Lawfund Mgmt. Grp., LLC v. S&B Surg. Ctr. Creditor Trust

Good Law
United States Court of Appeals for the Ninth CircuitOctober 8, 202120-56171California595 words

Opinion

Opinion

facts and seeks the same recovery as LawFund’s breach of fiduciary duty and

conversion claims. See McBride v. Boughton, 20 Cal. Rptr. 3d 115, 127 (Ct. App.

2004) (“When a common count is used as an alternative way of seeking the same

recovery demanded in a specific cause of action, and is based on the same facts,

the common count . . . must stand or fall with” the underlying cause of action.).

4. The bankruptcy court did not abuse its discretion by denying LawFund

leave to amend its claims against Buchalter because amendment would be futile.

See In re Turner, 859 F.3d at 1151.

3 5. The bankruptcy court properly dismissed LawFund’s breach of contract

claim against the Trust regarding the Trust’s failure to cooperate in suing Buchalter

for malpractice. LawFund failed to allege sufficiently that the parties’ agreements

required that the Trust cooperate in prosecuting a malpractice claim against

Buchalter.

The bankruptcy court determined in a prior related action that the

malpractice claim was not assigned under the parties’ agreements because, among

other reasons, California law prohibits the assignment of legal malpractice claims.

LawFund’s contention that the Trust…

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