The firms allegedly misled a client regarding the enforceability of the contract
Law firms Dentons US and Boies Schiller Flexner are facing a $900 million lawsuit following allegations that they misled a client regarding the enforceability of a contract with Senelec, the state-owned electric power company of Senegal, Reuters reported.
The lawsuit was filed in Manhattan federal court by Massachusetts businessman Frank Corsini and his energy companies, Liberty ECO and Liberty-CITIC. The complaint accused Dentons and Boies Schiller and several of their attorneys of engaging in "wholesale acts of fraud, extortion, obstruction of justice, perjury," among other violations. According to the plaintiffs, these actions were part of a prolonged deception regarding the legal status of a power purchasing agreement negotiated with Senelec in 2012.
Paul Batista, the New York-based attorney representing the plaintiffs, expressed confidence in the strength of the case against the defendants. He detailed how the law firms had continually reassured the plaintiffs of the agreement’s validity and enforceability despite never receiving approval from Senelec's board. This misrepresentation led the plaintiffs to maintain their contractual expectations and investments over several years.
The lawsuit outlined that Corsini’s companies, which specialize in constructing power plants and other power-generating facilities, were significantly misled about their legal standing. This misinformation persisted as they incurred millions in fees paid to the law firms, which allegedly ignored several "red flags" associated with the contract.
The legal dispute escalated when Corsini's companies brought a claim against Senelec before the ICC International Court of Arbitration in 2020, demanding over $250 million in damages for the alleged breach of contract. However, the ICC tribunal determined that the power purchasing agreement was not binding and that Senelec had not breached it, a ruling that undercut the assurances provided by Dentons and Boies Schiller.
Reacting to the lawsuit, a spokesperson for Boies Schiller stated that the lawsuit was without merit and expressed confidence in a swift resolution.
The New York complaint also included allegations under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), fraud, and other claims. The plaintiffs are seeking more than $300 million in damages, which would be automatically tripled under RICO, bringing the total claim to approximately $900 million.
