Lehram Capital Investments, Ltd. v. Baker & McKenzie International

2023 IL App (1st) 230095
CourtAppellate Court of Illinois
DecidedFebruary 14, 2024
Docket1-23-0095
StatusPublished

This text of 2023 IL App (1st) 230095 (Lehram Capital Investments, Ltd. v. Baker & McKenzie International) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehram Capital Investments, Ltd. v. Baker & McKenzie International, 2023 IL App (1st) 230095 (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 230095 Nos. 1-23-0095 and 1-23-0258 (cons.) Opinion filed February 14, 2024 Third Division ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ LEHRAM CAPITAL INVESTMENTS, LTD, and ) Appeal from the DANIEL RODRIGUEZ, ) Circuit Court of ) Cook County. Plaintiffs-Appellees, ) ) v. ) No. 22 L 6704 ) BAKER & MCKENZIE INTERNATIONAL; BAKER ) MCKENZIE; BAKER & MCKENZIE LLP; and BAKER ) & MCKENZIE, ) ) Defendants ) Honorable ) James E. Snyder, (Baker & McKenzie, LLP, Defendant-Appellant). ) Judge, presiding.

JUSTICE LAMPKIN delivered the judgment of the court, with opinion. Justice R. Van Tine concurred in the judgment and opinion. Justice D.B. Walker dissented, with opinion.

OPINION

¶1 Plaintiffs, Lehram Capital Investments, Ltd. (Lehram) and Daniel Rodriguez, sued

defendants, Baker & McKenzie International, Baker McKenzie, Baker & McKenzie, and Baker &

McKenzie, LLP (Baker LLP), for legal malpractice. Although plaintiffs sued four defendants, only

Baker LLP was served and answered the complaint. Nos. 1-23-0095 and 1-23-0258 (cons.)

¶2 Baker LLP appeals the denial of its forum non conveniens motion to dismiss. We allowed

Baker LLP’s petition for leave to appeal under Illinois Supreme Court Rule 306(a)(2) (eff. Oct. 1,

2020), which provides for interlocutory appeals by permission. On appeal, Baker LLP argues that

the trial court abused its discretion by concluding that the balance of private and public interest

factors did not strongly favor transfer to London.

¶3 For the reasons that follow, we affirm the judgment of the circuit court.

¶4 I. BACKGROUND

¶5 Plaintiff Lehram is a London business and plaintiff Rodriguez is a Spanish citizen who

lives in Europe. Plaintiffs alleged that defendants were an international law firm with its principal

place of business in Chicago. Plaintiffs also alleged that defendants operated as one unified body

of thousands of lawyers in dozens of domestic and international offices, holding themselves out to

the public as “Baker & McKenzie,” and registered in each jurisdiction according to that

jurisdiction’s specific requirements. Plaintiffs had hired defendants to perform legal work in many

countries, including the United States, for plaintiffs’ various international legal needs, based on

defendants’ marketing and representations that it was a one-stop, global firm suited in particular

to Rodriguez’s international businesses.

¶6 Plaintiffs alleged that they purchased a coal mine in Kemerovo, Russia in 2013. Shortly

after plaintiffs’ acquisition of the mine, a director of Lehram, Igor Rudyk, was arrested by Russian

immigration authorities when he refused the Kemerovo deputy governor’s request to turnover

plaintiffs’ ownership of the mine. Rudyk was detained, interrogated, and put in a Russian prison.

After several days, he was taken in handcuffs to again meet with the deputy governor and was

-2- Nos. 1-23-0095 and 1-23-0258 (cons.)

presented with documents that purported to transfer plaintiffs’ ownership interests to an entity

controlled by the Shchukin family, who were an organized crime group known to have strong ties

to the deputy governor and governor of Kemerovo. Plaintiffs alleged that Rudyk was coerced into

signing the documents.

¶7 According to his affidavit, Rodriguez in 2014 raised the issue of the unlawful seizure of

Lehram’s shares of the mine with a Swiss partner of defendants’ Geneva office, who referred

Rodriguez to defendants’ London office. There, London partners Andrew Keltie and Charles

Thompson and associate Ekaterina Finkel conducted an initial assessment of the legal options to

recover the assets. These London attorneys recommended that plaintiffs file a complaint in Russia

to recover the assets and introduced plaintiffs to their partners in Moscow, Baker & McKenzie

CIS-Limited (Baker CIS). Plaintiffs alleged that they retained Baker CIS in January 2016 to help

them recover ownership of the mine.

¶8 In November 2018, plaintiffs sued defendants in Cook County for legal malpractice,

alleging that they (1) filed plaintiffs’ underlying claim in the wrong court in Russia, causing the

claim to be dismissed on statute of limitations grounds, and (2) introduced Rodriguez to a Russian

criminal group, putting the lives of plaintiffs and their families at risk. Specifically, plaintiffs

alleged that defendants agreed to represent them in seeking to recover ownership of the mine but

failed to disclose several conflicts of interest, such as defendants’ concurrent representation of

certain Russian government-owned interests and other Russian Federation businesses. When

defendants filed an action challenging the notary’s signature on the documents Rudyk allegedly

was forced to sign, defendants filed the action in the civil court, which had a 10-day statute of

-3- Nos. 1-23-0095 and 1-23-0258 (cons.)

limitations, instead of filing it in the Russian arbitration court, which had a three-year statute of

limitations. Ultimately, plaintiffs’ claim to recover ownership of the mine was dismissed as

untimely.

¶9 Furthermore, plaintiffs alleged that defendants also proposed that plaintiffs meet with

another client of defendants, Gavril Yushvaev, who also had his mine ownership forcibly

transferred to the Shchukin family but successfully negotiated a resolution that permitted him to

regain control of his mine. Defendants introduced plaintiffs to Yushvaev’s agent, Anton

Tsygankov, who would attempt to negotiate for plaintiffs with Dmitry Anatolievich Tsvetkov, a

Shchukin family operative. Tsygankov advised plaintiffs to file a petition to initiate a criminal

investigation against the Shchukin family, pay him $300,000, and assign 50% of plaintiffs’

ownership in the mine to Yushvaev. Despite encouragement from a partner of defendants to accept

the terms, Rodriguez rejected the scheme. Afterwards, members of Lehram and their families

began receiving death threats and threats of fabricated criminal prosecutions. Plaintiffs claimed

that Tsvetkov attempted to intimidate Lehram representatives so they would cease attempts to

recover the mine. According to plaintiffs, Tsvetkov disclosed private information about Lehram

and Rodriguez that was known only to defendants. When plaintiffs reported the threats to the law

firm, it presented plaintiffs with a waiver that sought a universal release of every partner of the

global Baker McKenzie entity. Plaintiffs refused to sign the waiver. Plaintiffs claimed that these

events and others constituted a breach of the standard of care and duty that attorneys owe their

clients and proximately caused plaintiffs to incur damages greater than $200 million.

-4- Nos. 1-23-0095 and 1-23-0258 (cons.)

¶ 10 Among defendant Baker LLP’s defenses, it disputes plaintiffs’ description of named

defendants as having legal relationships or bases of liability for each other. Baker LLP asserts that

plaintiffs engaged Baker CIS and not Baker LLP. Baker LLP contends that no attorneys of Baker

LLP located in Chicago or anywhere else in the United States participated in the Russian litigation

regarding the mine.

¶ 11 Initially, Baker LLP argued that the case should be transferred to Moscow, and the parties

engaged in forum non conveniens discovery. After the forum non conveniens motion was fully

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