Ninth Circuit Asks Nevada Court to Weigh Legal Malpractice Issue

The US Court of Appeals for the Ninth Circuit asked Nevada’s highest state court Thursday to resolve an unanswered question about the state’s public policy against the direct assignment of a corporate entity’s legal malpractice claims.

The case before the appeals court involves a long-running legal battle over ownership stakes in a joint business venture called Fresh Mix that sells food and produce to Las Vegas casinos and hotels.

Fresh Mix’s minority owners claimed that the company’s majority owner, Get Fresh Sales Inc., colluded with the company’s outside counsel to undermine Fresh Mix’s interests. The owners eventually reached a settlement ...