Hogan Lovells is being sued by two Montgomery County, Md. landowners who allege the law firm’s advice led to a $36 million jury verdict against them.
The malpractice suit, filed April 1 in D.C. Superior Court, stems from the work attorneys from the legacy firm Hogan & Hartson did for the Camalier and Davis families in a real estate deal.
The plaintiffs in the malpractice suit leased two adjacent properties to the Penrose Group, which intended to construct apartment buildings. According to the complaint, the Hogan attorneys who were retained in September 2006, including commercial litigation partner David Hensler, advised the landowners not to produce an estoppel certificate, a guarantee that developers were in compliance with the lease.
Without an estoppel certificate Penrose, the developer, was unable to get financing for the project. Penrose subsequently sued the landowners for loss of profit.