A successor corporation brought action against counsel for predecessor
corporation alleging they committed legal malpractice, breached their fiduciary
duties, and committed trade secret violations by providing a former employee with
confidential information about predecessor corporation's application for a patent.
Counsel moved to dismiss.
The District Court, William T. Hart, J., held that:
(1) successor corporation established standing, at the pleading stage, to assert
claims of legal malpractice and breach of fiduciary duty against counsel;
(2) successor corporation's allegations regarding the Illinois Trade Secrets Act
(ITSA) were sufficient to survive motion to dismiss; and
(3) statute prohibiting punitive damages on legal malpractice claims did not
apply to ITSA claim.
Motion granted in part and denied in part.
United States District Court,
N.D. Illinois,
Eastern Division.
PARUS HOLDINGS, INC., Plaintiff,
v.
BANNER & WITCOFF, LTD., Charles Call, and Eugene Nelson, Defendants.
No. 08 C 1535.
Oct. 9, 2008.

