Recently, a significant lawsuit was initiated against Blank Rome finance partner James Cretella by his previous firm, Otterbourg P.C.. This legal action centers around serious claims of breach of contract, breach of fiduciary duty, fraudulent concealment, and unjust enrichment. The allegations present a dramatic narrative that oscillates between the mundane and the shocking. Notably, Otterbourg asserts that Cretella failed to inform them of his impending departure until after he had secured a seven-figure bonus, and he solicited clients to transition to his new firm. The complaint states: “He accepted [the bonus] fully aware that he was leaving and had orchestrated a scheme to undermine the Firm while supporting a competitor, in collusion with another departing partner, concealing crucial facts that might have influenced the Board’s decision to grant him a bonus.”
The allegations are intriguing and, to some extent, expected following a partner’s lateral move within the industry. Such issues generally do not escalate to litigation, but they represent common challenges in the legal profession. However, the inclusion of allegations regarding escorts adds a sensational twist to the case.
According to the complaint, Cretella engaged with an escort and other women during travel for firm business. A forensic examination of Cretella’s firm-issued and firm-paid phone purportedly unveiled that he participated in “highly inappropriate and potentially unlawful personal conduct” during Firm-funded travel. This included text exchanges with an “upscale dominatrix” identified as “Goddess Kat.” This revelation raises questions about professional conduct and the ethical responsibilities of legal practitioners.
Additionally, there are alarming allegations of cyberstalking. A separate federal lawsuit has been filed in the U.S. District Court for the District of Connecticut by Otterbourg’s chairman, Richard L. Stehl, and its president, Richard G. Haddad, concerning these claims. Cretella has responded with a motion to dismiss the suit. The leaders of Otterbourg accuse Cretella of engaging in repeated “unauthorized surveillance” of their private lives. As reported by Law.com:
“Forensic evidence indicates that over several years, Cretella gained unauthorized access to private, non-client files belonging to both men without their consent or any legitimate purpose,” the latest lawsuit contends. “These actions were not random clicks or accidental views. The data indicates hundreds of intentional intrusions—frequently occurring in the dead of night—targeting files that … were unrelated to firm business.”
Some of this sensitive information allegedly encompassed home security system codes and login credentials for live camera feeds inside and outside the Stehl family residence, personal tax returns and Social Security password files, privileged legal communications concerning “deeply personal family matters,” including divorce proceedings and custody agreements involving grandchildren, confidential medical records, private financial statements, and “intimate personal details,” such as children’s employment documents and home renovation plans.
These allegations paint a more scandalous picture.
In response to the federal action, Cretella’s motion to dismiss claims that the personal information was stored on the firm’s computer system and accessed through a preview function after conducting searches. “Although the plaintiffs attempt to obscure their stance with irrelevant claims about how Otterbourg’s computer system was designed to operate, the complaint establishes a fundamental fact detrimental to the plaintiffs’ standing: Using firm-provided credentials, Cretella and other attorneys searched the firm’s computer network and viewed the results of those searches, which allegedly encompassed files saved to the firm-wide network by the plaintiffs. The only reasonable conclusion is that the plaintiffs neglected to implement measures to safeguard their files from being accessed through routine, firmwide network searches.”
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are invaluable, so please connect with her. Feel free to email her with any tips, questions, or comments, and follow her on Twitter @Kathryn1 or on Mastodon @Kathryn1@mastodon.social.
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