Stay current on changes and developments in corporate law with a wide variety of resources and tools.
July 22 — An alleged oral employment contract requiring National Beverage Corporation CEO Nick Caporella to transfer $4 million in stock in exchange for legal services is unenforceable under Florida professional responsibility rules, according to an Eleventh Circuit ruling.
In a July 21 unpublished per curiam opinion, the U.S. Court of Appeals for the Eleventh Circuit held that even if the court assumed that the parties agreed to such terms, the alleged contract violated a Florida bar rule requiring attorneys entering into business transactions with clients to obtain informed written consent.
According to attorney David Mursten, the parties orally agreed to the “Dr. Pepper Deal,” in which the CEO of the soft drink company, which makes LaCroix beverages, agreed to pay him stock for services performed in anticipation of the company's sale if no sale ever occurred.
Mursten argued that the contract was not subject to the disclosure and recording requirements of Florida's Rule 4–1.8(a) because he was not Caporella's lawyer. Affirming a district court decision, the Eleventh Circuit disagreed.
“Overreaching is particularly of concern when a lawyer seeks to enforce an agreement to acquire stock worth millions of dollars in a lucrative business of a client who is also a personal friend. And the Supreme Court of Florida has held that a fee contract between a lawyer and a client that ‘fails to adhere to the requirements [of the Rules Regulating the Florida Bar] is against public policy and is not enforceable by the member of The Florida Bar who has violated the rule,'” the court wrote.
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
The opinion is available at http://www.bloomberglaw.com/public/document/DAVID_B_MURSTEN_PlaintiffAppellant_versus_NICK_A_CAPORELLA_Defend.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)