MegaFirm Malpractice Mess Migrates to New Manhattan Millieu
Nate Raymond
A malpractice lawsuit by a bankrupt outdoor furniture distributor against DLA Piper has been removed to federal court. Joseph DelGreco & Co. Inc. sued DLA on July 6 in Manhattan Supreme Court claiming the firm's negligence financially damaged the company and pushed it into bankruptcy. DelGreco on Friday removed the $17 million lawsuit to the Southern District of New York citing its on-going bankruptcy proceedings and the "early stages" of the litigation. DelGreco is also requesting that the suit be referred to the Southern District Bankruptcy Court. DelGreco, which filed for Chapter 11 in October, claims DLA did not advise it of what would happen as the result of a default on a loan. The company also claims DLA, worried about its fees, withdrew on the eve of a multimillion-dollar arbitration, leaving the company to defend itself without a lawyer. DLA Piper has called the suit "without merit." Joseph DelGreco & Company Inc. v. DLA Piper LLP, 10-cv-05619, is before Judge Louis L. Stanton.
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