Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Counsel Concerns

By ALM Staff | Law Journal Newsletters |
February 27, 2007

Malpractice Claim/Mandatory Abstention. The U.S. District Court for the Northern District of New York found it had subject-matter jurisdiction over a legal-malpractice suit by the purveyor of the Aimster file-sharing software. But the court dismissed the malpractice action, citing mandatory abstention. Deep v. Boies, 1:05-CV-1187 (FJS/RFT).

Aimster-owner John Deep had filed for bankruptcy after he was sued for copyright-infringement by music-industry companies. Deep later sued his original infringement-defense counsel ' David Boies and the firms Boies, Schiller & Flexner LLP and Straus & Boies LL P' alleging sham transactions intended to misappropriate Deeps' assets and billings for legal services never rendered. The causes of action included malpractice, breach of fiduciary duty, conspiracy, fraud, unjust enrichment and conversion.

The district court did find 'it is conceivable that, if Plaintiff [Deep] prevails in this action, [his] bankruptcy estate would be augmented, thereby affecting the rights of creditors.' But the district court found that all the mandatory-abstention criteria of 28 U.S.C. Sec. 1334(c)(2) existed in the malpractice action. These included: that all of Deep's malpractice allegations were based on state-law claims; that the claims related to, but weren't core to, Deep's bankruptcy proceeding; that Deep had also filed a malpractice suit against Boies in state court which was likely to be timely adjudicated.

Malpractice Claim/Mandatory Abstention. The U.S. District Court for the Northern District of New York found it had subject-matter jurisdiction over a legal-malpractice suit by the purveyor of the Aimster file-sharing software. But the court dismissed the malpractice action, citing mandatory abstention. Deep v. Boies, 1:05-CV-1187 (FJS/RFT).

Aimster-owner John Deep had filed for bankruptcy after he was sued for copyright-infringement by music-industry companies. Deep later sued his original infringement-defense counsel ' David Boies and the firms Boies, Schiller & Flexner LLP and Straus & Boies LL P' alleging sham transactions intended to misappropriate Deeps' assets and billings for legal services never rendered. The causes of action included malpractice, breach of fiduciary duty, conspiracy, fraud, unjust enrichment and conversion.

The district court did find 'it is conceivable that, if Plaintiff [Deep] prevails in this action, [his] bankruptcy estate would be augmented, thereby affecting the rights of creditors.' But the district court found that all the mandatory-abstention criteria of 28 U.S.C. Sec. 1334(c)(2) existed in the malpractice action. These included: that all of Deep's malpractice allegations were based on state-law claims; that the claims related to, but weren't core to, Deep's bankruptcy proceeding; that Deep had also filed a malpractice suit against Boies in state court which was likely to be timely adjudicated.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers Image

In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.

Fresh Filings Image

Notable recent court filings in entertainment law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.