Who may sue the lawyer? Is it the corporation / LLC / etc. or the individual? Here, in this Schulte Roth case [McCagg v. Schulte Roth] from Supreme Court, New York County, partners who are suing each other find that neither may individually sue the attorneys involved for legal malpractice.
The back story is that A was a former jet leasing company president who sold his prior company and signed a non-compete. He teamed up with B, a newcomer to form a new jet leasing company, and they used A’s longtime attorneys, Schulte Roth. Then, horrors!, everyone finds out that A had signed a non-compete, and he withdraws, dooming the company. B sues the attorneys and finds out that he has no attorney client relationship.
The case continues in a non-legal malpractice setting: aiding and abetting B while knowing that he had previously signed a non-compete. Read the entire case for details.