Barnett v. Schwartz
The plaintiffs sued their attorneys for legal malpractice concerning a lease and purchase option agreement for commercial property. The property was classified as an inactive hazardous waste disposal site, a fact the attorneys, Jeffrey Schwartz and his law firm, knew but allegedly failed to disclose to the plaintiffs, advising them to enter an "as is" agreement. Two years later, the plaintiffs discovered the environmental contamination. The attorneys then reportedly advised them to continue paying rent and exercise the purchase option, assuring a quick cleanup, which ultimately took three years. A jury found the defendants liable for malpractice for failing to inform the plaintiffs about the environmental issues and the implications of the "as is" clause. The appellate court upheld the jury's findings on liability and damages but modified the judgment to include an award of prejudgment interest to the plaintiffs.