Malpractice – Breach of Ficuicary Duties

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WI Court of Appeals – District III

Case Name: Tracy Barnett and Mogul Enterprises, LLC v. Herrling Clark Law Firm, et al.

Case No.: 2015AP2095

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Malpractice – Breach of Ficuicary Duties

Tracy Barnett and Mogul Enterprises, LLC (collectively, Barnett) sued Mark McGinnis and his former law firm, Herrling Clark, for malpractice, breach of fiduciary duties, and breach of contract. The claims involved McGinnis’s assistance in forming a company to purchase real property located in Outagamie County, McGinnis’s participation in that company, and his subsequent acquisition of the company following his election to the Outagamie County Circuit Court. All claims against McGinnis and Herrling Clark were ultimately dismissed, the majority of which after a jury found McGinnis was not negligent in the provision of legal services and did not breach his contractual or fiduciary duties to Barnett.

Barnett raises numerous issues on appeal, and in each case we reject her position. We first conclude the circuit court properly dismissed upon summary judgment Barnett’s claim that McGinnis was liable for failing to inform her of actions taken by one of her own companies. Second, we decline to address whether the court properly granted McGinnis’s and Herrling Clark’s motions for a directed verdict regarding the scope of damages and Herrling Clark’s vicarious liability. Those matters are moot because the jury ultimately found that McGinnis had no liability to Barnett. Finally, we agree with the circuit court that Barnett’s objections to McGinnis’s and Herrling Clark’s bills of costs were untimely filed. Consequently, we affirm the judgment and order.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.