Lawyer's $16 million typo

It is not an enviable position – Stroock & Stroock & Lavan is the law firm at the centre of a dispute between the buyers and developers of a 41-story condo project in New York. The buyers, who have about $16 million in a Stroock-controlled escrow account, want that money returned. They claim that a one-digit typing error in the offering documents prepared by a lawyer at Stroock entitles them to avoid their contracts and get their money back. The New York state Attorney General's office agrees, and in April the developers – Carlyle/Extell – were ordered to return the money. Extell has responded by suing the Attorney General, saying that the order to return the money should not have been made because Stroock’s error is meaningless. If Extell is unsuccessful in its action against the Attorney General, is has been suggested that the company might turn around and sue Stroock for malpractice. That could end up being a very expensive typo.

Lawyer's $16 million typo amlawdaily.typepad.com Wed, May 12, 2010