A company director found in violation of securities laws for using material, non-public
information to trade company shares for personal gain was found to owe repayment of
more than $800,000 in legal fees advanced pursuant to an indemnification agreement
because of a finding against the director in an SEC civil enforcement action.
Continuing Representation Doctrine Does Not Defeat Statute of
Limitations Defense
In a legal malpractice case arising out of representation of a plaintiff in divorce proceedings,
the Appeals Court of Massachusetts found that the plaintiff could not avoid
the statute of limitations for legal malpractice due to the continuing representation
doctrine because the plaintiff had actual knowledge that he suffered appreciable harm
as a result of the lawyer’s conduct.
Massachusetts Supreme Judicial Court Rejects “Actual Malice” Test for Assessing
First Amendment Protection Afforded Lawyers’ Courtroom Statements
The Supreme Judicial Court of Massachusetts (“SJC”) recently affirmed a judgment disbarring a Massachusetts
attorney in a significant decision rejecting numerous challenges to the disbarment, including an argument that
statements critical of the court were protected by the First Amendment to the U.S. Constitution. See In the Matter
of Matthew Cobb, 445 Mass. 452 (Dec. 8, 2005) (Spina, J.).
Constructive Trust Imposed on Real
Estate Purchased by Attorney
Acting in Breach of Fiduciary Duty
As a result of what the court described as an attorney’s
wrongful actions in breach of his fiduciary duties
toward his clients, the Massachusetts Appeals
Court in Duggan v. Gonsalves, 65 Mass.App.Ct. 250
(2005), vacated a Housing Court’s order for eviction
and ordered further proceeding for purposes of formulating
a constructive trust in favor of the clients
who were occupying the home after it had been sold
to the attorney.
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