Wednesday, 26 April 2017
Last updated 9 min ago
Aug 5 2011 | 12:29pm ET
A hedge fund manager's law firm isn't responsible for the bad decisions he made that led to a $20 million judgment against him in favor of his former employer.
A New York State appeals court in Manhattan rejected Russel Bernard's claim that Proskauer Rose gave him bad advice during his departure from Oaktree Capital Management that ended in a $20 million arbitration award against him. Bernard's lawsuit against the law firm was dismissed by a lower court last year.
Bernard's problems, according to the arbitrator, were entirely of his own making. It ruled that Bernard's misappropriation of real-estate opportunities he worked on at Oaktree for his own planned firm constituted "gross negligence" and "willful misconduct" that he failed to tell Proskauer about.