Legal Giant Baker & McKenzie Still Battling Legal Malpractice Case

By Thomas Greer | November 27, 2013

In 2010, one of the largest law firms on the planet, Baker & McKenzie, was hit with a $103 million malpractice verdict.  The case arose out of neighboring Mississippi and captured headlines news both for its astronomical monetary amount and its revelation that even the largest, most esteemed firms are not above wrongdoing.  The facts of the 2010 case are briefly summarized as follows:

  • S. Lavon Evans, Jr., brought the legal malpractice suit, seeking $150 million in both actual and punitive damages.
  • Evans had begun an oil drilling company in Mississippi in 1995.
  • In 1999, the company began drilling wells for Reed Cagle, a businessman whose multiple businesses were represented by Joel Held, an attorney at Baker & McKenzie.
  • Cagle introduced Held to Evans, who decided to retain him.
  • Cagle and Evans partnered to construct two drilling rigs, with Held still representing both men.
  • Cagle, without Evans knowledge, used one of the drilling rigs to secure a $7 million loan, while failing to pay invoices for the rigs construction and monies owed to Evans
  • Held and Cagle drafted legal documents which attempted to give Cagle full ownership of the rig, despite the fact Cagle failed to pay for any of the rig’s construction.  The defendants created subsidiaries of the jointly held company without Evans knowledge and used these subsidiaries to obtain loans which Cagle withdrew.
  • In 2007, Evans realized Cagle was insolvent and attempted to dissolve the business partnership.
  • Cagle and his attorney Held devised a litigation strategy intended to cripple Evans, accusing Evans of stealing the rigs from Cagle.
  • In his suit, Evans alleged that his attorney Held committed malpractice by working with his former business partner behind his back and treating his own company as a piggybank.
  • Baker & McKenzie claimed it did not in fact represent Evans, but documents produced proved otherwise.  There were documents, emails, and phone messages that showed a legal relationship existed, along with a check for legal services.
  • The jury found in the plaintiffs favor, awarding a whooping $103 million

Following the verdict, as can be expected, Baker & McKenzie appealed—and won, at least partially.  Recently, the Mississippi Supreme Court reversed the case on the issues of causation and damages.  However, all nine justices agreed that the plaintiffs proved liability against Held and Baker & McKenzie.  The justices held that a new trial is necessary as to damages.  The reason for the reversal: the court found that the jury was not properly instructed on the issues of proximate cause and damages.

While Baker & McKenzie has at least garnered itself another chance to perhaps win on the issue of causation or at least mitigate damages (given the lucrative businesses involved, any damage award will likely be substantial).  Baker & McKenzie may wish to settle to avoid another astronomical jury award.

The case of Baker & McKenzie illustrates that even prominent, world renowned law firms can commit malpractice.  If you believe you have been the victim of legal malpractice in Tennessee, it is important to consult with another attorney as soon as possible.  At Bailey & Greer, we have the resources and knowledge to handle even the largest legal malpractice case.  We understand how painful it is to have been taken advantage of by a firm you trusted.  The attorneys at Bailey & Greer, PLLC will fight for your recovery and strive to hold the attorney or attorneys responsible for your loss accountable.  Call us today at 901-680-9777 for a free case analysis.

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