Williams & Connolly's Robert Cary delivers the closing argument on behalf of Simpson Thacher & Bartlett in a legal malpractice claim against the law firm. A Florida jury cleared the firm at trial over a $100 million-plus claim that it was responsible for an insurance services company's failure.
Jurors earlier this month cleared law firm Simpson Thacher & Bartlett at trial over a $100 million-plus claim that it committed legal malpractice that led to the failure of an insurance services firm. Mariano v. Simpson Thacher & Bartlett, et al. CACE17021733.
The Florida 17th Circuit Court jury deliberated less than half a day before concluding Simpson Thacher’s representation of Patriot National's owner, Steven Mariano, was not responsible for the company’s failure in 2017.
Mariano claims Simpson Thacher represented him in organizing the company’s stock offerings, including a Private Investment in Public Equity, or PIPE offering, but that the company failed to adequately warn him of risks and it failed to protect against aggressive stock short-selling that Mariano says ultimately killed Patriot National.
The 16-day trial focused largely on details surrounding Simpson Thacher’s offering-related documents activities and what Mariano knew about them.
During his closing argument, Mariano’s attorney, Burns Charest’s Warren Burns, walked jurors through evidence he said showed that Simpson Thacher failed to establish proper protections to prevent the rampant short-selling that tanked the stock.
“[Mariano and others] were worried about short-selling at the time. They were worried about the effect on the company, but… Mr. Mariano turned to who he thought was a trusted counselor to guide them through that process,” Burns said. “We are here because Simpson Thacher failed in that process.”
However, Simpson Thacher argues it warned Mariano about the prospects of short-selling on the PIPE, but Mariano wanted to press forward, despite those dangers.
During his closing argument, Simpson Thacher’s attorney, Williams & Connolly’s Robert Cary, reviewed evidence he said showed Mariano elected to go forward with the offering, despite knowing the risk involved, because of financial issues he was experiencing. And Cary argued that Patriot failed, not because of short-selling of the company, but because of the 2017 financial collapse and dissolution of the company’s primary client, Guarantee Insurance, a workers' compensation insurance company also headed by Mariano.
“Simpson Thacher did its job,” Cary said, returning to points Williams & Connolly’s Kylie Hoover made in openings. “Mr. Mariano was desperate for cash, and the PIPE did not put Patriot National out of business.”
Email Arlin Crisco at acrisco@cvn.com.
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