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21 February 2020PatentsSarah Morgan

Ohio jury hits Dentons with ‘record’ $32m legal malpractice verdict

An Ohio jury has awarded $32.3 million in damages to laser technology company  RevoLaze against law firm Dentons in a medical malpractice suit.

Lawyers for RevoLaze said yesterday, February 20, that the verdict was the biggest legal malpractice judgment in Ohio history, although this is unconfirmed.

RevoLaze sued Dentons and the chair of its patent litigation practice after the firm had been disqualified from the dispute at the US International Trade Commission (ITC) by an administrative law judge (ALJ).

The disqualification order was later vacated by the ITC.

RevoLaze hired Dentons in August 2014 when it  accused 17 companies, including The Gap, Diesel, and Levi, of using its patented laser scribing technology without a licence in a complaint filed with the ITC.

The Gap filed a motion to disqualify Dentons, arguing that the law firm’s Canadian arm had previously acted for the company.

Dentons US denied that it had a conflict of interest, arguing that while Dentons US and Dentons Canada are both members of the Swiss verein Dentons Group, they are separate law firms. A verein-organised firm is a combination of law firms that share marketing and branding, but keep their profits and finances separate from one another.

In a legal malpractice suit filed subsequently against Dentons US, RevoLaze said: “As a result of defendants’ failures, RevoLaze was required to retain alternate counsel to replace defendants. Despite the fact that defendants had billed RevoLaze for over 81% of the agreed budget for all of the ITC litigation [and district court litigation] RevoLaze was required to duplicate many of these expenses with its alternate counsel.”

RevoLaze was represented in the malpractice suit by Patterson Law Firm.

Sarah Dunkley, senior associate at Patterson, added that the case is important because it shows that a “law firm cannot evade its duty of loyalty by organising itself as a Swiss verein”.

In a statement shared with WIPR, Dentons said: “We will appeal. The verdict was simply wrong. Just as our position was vindicated on appeal by the ITC, we will be vindicated on appeal in this matter. We acted properly, ethically, and consistent with our duties to our clients.”

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