Arizona court to rule on suit against out-of-state law firm
PHOENIX -- The Arizona Supreme Court on Friday will rule on whether a Connecticut law firm whose lawyers aren't admitted to practice law in Arizona can be sued in the state over work done for Arizona clients.
The Supreme Court is reviewing an appeals court ruling that revived a lawsuit against the firm by saying the firm can be sued in Arizona.
Pullmon & Comley for $50,000 provided Arizona investors with a letter saying federal tax law allowed a tax shelter.
However, the IRS disallowed losses claimed by the investors, resulting in a sizable tax bill for them.
The investors sued, but a trial judge ruled that Arizona courts didn't have jurisdiction.
The Court of Appeals ruling said taking on Arizona clients made the firm subject to suits in Arizona.