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Counsel Concerns

By ALM Staff | Law Journal Newsletters |
August 02, 2004

A law firm represents a film production company. But as organizing both the company and a film project proceed, the company fails to raise sufficient funds to complete the project. Later, the director, a costumer, a construction coordinator and a production designer hired to work on the movie file suit for payment of services rendered and goods supplies. The suit alleges fraud and conspiracy. The law firm and its principals are named as defendants in the action.

Is the law firm liable in the case? This was an action that involved the formation of My Left Hook LLC (MLH) and its attempted production of a film titled “Out on My Feet.” Attorneys Steven Lowy and Andrew Zucker and their California firm Lowy & Zucker were hired by the production company as counsel. The complaint alleged that the lawyers knew that the film project lacked proper financing but joined the other defendants in misrepresenting the project's financial stability.

The trial court dismissed the suit in favor of all of the defendants. The Court of Appeal of California, Second Appellate District, Division Four, largely affirmed in an unpublished opinion. Parmet v. Lapin, B164170. The court noted that the law firm defendants had made no direct misrepresentations regarding financing to the costumer and construction coordinator.

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