Shaoxing City v. Keehn & Assoc.Annotate this Case
Aeolus and Debtors owed plaintiffs over five million dollars pursuant to an arbitrator's ruling. Before plaintiffs obtained a judgment confirming the arbitration award, Aeolus entered into a security agreement with Zhejiang and Zhejiang filed a blanket lien attaching to all of Aeolus's assets. After plaintiffs obtained the judgment, Debtors filed for bankruptcy. Plaintiffs hired Keehn as counsel in order to obtain discovery and challenge Zhejiang's lien as a fraudulent transfer. Plaintiffs subsequently substituted Landsberg for Keehn as bankruptcy counsel. Plaintiffs discovered that Keehn missed the deadline to investigate and attack the lien. Plaintiffs ultimately accepted an amount for $1.6 million less than the arbitration award. Plaintiffs then filed suit against Keehn and Landsberg for malpractice. The trial court granted summary judgment for each defendant. The court concluded that the trial court correctly decided that plaintiffs' malpractice claim was not tolled until the completion of the mediation and that the one-year statute of limitations had expired by the time plaintiffs filed their suit. Accordingly, the court affirmed the judgment.