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Corporations Keyed to Hazen
Megadyne Information Systems v. Rosner, Ownes & Nunziato
Citation:
2002 WL 31112563 (Cal. Ct. App.2002)Facts
In October 1995, Megadyne entered into a two-year contract with the Orange County Transportation Authority (OCTA). By November 1, Megadyne learned it had based its successful contract bid on misinformation OCTA had furnished Megadyne in March 1995. Megadyne retained the law firm of Irell & Manella to negotiate a resolution with OCTA of the situation caused by the misleading information. Irell & Manella had represented Megadyne for almost 20 years. In 1997, Megadyne hired the Rosner firm to recover damages from OCTA. The complaint alleged that the Rosner firm misled Megadyne about the actions taken on its behalf and despite Megadyne’s repeated requests for action, defendants continued to falsely reassure Megadyne that defendants were zealously protecting its interests. The complaint also alleged the Rosner firm’s active and knowing concealment of material facts, withheld to their client’s detriment, violated the fiduciary duties of honesty, good faith, fair dealing, and ethical behavior.
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