When you hire a lawyer for a deal, you are trusting them with your business, your investment, and your future.
If bad contract drafting, faulty advice, or missed risks in a transaction caused significant loss, you may have a business or transactional legal malpractice claim.
The McGavock Reed Law Firm represents business owners, investors, founders, and professionals in malpractice claims arising from deals and transactions in Washington, D.C. and Virginia.
When Transactional Mistakes Become Legal Malpractice
Not every bad deal is malpractice. Markets change. Counterparties negotiate hard. Some risks are unavoidable.
Transactional malpractice occurs when a lawyer:
- Fails to perform basic due diligence
- Drafts contracts that do not reflect the client’s intent or protect their interests
- Misses obvious legal issues that competent counsel would have addressed
- Gives incorrect advice on critical legal points, such as regulatory or tax consequences
And because of that failure, you suffer measurable financial harm: lost equity, unexpected tax liability, litigation exposure, or a failed transaction.
Common Transactional Malpractice Scenarios
Botched Contract Drafting or Negotiation
Your contracts are only as good as the lawyer who drafted and negotiated them. We evaluate malpractice claims involving:
- Missing or ambiguous key terms (price, scope, performance, remedies)
- Failing to include non-compete, non-solicitation, or non-disclosure protections where necessary
- Drafting that benefits the other side contrary to your stated goals
- Failing to address obvious risks or contingencies discussed with counsel
Real Estate and Title Errors
In real estate and development, mistakes can be extremely costly. Transactional malpractice may involve:
- Failure to detect title defects or liens
- Poorly drafted purchase and sale agreements
- Mishandled contingencies (financing, inspections, zoning approvals)
- Overlooking easements, restrictive covenants, or environmental issues
- Misadvice on zoning or land-use restrictions
M&A and Investment-Related Malpractice
Deals involving companies, assets, or significant investments often require careful legal guidance. Common claims include:
- Inadequate due diligence that misses key liabilities or risks
- Misadvice about deal structure, including tax and regulatory implications
- Failure to negotiate appropriate indemnities, representations, and warranties
- Not identifying conflicts of interest in multi-party or roll-up transactions
Regulatory, Compliance, and Tax Misadvice
In D.C. and Virginia, businesses operate under complex local, federal, and sometimes industry-specific rules. Legal malpractice can involve:
- Incorrect advice that leads to regulatory investigations or penalties
- Structuring entities or transactions in a way that creates unnecessary tax exposure
- Failing to obtain or advise on required licenses or approvals
- Overlooking conflicts-of-interest rules for professionals and fiduciaries
Calculating Losses in Transactional Legal Malpractice
In business and transactional malpractice, damages usually go far beyond the fees you paid the lawyer.
We focus on what the deal should have looked like with competent representation, and compare that to your actual outcome. Your recoverable losses may include:
- Lost deal value – The difference between a properly structured deal and the one you ended up with
- Lost equity or ownership – Shares or interests you gave up or failed to receive
- Increased tax burden – Extra tax you paid because of bad structuring
- Regulatory or litigation exposure – Fines, settlements, or judgments tied to faulty legal advice
- Costs to unwind or fix the transaction – Fees paid to new counsel, restructuring, or litigation
We work with financial and industry experts when appropriate to quantify these losses.
Who We Represent
Our business and transactional legal malpractice clients include:
- Privately held companies and partnerships
- Founders and entrepreneurs
- Real estate investors and developers
- Professionals (including doctors, accountants, and consultants) harmed by bad legal advice
- Minority shareholders and investors who relied on counsel to protect their interests
Minority shareholders and investors who relied on counsel to protect their interests
