In several cases totaling $40 million in claims, Mr. Kerrigan represented the partners of a series of real estate limited partnerships. The plaintiffs alleged that the partners breached their state law fiduciary duties to the investors by failing to disclose all material facts in connection with Rule 106-5 Section 12(2) and by failing to exercise their best business judgment in connection with the operation of the various partnerships. The plaintiffs asserted claims for mismanagement, negligence, negligent misrepresentation, breach of fiduciary duty, and in some cases, securities fraud and unfair trade practices. We handled these cases pursuant to insurance coverage provided by National Union Fire Insurance Company, which defended the partners subject to a reservation of rights. All but two of the cases were settled. In the remaining cases, DK&S obtained a jury verdict and summary judgment in favor of the defendants based on a limitations defense.
A&R Associates v. LaMarquis, Ltd., 86-3991, Waitz v Home Equity Group, 893 F.2d 343, Abbott v. Equity Group, 86-4186, E-CZ v. Equity Group, 86-4197 and Breaux v. Equity Group, 87-2524, United States District Court for the Eastern District of Louisiana, 1986 and 1987.