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Counsel Concerns

By ALM Staff | Law Journal Newsletters |
October 03, 2005

Contribution Claim Viable

A Manhattan Supreme Court decided that a law firm that unsuccessfully defended singer Michael Bolton, his music publisher and record company in a copyright infringement suit may proceed with a contribution claim against Bolton's personal law firm arising from a malpractice suit by Bolton against the litigators. Bolton v. Weil Gotshal, 602341/03. The Isley Brothers had sued Bolton, Warner Chappell Music and Sony Music Entertainment alleging infringement of the R&B group's song “Love Is a Wonderful Thing.” Bolton's agreements with Warner Chappell and Sony Music provided for the singer to indemnify the companies from copyright liability. The Isleys obtained a multi-million verdict.

Bolton then filed a $30 million suit against his litigators ' New York-based Weil, Gotshal & Manges ' alleging breach of fiduciary duty, in light of the indemnification clauses, for conflicts of interest in representing Bolton, Warner Chappell and Sony Music in the Isley Brothers case. (Bolton contends that Weil Gotshal was involved in a scheme by Warner Chappell's insurer, TIG Insurance, to proceed to a trial verdict in the Isley case to make Bolton responsible for verdict damages under the indemnification provisions.) In the malpractice case, Weil Gotshal filed a third-party-defendant claim against New York-based Bolton personal counsel Epstein, Levinsohn, Bodine, Hurwitz & Weinstein, which arranged for the litigation representation.

Denying Epstein Levinsohn's motion to dismiss the third-party claim, the Manhattan supreme court found that Weil Gotshal had stated a viable claim that if Bolton should prevail in his malpractice action, the firm may seek contribution from Epstein Levinsohn based on the latter firm's “causing or augmenting the injury for which contribution is sought” by allegedly not properly explaining the indemnity issue to Bolton.

Contribution Claim Viable

A Manhattan Supreme Court decided that a law firm that unsuccessfully defended singer Michael Bolton, his music publisher and record company in a copyright infringement suit may proceed with a contribution claim against Bolton's personal law firm arising from a malpractice suit by Bolton against the litigators. Bolton v. Weil Gotshal, 602341/03. The Isley Brothers had sued Bolton, Warner Chappell Music and Sony Music Entertainment alleging infringement of the R&B group's song “Love Is a Wonderful Thing.” Bolton's agreements with Warner Chappell and Sony Music provided for the singer to indemnify the companies from copyright liability. The Isleys obtained a multi-million verdict.

Bolton then filed a $30 million suit against his litigators ' New York-based Weil, Gotshal & Manges ' alleging breach of fiduciary duty, in light of the indemnification clauses, for conflicts of interest in representing Bolton, Warner Chappell and Sony Music in the Isley Brothers case. (Bolton contends that Weil Gotshal was involved in a scheme by Warner Chappell's insurer, TIG Insurance, to proceed to a trial verdict in the Isley case to make Bolton responsible for verdict damages under the indemnification provisions.) In the malpractice case, Weil Gotshal filed a third-party-defendant claim against New York-based Bolton personal counsel Epstein, Levinsohn, Bodine, Hurwitz & Weinstein, which arranged for the litigation representation.

Denying Epstein Levinsohn's motion to dismiss the third-party claim, the Manhattan supreme court found that Weil Gotshal had stated a viable claim that if Bolton should prevail in his malpractice action, the firm may seek contribution from Epstein Levinsohn based on the latter firm's “causing or augmenting the injury for which contribution is sought” by allegedly not properly explaining the indemnity issue to Bolton.

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