege defendant also breached their fiduciary duties by representing plaintiffs in the buyout litigation, which arose out of the flawed contract. Plaintiffs contend defendant failed to advise them of the potential malpractice claim that arose out of the contract and continued to represent plaintiffs after realizing the potential conflict. The action is pending in the Fulton County Superior Court in Georgia. With a looming court battle, both sides would probably welcome an NBA championship. Let’s hope the Atlanta Hawks can help with that!� The complete complaint can be found at: http://www.bizjournals.com/atlanta/pdf/thrashers%20sue%20King%20Spalding.pdf