Article: California Supreme Court Takes Up Statute of Limitations for Legal Malpractice Claims Against Former Law Firms.(Beal Bank S.S.B. sued Arter and Hadden L.L.P. )

Beal Bank, SSB v. Arter & Hadden, LLP, et al., 135 Cal. App. 4th 643 (2d Dist. 2006)

In a development that is being watched closely by law firms and insurers, on April 19, 2006, the California Supreme Court granted review of a second appellate district decision which held that the limitations period for a legal malpractice claim is tolled as to a law firm while one of the firm's former attorneys continues to represent that firm's former client in the same matter at a new law firm. In today's legal environment, with lawyers commonly moving laterally to different law firms, the decision has been viewed as a negative development for law firms and their insurers.

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