N.C. Judge Tosses Insolvent Company Owner’s Malpractice Action Against Law Firm

CHARLOTTE, N.C. — A North Carolina judge has dismissed a legal malpractice action in which the former owner of an insolvent company accused an attorney and his former firm of negligently representing him in a reinsurance-related action that resulted in an adverse $12.8 million judgment against the owner.

In a May 24 order, Judge Michael L. Robinson of the Mecklenburg County Superior Court found that defendants’ allegedly negligent representation of Peter Fleming would not have changed the outcome of the underlying veil-piercing action filed by General Fidelity Insurance Co. (GFIC).

GFIC entered into a reinsurance agreement with State National …