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Asker
Posted almost 2 years ago.

The Partnership hired the attorney who helped the Partnership sub-divide the property, sell the property, and obtain a $375k loan from the bank, all for the Partnership.

Not the 4 Partners who signed the documents.

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Asker
Posted almost 2 years ago.

My Partnership hired the attorney who never saw the Partnerhip Agreement, he "assumed" that the Partners who signed the documents were the only Partners in the Partnership, as did the Senior Loan Officer at the bank.

The bank did not have an attorney.

The bank loaned the Partnership $1,000,000 with signatures of 3 & 4 partners, but never with my signature, and ever asking to look at the Partnership

Michael T Millar
Michael T Millar, Business Attorney - Toms River, NJ
Posted almost 2 years ago.

The bank likely had no duty to individual partners. Indeed, one could argue that the bank was defrauded because the partners who did sign the loan papers did not disclose the existence of other partners.

Whether or not the attorney owed each individual partner a duty of care will be a matter for a legal malpractice expert if you choose to pursue that claim.

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Asker
Posted almost 2 years ago.

I've already made the bank and the attorney's aware that they were "misled" by my Partners and that they might wish to pursue a claim against my Partners who purposely "misled" them.

I think it will have more to do with the Judge who hears the case. What are the chances that he might agree that the bank and the attorney's failed in their duty to protect me as a Partner?

The bank loaned the Partnership money that found it' way into my Partner's pockets and 25% of the Partnership funds used to repay the loan, with interest, came from me.

The attorney's fee was paid with 25% of my money and he didn't protect my rights because he "believed" my Partners?

“Individual and corporate consumers of legal services are increasingly recognizing that, just like when they purchase any other product or service, they are entitled to competent and effective counsel when they hire a lawyer."

Michael T Millar
Michael T Millar, Business Attorney - Toms River, NJ
Posted almost 2 years ago.

I do a lot of consumer protection work. Consumer protection laws do not apply to professional services, including legal services.

There is no clear cut answer as to the liability of the attorney. It will depend on the facts and whether an expert is willing to opine that the attorney owed you a duty of care, which he failed to do.

Clearly, you have a cause of action against your partners.

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Asker
Posted almost 2 years ago.

Thanks for your input, have a great New Year!