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On Friday Ohio federal judge William O. Bertleman denied Lipsitz Green Scime Cambria LLP attorneys’ attempt to dismiss a multimillion-dollar malpractice suit from the brother of Hustler founder Larry Flynt. Flynt claimed the lawyers mishandled, among other things, his rights to the Hustler name. The lawsuit proceeds.
In October, 2011 Jimmy Flynt filed two federal lawsuits in the United States District Court, Southern District of Ohio, Western Division. One suit was aimed at his brother Larry. The other suit named attorney Paul Cambria Jr.
In that second one, Jimmy Flynt sued attorney Cambria [pictured] and four other attorneys, and the Buffalo, N.Y. law firm of Lipsitz, Green, Scime and Cambria. Jimmy Flynt claimed the attorneys failed to protect his business interests, misrepresented him in several real estate ventures and asset transfers and took action against him, in a conflict of interest and facilitated his firing from Flynt Management Group.
Also in that suit Jimmy Flynt claims that since at least 1989, Larry has made repeated and “unequivocal” statements and assurances to him that he would have continued and indefinite employment at Hustler and that he could not be terminated. It was also during the course of their business/employment relationship, Larry and Jimmy shared legal advisors, both in connection with criminal matters as well as their business interests.
Jimmy and Larry have also shared financial advisors and have mutually sought the advice and service of various executives, managers, and employees in connection with Hustler’s business affairs and operations.
The suit states that over the years, specifically the last 15 years, Jimmy has been encouraged/induced/coerced/directed to transfer legal title to millions of dollars in assets (cash, stock, personal property, real property, etc.) to Larry, directly or indirectly, in reliance on Larry’s specific and unequivocal promises to him that he could not and would not be terminated and that he would have continued and indefinite employment at Hustler for the rest of his life.
In his second complaint, Jimmy Flynt claims attorney Paul Cambria Jr. as well as four other attorneys failed to properly represent him in a string of real estate deals and asset transfers, by representing both sides of the deals, and allowing him to “transfer stock worth millions of dollars for no consideration.”
Jimmy Flynt also claims the attorneys also “failed to properly advise, counsel and guide Jimmy and Hustler Cincinnati Inc. as to their trademark and intellectual property rights with respect to use of the Hustler name/mark, in connection with retail services in downtown Cincinnati, through HNG and HCI.
Cambria, according to the suit, failed to advise Jimmy and HCI that they would potentially jeopardize and/or lose their rights to the Hustler name/mark by making monetary transfers to LFP, docketed on HCI’s financial books and tax returns, as ‘licensing fees.’ These transfers were directed by Cambria and defendant attorneys without full and proper disclosure as to the legal implications.”
Flynt also says that the attorneys “participated in and/or were complicit with an attempted scheme to fraudulently obtain more than $400,000 from HCI/Jimmy at the request of Larry in April of 2009, to include the drafting of a fraudulent promissory note which violated Ohio’s securities laws.”
Jimmy Flynt also says, the attorneys helped facilitate his firing from Flynt Management Group “so as to create the opportunity for Cambria and the Lipsitz Green firm to have increased power and control of the Hustler Enterprise, to protect their retainer agreement and yearly revenue stream and to otherwise increase the likelihood of increased revenues and professional fees in the years to come.”
In that suit Jimmy Flynt seeks $1 million in compensatory and another $1 million punitive damages.
