Florida law firm Akerman LLP was recently sued by a former client, a real estate investment firm, for more than $45 million in damages. The suit arises from poorly-drafted commercial leases.
The landlord hired the law firm to provide commercial leases for the landlord's medical services tenant. According to the complaint:
"Akerman failed to advise [the plaintiff] of the most basic and appropriate remedies available to landlords under Florida law in the event of a breach by a tenant … Because of Akerman's malpractice, [the plaintiff] was left holding the proverbial bag to the tune of tens of millions of dollars with no adequate remedies."
The former client asserts that Akerman negotiated lease agreements that improperly reflected Florida law regarding rent acceleration. In some instances, rent acceleration is not an enforceable remedy in Florida.
According to the complaint, the agreements needed to specify that in the event of the breach, the lease would remain, but the right of possession would be terminated, and the landlord would then re-rent it for the "account of the tenant." Without those magic words, Florida courts consider the agreement as potentially providing illegal double recovery.
The suit seeks 45 million dollars in damages, representing the lost lease income that is unrecoverable from the tenant under the contract drafted by the defendants. Joe Patrice, "Am Law 100 Firm Hit With Second Malpractice Claim This Year… With Three, They Get A Free Sandwich!" www.abovethelaw.com. (Jul. 15, 2025).
Commentary
A fundamental ethical and professional tenet is competency. The American Bar Association Model Rule 1.1 addresses competence:
A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation reasonably necessary for the representation.
Comment 5 to Rule 1.1 states, in part:
Competent handling of a particular matter includes inquiry into and analysis of the factual and legal elements of the problem, and use of methods and procedures meeting the standards of competent practitioners. It also includes adequate preparation. The required attention and preparation are determined in part by what is at stake; major litigation and complex transactions ordinarily require more extensive treatment than matters of lesser complexity and consequence. …
It is unclear whether the applicable Florida statutes were amended since the creation of the leases or simply overlooked. It is further unclear whether the leases at issue were drafted specifically for the client or were boilerplate documents that were not updated.
Either way, attorneys must review any statutory amendments or local practice rules and procedures in the areas of law in which it provides services.
