Prout v. Anne C. Vladeck & Vladeck, Raskin & Clark, P.C.

334 F. Supp. 3d 599
CourtDistrict Court, S.D. Illinois
DecidedSeptember 25, 2018
Docket18 Civ. 260 (JSR)
StatusPublished
Cited by1 cases

This text of 334 F. Supp. 3d 599 (Prout v. Anne C. Vladeck & Vladeck, Raskin & Clark, P.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prout v. Anne C. Vladeck & Vladeck, Raskin & Clark, P.C., 334 F. Supp. 3d 599 (S.D. Ill. 2018).

Opinion

JED S. RAKOFF, United States District Judge

Before the Court are the motions of Steven J. Kelly, Esq. and Sanford Heisler Sharp, LLP to dismiss the Third-Party Complaint of Anne C. Vladeck and Vladeck, Raskin & Clark, P.C. (together, "VRC"). ECF Nos. 70, 74. Previously, plaintiff Alexander Prout brought an action against VRC for legal malpractice, in which Prout alleged that VRC negligently let the statutes of limitations lapse on Prout's claims against his former employer, Invesco Ltd., for non-willful violation of the Family and Medical Leave Act ("FMLA") and for retaliation under the Sarbanes-Oxley Act ("SOX"). ECF No. 32. By Order and Opinion dated June 10 ("June 10 Order"), ECF No. 44, this Court denied VRC's motion to dismiss Prout's malpractice claim, and by Memorandum Order dated July 29 ("July 29 Order"), ECF No. 67, this Court denied VRC's related motion for reconsideration.

VRC now brings contribution claims against Kelly and Sanford Heisler. ECF No. 48. VRC alleges that Kelly acted as concurrent counsel to VRC with respect to Prout's non-willful FMLA claim, and that to the extent VRC was negligent in allowing the statute of limitations on this claim to lapse, Kelly was negligent as well. VRC alleges that Sanford Heisler acted as subsequent counsel with respect to Prout's still-viable claims for willful violation of the FMLA and retaliation under the Dodd-Frank Act, and that to the extent VRC was negligent in letting the statutes of limitations lapse on Prout's non-willful FMLA and SOX claims, Sanford Heisler was negligent in settling Prout's willful FMLA and Dodd-Frank claims, rather than litigating them.

Sanford Heisler and Kelly both move to dismiss the Third-Party Complaint for failure to state a claim. See Fed. R. Civ. P. 12(b)(6). Kelly also moves to dismiss the Third-Party Complaint for lack of personal jurisdiction. See id. 12(b)(2). For the reasons stated below, Kelly and Sanford Heisler's motions to dismiss are granted.

Background

Familiarity with all prior proceedings is here assumed. The pertinent factual allegations, drawn from the Third-Party Complaint and viewed in the light most favorable to VRC, are as follows:

In May 2014, Prout contacted VRC seeking legal representation to resolve a dispute with his then-employer, Invesco. Third-Party Complaint ("Third-Party Comp.") ¶¶ 23-24, ECF No. 48. Prout and VRC entered into an attorney-client relationship, id. ¶¶ 25-26, and between May and November 2014, Prout sought to leave *604Invesco and sought a severance package from Invesco, id. ¶ 27. On November 4, 2014, Invesco terminated Prout's employment. Id. ¶ 29.

In the weeks following Prout's termination, VRC communicated with Prout and Invesco about two options that Invesco presented to Prout: voluntary resignation or termination for cause. Id. ¶ 31. VRC advised Prout regarding potential claims he had against Invesco for violations of the FMLA, SOX, and Dodd-Frank. Id. ¶ 34. VRC notified Prout that if he was going to pursue a whistleblower claim under SOX, he needed to file a complaint with the Department of Labor within 180 days of his termination. Id. ¶ 35. Prout nevertheless advised VRC that he did not want to pursue a SOX claim at that time. Id. ¶ 36. VRC was also prepared to proceed with an action against Invesco for alleged violations of the FMLA, id. ¶ 48, but Prout repeatedly delayed in authorizing VRC to bring the action, because Prout was focusing on civil and criminal proceedings arising out of his daughter's being the victim of a sexual assault at the St. Paul's School in New Hampshire, see id. ¶¶ 49-55.

In October 2015, Prout advised VRC that he had retained counsel in his daughter's civil case against St Paul's,1 id. ¶ 61, and he requested that VRC "coordinate" with his other attorneys, including Kelly, id. ¶ 62. VRC alleges that it entered into a "joint representation agreement" with Kelly during a March 2016 conference call, and that VRC and Kelly discussed Prout's pursuit of his claims against Invesco. Id. ¶¶ 68-76. The parties also discussed the relationship between Prout's Invesco claims and his daughter's case, as VRC was concerned that the job-related damages Prout sought in his daughter's case might overlap with those he would seek from Invesco. Id. ¶¶ 77-78. In the following months, VRC, Prout, and Kelly had multiple calls in which they discussed Prout's settlement attempts with Invesco, and in which, it is alleged, "Kelly provided legal services and/or legal advice to Prout concerning his anticipated claims against Invesco." Id. ¶ 83.

On October 24, 2016, Prout advised VRC that Morgan Stanley (Prout's then employer) was investigating whether Prout had taken proprietary documents and information from Invesco. Id. ¶ 91. A week later, Prout had a call with VRC and Kelly, during which VRC advised that if Prout brought an action against Invesco at that time, Invesco might assert counterclaims based on the behavior being investigated. Id. ¶ 103. VRC also advised that Morgan Stanley might learn Prout had been dishonest with them during their investigation and might terminate Prout for cause. Id. ¶ 104. Prout decided as a result of these concerns that he should defer commencement of his action against Invesco, even though it would mean letting the statute of limitations lapse on his non-willful FMLA claim. id. ¶¶ 105-06. Kelly stated that he was "okay with the decision." Id. ¶ 106.

Later, in May 2017, VRC held a conference call with Prout and Kelly during which the parties discussed obstacles and timing relating to Prout's remaining claims against Invesco for willful violation of the FMLA and retaliation under Dodd-Frank. Id. ¶¶ 113-15. Kelly subsequently contacted Sanford Heisler to see whether the firm would represent Prout in his claims against Invesco, and Sanford Heisler agreed. Id. ¶¶ 122-23. Prout subsequently ended VRC's representation, id. ¶ 125, and he engaged Sanford Heisler, id. ¶ 127. Sanford Heisler then contacted Invesco on Prout's behalf and settled Prout's willful *605FMLA and Dodd-Frank claims for $1.75M. Id. ¶¶ 129-37.

Following his settlement with Invesco, Prout - through Sanford Heisler - accused VRC for the first time of mishandling his claims against Invesco. Id. ¶¶ 155-58. Sanford Heisler set forth the basis of Prout's malpractice claim and told VRC that it should settle because VRC's insurance carrier would cover the costs of doing so. Id. ¶¶ 157, 159. Sanford Heisler also threatened to sue VRC in order to tarnish VRC's reputation within the legal community. Id. ¶ 160. In setting forth the basis of Prout's malpractice claim, Sanford Heisler relied on Kelly as an independent witness to VRC's conduct, even though Kelly was in negotiations to join Sanford Heisler, id. ¶¶ 162-63, and ultimately did join Sanford Heisler, id. ¶ 164.

In its Third-Party Complaint, VRC now seeks contribution from Kelly and Sanford Heisler. Id. ¶¶ 168-84, 185-208.

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Bluebook (online)
334 F. Supp. 3d 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prout-v-anne-c-vladeck-vladeck-raskin-clark-pc-ilsd-2018.