Troutman Pepper Hit With $59 Million Malpractice Lawsuit in NY

Troutman Pepper Hamilton Sanders is facing a $59 million malpractice lawsuit by former client Judlau Contracting, a New York construction company.

The law firm and its partner Frank Cara allegedly committed “textbook malpractice” while representing Judlau in two cases in the commercial division of the New York State Supreme Court that commenced in 2016 and 2017, according to the lawsuit filed in New York state court on Wednesday.

Cara’s role as general counsel to a Judlau competitor while the lawsuits were ongoing was a conflict of interest, the complaint claims. Cara and Troutman didn’t immediately return requests for comment.

Cara in 2015 joined Pepper Hamilton, one of two firms that merged five years later to form Troutman Pepper. Judlau retained the firm in 2015 for representation in a variety of matters as well as the two cases filed in 2016 and 2017.

Cara had served as a partner in the New York construction practice of Connell Foley since 2013 and before that served as Judlau’s executive vice president and general counsel for four years, according to his LinkedIn profile.

Judlau alleges that Cara, while representing the company, began serving as outside general counsel to competitor Iovino Enterprises in 2018. Cara then became Iovino’s in-house executive vice president and general counsel from November of 2019 through July 2020—all while maintaining his position at Troutman, Judlau claims.

“Cara’s assumption of these dual roles constituted a clear violation of Cara’s professional obligations,” according to the complaint.

Troutman’s missteps, inattention and “failure to communicate timely and accurately” resulted in two judgments against the construction company totaling approximately $60 million, Judlau also alleges.

“Instead of benefiting from Defendants’ advertised abundance of construction law expertise and litigation acumen, Judlau received a trash basket overflowing with professional incompetence,” the complaint stated.

Judlau is represented by Rottenstreich Farley Bronstein Fisher Potter Hodas LLP and Barclay Damon LLP.

The case is Judlau Contracting Inc. v. Troutman Pepper Hamilton Sanders, Docket No. 654562/2024, NY Sup. Ct., Sept. 4, 2024.