The Illinois Supreme Court recently made a significant decision by refusing to hear an appeal from the international law firm Baker McKenzie. This means the firm must face a lawsuit in the U.S. over allegations of legal malpractice tied to its former office in Russia. The case was initiated by Lehram Capital Investments, a U.K.-based company that claims it received poor legal advice from Baker McKenzie while navigating a complex acquisition of a coal mine in Kemerovo, Russia, in 2013. Lehram alleges that the firm’s attorneys failed to file claims correctly in Russian courts and didn’t disclose conflicts of interest, resulting in significant issues for the company.
Baker McKenzie, which employs thousands of lawyers worldwide, has argued that the lawsuit should not be heard in the U.S. as its Russian branch operates independently from its U.S. office. Following the Illinois appellate court’s ruling, which allowed the case to proceed, Baker McKenzie expressed its intent to explore further legal options. Meanwhile, the case highlights the complexities international law firms face, particularly those structured as Swiss verein, where separate entities operate under a common name, complicating liability issues across jurisdictions.
If you have questions about legal malpractice against vereins, contact Kristi Browne at kbrowne@pattersonlawfirm.com.
