A Shareholder Lacks Standing To Sue For Malpractice to A Corporation

Singh v. Duane Morris, LLP, 338 SW 3d 176 – Tex: Court of Appeals 2011 – Google Scholar: The Texas Court of Appeals held that the Plaintiff Robin Singh lacked standing to sue Duane Morris for legal malpractice because he was a shareholder of the corporate client. The Court framed the issue as follows: It is undisputed that all of appellant's alleged damages in this malpractice suit were incurred by Singh Corporation after January 1, 2003. In his first issue, appellant contends this undisputed fact does not impact the viability of his malpractice claim against appellees. In support of this contention, appellant asserts that since Singh Corporation is a Subchapter S corporation and he is the sole shareholder, this court can ignore the existence of the corporation, a separate legal entity, and determine that he was "harmed directly by the actions of [appellees] and he has standing to recover damages." We disagree." The court concluded that the corporation was the client of Duane Morris – not Mr. Singh. Therefore the corporation should have been the plaintiff in the malpractice lawsuit. Edward X. Clinton, Jr. 'via Blog this'

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