Chrysler Sues Lawyers for Misconduct

03/29/96

Chrysler Corporation announced that they have filed actions against lawyers in Seattle and St. Louis, alleging unethical and unlawful conduct. Both cases arise out of class action suits filed by the lawyers that were later dismissed. Chrysler has also asked the State Bar associations of Washington and Missouri to investigate the alleged ethical violations.

The Washington case alleges that two Seattle lawyers filed a class action suit against the company without having been retained by anyone to file the suit. The company's action asks the Seattle lawyers to pay for Chrysler's costs in defending the class action suit which was ultimately dismissed.

The Missouri case alleges that two St. Louis lawyers who had represented Chrysler in certain class action suits left the firm they had worked for and filed a similar class action against the company. Chrysler's action against the lawyers seeks damages for legal malpractice, breach of fiduciary duty, and other violations of Missouri law.

Lewis Goldfarb, Chrysler's Assistant General Counsel, said, "in recent years there has been an alarming surge in class actions brought solely for the benefit of lawyers. Chrysler will not hesitate to take action against lawyers who engage in unethical and illegal conduct in the course of filing such lawsuits."

Paul Dever -- The Auto Channel