In the New Jersey case of Sheppard v Lentz the plaintiff had alleged that Attorney Perskie negligently referred a traffic personal injury case to Attorney Lentz. Perskie had determined that he had a conflict of interest prior to taking Sheppard on as a client and referred the case to Lentz. Perskie had taken no referral fee and had no case sharing arrangement with Lentz.
The original personal injury case did not result in a recover for Sheppard. Sheppard then sued Lentz for attorney malpractice and Perskie. Lentz separately settled with Sheppard. Sheppard continue to pursue a malpractice claim against Perskie for ‘Negligent Referral’.
The trial court granted a summary judgement for Perskie citing that New Jersey does not have a cause of action of ‘Negligent Referral’. The New Jersey Appellant Court affirmed the trial court’s decision.