Eagle Mountain City v. Parsons Kinghorn & Harris, P.C.

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Legal malpractice claims are presumed to be voluntarily assignable. Eagle Mountain City entered into a contractual arrangement with Cedar Valley Water Association to share in recovery from a legal malpractice action brought against Parsons Kinghorn & Harris, P.C. The City brought the legal malpractice action in its own name. At issue was whether the contractual arrangement transferred sufficient control over the malpractice claim from the City to Cedar Valley to constitute an assignment. The district court dismissed the case without prejudice on the ground that the assignment of legal malpractice claims violates public policy. The Supreme Court reversed, holding that, even assuming the City assigned its legal malpractice claim, this assignment does not violate public policy. View "Eagle Mountain City v. Parsons Kinghorn & Harris, P.C." on Justia Law