Opinion ID: 2716614
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: In May 2005, Scott Bertzyk and Mark James were opposing counsel in a commercial real estate litigation matter. Bertzyk, an attorney at Greenberg Traurig, LLP, represented the buyer, L.A. Pacific Center, Inc. (LAP). James, an attorney at Bullivant Houser Bailey, P.C., at the time, represented the sellers, Hotels Nevada, LLC, and Inns Nevada, LLC (Hotels and Inns) LAP filed a complaint in both Nevada and California against Hotels and Inns on related claims. However, in 2006, James 'The Honorable Kristina Pickering, Justice, voluntarily recused herself from participation in the decision of this matter. SUPREME COURT OF NEVADA 2 (0) 1947A transitioned out of active involvement in both litigations, and became president and CEO of Frias Holding Company (FHC), a taxi and limousine service company. In June 2008, the California suit went to arbitration, during which Bertzyk allegedly attacked James's character—asserting that James committed fraud and concealed or manipulated evidence. 2 In October 2009, the arbitration panel found in LAP's favor and awarded damages against Hotels and Inns According to James, before the panel issued the final arbitration award, Bertzyk suggested to one of Hotel and Inns' attorneys that Hotel and Inns should explore filing a legal malpractice suit against its former attorneys, including James. Meanwhile, in September 2008, James, in his capacity as FHC's president and CEO, retained attorney Mark Tratos of Greenberg Traurig to handle some intellectual property matters for FHC. And in July 2009, James retained attorney Michael Bonner (also of Greenberg Traurig) to personally represent him for his Nevada gaming license application. James was aware that Greenberg Traurig represented LAP in the litigation, but the firm did not inform James about the statements Bertzyk made during the arbitration. Moreover, during Greenberg Traurig's representation of James, LAP filed a lawsuit against Bullivant Houser Bailey, alleging attorney misconduct. In the misconduct matter, Bertzyk provided a declaration that reasserted the negative statements that he made about James during the arbitration. After learning of Bertzyk's actions, James and FHC (collectively, respondents) terminated their respective relationships with 2 This court stayed the proceedings in the Nevada litigation. SUPREME COURT OF NEVADA 3 (0) 1947A e Greenberg Traurig in August 2010 and filed a complaint against Bertzyk and Greenberg Traurig, LLP (collectively, appellants) in the Nevada district court, alleging that appellants committed malpractice and breached their professional and fiduciary duties by impugning James and FHC in furtherance of appellants' representation of LAP, which adversely affected their representation of James and FHC. The parties removed the case to federal district court pursuant to 28 U.S.C. §§ 1441 and 1446. Appellants filed a motion to dismiss, alleging that the litigation privilege barred respondents' claims. The federal district court denied appellants' motion without prejudice because Nevada had not addressed the legal-malpractice exception to the litigation privilege. Then, pursuant to NEAP 5, the federal court certified the following question to this court: Whether Nevada law recognizes an exception to the common law litigation privilege for legal malpractice and professional negligence actions. We previously accepted the question and now issue this opinion in answer.