From Sacramento Business Journal-Law firm sued over local construction defect case Plaintiffs say they were kept in the dark about settlement proceedings

A Southern California law firm that has won more than $17 million from construction defect court settlements in the Sacramento area is being sued by former clients for legal malpractice.

Eleven local parties allege Lee Jackson, a partner in the Santa Monica office of Milstein, Adelman & Kreger LLP, misled them and settled a construction defect lawsuit against U.S. Home Corp. for less than 10 percent of the estimated cost of repairs.

The lawsuit, filed June 18 in Sacramento County Superior Court, alleges negligence, breach of contract, breach of fiduciary duty and fraud on the part of the Milstein firm. The suit demands damages of $1.5 million plus interest, punitive damages, fees and court costs.

“These people don’t feel they got adequate representation,” said Eugene Haydu, a Sacramento attorney who represents the plaintiffs. “We (attorneys) have a special duty to homeowners. Most of this is brand new to them and they can be taken advantage of — that’s what I think is most egregious.”

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