Nettles v. Rumberger, Kirk & Caldwell, P.C., et al.

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Bert Nettles appealed summary judgment entered in favor of Rumberger, Kirk & Caldwell, P.C. ("Rumberger") and several attorneys with the firm. This case stemmed from the demise of the law firm of Haskell Slaughter Young & Rediker, LLC ("Haskell Slaughter"). Nettles and the individual defendants were all former members of Haskell Slaughter. In 2013, Haskell Slaughter was in financial distress, and members of the firm were in discussions as to what, if anything, could be done to save the firm. In December 2013, 10 lawyers, including the individual defendants, left Haskell Slaughter and joined Rumberger. Haskell Slaughter permanently closed in February 2014. In 2015, Bluebird Holdings, LLC ("Bluebird"), filed a complaint against Nettles and three other former members of Haskell Slaughter, seeking to collect on personal guarantee agreements executed by the former members. Nettles filed a third-party complaint in the Bluebird action against Rumberger and the individual defendants. Nettles sought damages from Rumberger and the individual defendants for alleged breach of fiduciary duty, fraud, conspiracy, and tortious interference with a contract. Nettles alleged that the individual defendants, in violation of fiduciary duties owed Nettles and Haskell Slaughter, conspired with each other and with Rumberger to orchestrate Rumberger's acquisition of two of Haskell Slaughter's most profitable practice groups. Nettles alleged that the loss of those practice groups "was the psychological and financial death blow to Haskell Slaughter" in that it thwarted plans for a potential firm-saving reorganization, caused the remaining members of the firm to leave, and resulted in the liquidation of Haskell Slaughter and ultimately the Bluebird action. The demise of Haskell Slaughter caused it to default on bank debt for which Nettles was a guarantor. Rumberger and the individual defendants filed a motion to dismiss Nettles's third-party complaint, arguing, among other things, that certain of Nettles's damages claims were not permissible under Rule 14, Ala. R. Civ. P. The trial court agreed and ruled that Nettles could recover only money that he may be required to pay as a result the personal guarantee agreement made the basis of the Bluebird action. As a result of that ruling, Nettles filed this suit, now before the Alabama Supreme Court. Finding no reversible error in the grant of summary judgment to the firm and individual defendants on all claims asserted, the Supreme Court affirmed the trial court's judgment. View "Nettles v. Rumberger, Kirk & Caldwell, P.C., et al." on Justia Law