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Russo v. Griffin
Citation:
510 A.2d 436 (Vt. 1986)Facts
Joseph Russo, owner of J.A. Russo Paving, Inc., wished to transfer his business to his sons, Anthony and Frank. To help with the transfer, the brothers hired law firm Griffin & Griffin. The firm drafted and submitted forms to complete the transfer from Joseph to the brothers.
Years later, Frank decided to leave the paving business to potentially purchase a laundromat. The brothers agreed to sell Frank’s shares in the business to Anthony, but Joseph wanted the brothers to meet with Griffin & Griffin to discuss the transfer. At the meeting, the brothers discussed the practical matters of transferring shares in the business from one brother to another. However, at no time in the meeting did the law firm suggest that the brothers sign a covenant not to compete, a practice often employed by law firms in similar circumstances. Months after the transfer, Frank opened another paving business in direct competition with J.A. Russo Paving.
J.A. Russo Paving sued Griffin & Griffin for malpractice in neglecting to suggest a covenant not to compete. At trial, the plaintiffs provided two lawyers as witnesses that stated covenants not to compete were commonplace in Vermont. On the other hand, the defendants provided two local lawyers that stated covenants not to compete were not commonplace in Rutledge, the town in which Griffin & Griffin was located. The court ruled for the defendants, and Russo Paving appealed.
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Topic Resources
Topic Outline
Negligence