Defense wants to seal new malpractice claims at Katten Muchin Rosenman LLP

A malpractice case against Katten Muchin Rosenman LLP has erupted into a fight over new claims against a key partner with defense attorneys seeking to keep secret an amended complaint that alleges broad misconduct.

Attorneys for CashCall Inc., a lender sued across the nation for its dealings on tribal lands, say recent depositions have further exposed wrongdoing by Katten and D.C.-based partner Claudia Callaway, who advised CashCall on the ultimately disastrous tribal-based lending program.

But Katten's attorneys at Munger, Tolles & Olson LLP say the proposed third amended complaint from Keller/Anderle LLP is aimed at punishing the firm through "false and harassing allegations" that threaten Callaway's reputation.

They want Orange County Superior Court Judge William D. Claster to seal it "in order to preserve the status quo until such time as the Court can rule on the proposed amendment."

In opposition filed late Tuesday, CashCall accuses Katten of disregarding the First Amendment.

"Defendants' only stated interest is in preventing embarrassment and potential reputational damage from the public's discovering the allegations of Defendants' fraudulent conduct and massive resulting damages," according to the opposition.

It's a battle between nationally renowned trial lawyers Brad D. Brian and Jennifer L. Keller, and it encompasses thorny malpractice and publicity issues involving claims against Callaway that weren't included in the original and second amended complaint.

Keller argues no valid reason exists to seal the third amended complaint, which she said is based on new depositions over the last four months that "exposed Katten Muchin Rosenman and Claudia Callaway's knowing and intentional fraud and malpractice, which destroyed two of their client's thriving businesses lines."

The alleged misconduct includes opinion letters issued by Katten and Callway that contained knowingly false information but were approved anyway by the firm's third-party opinion review committee. Damages were said to be "more than $500 million" in the second amended complaint, and the proposed third amended complaint increases the amount. The precise figure is redacted in the recent filings. Keller argues that's improper; Brian's co-counsel Bethany W. Kristovich called the true figure "extortionate" and said it "reeks of impropriety."

The figure "appears designed to harm Katten by alarming its clients, lateral candidates, and current attorneys by suggesting that Katten could be facing an existential loss, which could cause them to look to other firms," Kristovich said.

In her opposition, Keller emphasizes the defense motion wasn't filed under seal.

"Instead, apparently recognizing a loss was inevitable, they decided to strike the first blow with the media in a public filing that attacks both Plaintiffs and their counsel and seeks to undermine their credibility and professional ethics," according to the opposition.

Claster scheduled a hearing Jan. 22. CashCall, Inc., et al. v. Katten Muchin Rosenman LLP, et al., 2017-00914968 (O.C. Super., Ct., file April 14, 2017).