August 26, 2010
$1.67 Billion Scrivener's Error
Last week we wrote about an error by a law firm that resulted in lawyers being held to be liable for over $1.3 Million. Now we have a decision dealing with a situation in which a lawyer admittedly made a mistake, but got a "do-over". But for the 7th Circuit's decision, Barry Peters faced dealing with responsibility for an error that could have cost his company $1.67 Billion. Debra Cassens Weiss, writing for the ABA Legal News Update, Friday edition, brought the case to our attention.
The case involved an ERISA plan document drafted by Peters that included the phrase "transition factor" twice in one paragraph when it should have appeared only once. The oversight--the type that keeps corporate lawyers awake at night--first appeared in the fourth draft of the document, and escaped detection in the fifth, sixth and final drafts.
Judge Tinder, writing for the panel in a decision issued last Tuesday,observed "[p]eople make mistakes. . . ERISA's rules are not so strict as to deny an employer equitable relief. . . "The entire opinion is available in a link provided in Debra's article.
The case involved an ERISA plan document drafted by Peters that included the phrase "transition factor" twice in one paragraph when it should have appeared only once. The oversight--the type that keeps corporate lawyers awake at night--first appeared in the fourth draft of the document, and escaped detection in the fifth, sixth and final drafts.
Judge Tinder, writing for the panel in a decision issued last Tuesday, observed "[p]eople make mistakes. . . ERISA's rules are not so strict as to deny an employer equibable relief. . . "The entire opinion is available in a link provided in Debra's article.
We anticipate more action on this issue. Matthew Hurst,of Susman Heffner & Hurst, the plaintiffs' lawyer, observed that "courts are divided on the scrivener's error issue. . .this split should be resolved."
A link to Debra's article is here.
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