Co-Defendant Opposes K&L Gates, Le-Nature's Accord
"Indeed, because the trustee has alleged that K&L controlled and limited P&W's performance of the contract and P&W's access to information, K&L would bear primary, if not sole, responsibility for the alleged breach of contract if the trustee's allegations are proven at trial," Pascarella & Wiker said.
The accounting firm said the proposed settlement agreement takes away the firm's right to seek indemnification from K&L Gates. Pascarella & Wiker argued the settlement would force it at trial to prove that K&L Gates, who would not be at the trial, was a co-obligor and is liable for the breach of contract.
Kirschner said in his motion seeking approval of the settlement that, if he is unable to settle his claims with the accounting firm, he will "promptly" proceed with the remaining claims.
Kirschner said that if Pascarella & Wiker does not agree to an entry of discontinuance of the action against K&L Gates in state court, he would ask the court to enter an order of discontinuance. There has been no movement on the state-court docket. U.S. Bankruptcy Judge Thomas P. Agresti set a hearing on the proposed settlement for Thursday. In light of Pascarella & Wiker's opposition, he ordered Kirschner to respond to the motion by today.
Patricia L. Dodge of Meyer, Unkovic & Scott in Pittsburgh represents Pascarella & Wiker and did not respond to a request for comment. Sigmund S. Wissner-Gross of Brown Rudnick in New York represents Kirschner and declined to comment. Craig D. Singer of Williams & Connolly in Washington, D.C., represents K&L Gates and declined to comment.