Lemos v. Sessa
A client sued her divorce lawyers for negligence and breach of fiduciary duty after the firm wired settlement proceeds held in trust to a fraudulent account following an email hack. The Third DCA held the retainer agreement's broad arbitration clause unambiguously covered the client's tort claims because the duty to safeguard the funds arose from the unique attorney-client contractual relationship, but affirmed that the clause's provisions requiring the client to advance all arbitration costs and to pay the firm's fees regardless of outcome violate public policy — and severed those provisions rather than voiding the arbitration clause.
Key facts
- Client retained a law firm to handle a divorce matter; the firm's email was hacked and the firm wired settlement proceeds held in trust to a fraudulent account, resulting in loss of the funds.
- Client sued the firm for negligence and breach of fiduciary duty; the firm moved to compel arbitration under a broad arbitration clause in the retainer agreement.
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Why it matters
This is a useful opinion for both sides of attorney-client arbitration disputes: it confirms that broad retainer arbitration clauses reach generalized tort claims against a law firm where the duty flows from the… — full analysis with a trial
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