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Bit Parts

By ALM Staff | Law Journal Newsletters |
October 30, 2006

Accounting-Malpractice Claim/Arbitration

The Court of Appeal of California, Second District, Division 5, decided that an arbitration provision in a retainer agreement for an accounting firm to represent Kathlynn Federici in a divorce from her husband Danny Federici, keyboardist for Bruce Springsteen's E Street Band, barred her malpractice suit against the firm. Federici v. Gursey Schneider & Co. LLP, B183945. The plaintiff had hired Gursey Schneider to determine the value of the couple's separate and community property. Kathlynn later concluded that the marital settlement was unfair to her and sued the accountants for professional negligence. But the court of appeal explained that 'an unambiguous provision in Gursey's retainer agreement required, as a prerequisite to any future malpractice action, that plaintiff raise existing professional negligence claims as an affirmative defense in any fee-related arbitration with Gursey ' so that any such damages would be offset against Gursey's fees ' and only if that remedy failed to compensate plaintiff for all of her negligence damages could she pursue further relief through a separate litigation.'

Contributory and Vicarious Copyright Infringement/Interlocutory Appeal

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