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El Paso Lawyers Accused of Deducting $10.4M Tax From Clients’ Award

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El Paso Lawyers Accused of Deducting $10.4M Tax From Clients’ Award | Texas Lawyer
















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https://www.law.com/texaslawyer/2024/06/10/el-paso-lawyers-accused-of-deducting-10-4m-tax-from-clients-award/

Legal Malpractice

The attorneys were able to secure a jury verdict of more than $156 million in combined damages.

June 10, 2024 at 03:40 PM

3 minute read

Adolfo Pesquera

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What You Need to Know

  • A group of El Paso attorneys are accused of wrongfully charging $10.4M in professional services taxes to a client’s $370M wrongful death award.
  • The underlying case involved two traffic accident deaths that led to a New Mexico trial against FedEx.
  • The plaintiffs’ attorneys allegedly were obligated to pay the state’s tax from their own earnings.

Several El Paso-based attorneys are being sued for malpractice on an allegation they wrongfully deducted a New Mexico professional services sales tax of $10.4 million from a client’s $370 million award.

The plaintiff is asking the court to award him the $10.4 million in actual damages, plus forfeiture of the $185 million attorney fees award and punitive damages.

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