USA Lending Group’s Malpractice Suit Revived by Texas High Court

May 22, 2023, 4:28 PM UTC

A mortgage lending company that alleged its former law firm neglected to request monetary damages in a previous case can pursue a malpractice claim, the Texas Supreme Court ruled.

USA Lending Group Inc. hired Winstead PC to sue its former employee for breach of fiduciary duty, the court said. The company alleged that Winstead attorney James Ruiz omitted a claim for lost income of over $1 million in a revised affidavit accompanying a motion for default judgment, , causing a federal court not to award monetary damages.

USA Lending presented enough evidence to support its legal malpractice claim to proceed, ...

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