Reply #73: Morgan Lewis Sued Over Clients' Business With Cuba [View All]

[Judi Lynn]

Morgan Lewis Sued Over Clients' Business With Cuba
Jeff Blumenthal
The Legal Intelligencer
02-13-2004


Morgan Lewis & Bockius vowed to "vigorously" defend itself against two businessmen who sued the firm for legal malpractice and conflict of interest, calling the allegations that the firm gave erroneous legal advice about their company's trade with Cuba "grossly inaccurate" and "meritless."

The plaintiffs, brothers Stefan & Don Brodie, claim in the suit filed in Philadelphia Common Pleas Court late Wednesday afternoon that they were criminally prosecuted for following the firm's advice that their company, Bro-Tech Corp., was free to trade with Cuba despite the American embargo on such actions. It also alleged that Assistant U.S. Attorney Kristin Hayes, wife of Morgan Lewis managing partner of operations Thomas Sharbaugh, volunteered to participate in the prosecution despite an appearance of conflict of interest. Plaintiff attorneys are Clifford Haines of Haines & Associates and Marc Kasowitz and Aaron Marks of Kasowitz Benson Torres & Friedman. Morgan Lewis announced that Conrad O'Brien Gellman & Rohn would be representing the firm.

Morgan Lewis officials were particularly riled by accusations levied against Edward Dennis, who retired as a partner in the white-collar criminal defense practice group in 2002 after a distinguished career.

The suit claims that even after the U.S. Customs Service launched an investigation in 1997 into the company's trade with Cuba, Dennis reiterated earlier advice from other Morgan Lewis attorneys that the Foreign Sovereign Compulsion Doctrine -- which provides that conduct compelled by a foreign country is immune from liability in the U.S. in certain circumstances -- would be a viable defense to any charges that the company violated Cuban embargo violations and would apply to future transactions as well.
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http://www.law.com/jsp/article.jsp?id=1076428315830