TORONTO — It looks like businessman Nathan Jacobson and lawyer Steven Skurka have not had enough of each other.
On Nov. 26, Skurka filed court documents in response to a statement of claim issued by Jacobson earlier this year.
Jacobson is suing Skurka, a contributor to The CJN, for more than $32 million over allegations of “ineffective” and “negligent” legal representation. Skurka served as Jacobson’s lead counsel in a U.S. case in which the Toronto-based businessman was charged with money laundering in connection to an Internet pharmacy business.
Jacobson says he always maintained his innocence. He alleges he pleaded guilty after being advised to do so by Skurka. Jacobson spent about a month in jail in Canada and another 44 days in jail in the United States before a U.S. District Court in California last July withdrew his conviction and guilty plea.
Jacobson is suing Skurka for the $1.7 million in legal fees he paid him, $4.5 million for civil forfeiture to American authorities, approximately $1.66 million he paid his U.S. legal team, who represented him in rescinding his conviction, special damages in the amount of $10 million for lost income and lost business opportunities, general damages of $10 million, aggravated damages of $3.5 million and punitive damages of $1 million.
“Mr. Jacobson states that the plea of guilty to a serious felony, the payment of a fine in the amount of U.S. $4,500,000, the loss of reputation, the travel restrictions arising out of a felony conviction, the loss of business and the unconscionable payment to the defendant Skurka in the amount of almost $1,700,000 all arose and was directly caused by the negligence and breach of express and implied contractual obligations of the defendant Skurka,” Jacobson’s statement of claim alleges.
His court documents also allege that “Skurka knew or ought to have known that the United States government could not prove that Mr. Jacobson was guilty of the various criminal charges yet advised Mr. Jacobson to plead guilty.”
The Globe and Mail reported that Jacobson is also suing Toronto defence lawyer Marie Henein. Skurka used her and U.S. lawyers for legal advice, and she received $110,000. She has also filed a statement of defense refuting the allegations, the paper reported.
Skurka rejected the allegations in his statement of defence. He is counter-suing Jacobson for $1.8 million, alleging that “Jacobson initiated this action against Skurka for the predominant purposes of attracting favourable media attention for himself and for harming Skurka. In so doing, Jacobson initiated this action against Skurka for the predominant purpose of furthering indirect and collateral objectives.”
“The commencement of this action has caused significant damage to Skurka. It has damaged his reputation in the legal community, which was indeed Jacobson’s objective. As a result of the commencement of this action against Skurka… Jacobson is liable to Skurka for abuse of process,” Skurka’s court documents state.
In his statement of defence, Skurka also stated, “Jacobson alone took the voluntary decision to plead guilty.”
Jacobson was represented in the run-up to the plea agreement by leading U.S. counsel and his allegations in court documents are “a concoction of deliberate distortions and vicious fabrications,” Skurka’s statement of defence alleges.
None of the allegations by either party have been proven in court.
Speaking from Moscow, where he was on business, Jacobson said that “the courts in Canada will decide. I look forward eagerly to the proceedings in court.”
Toronto lawyer Brian Greenspan, who represented Skurka in California in response to Jacobson’s motion there, said: “We’re pleased there has finally been an opportunity to fully respond to the claims and allegations that have been made and which, until now, the restrictions of solicitor-client privilege have prevented Mr. Skurka from providing a candid and complete answer to.”