Firm that admitted fraud cannot sue its attorneys for negligence
In Thomas v. Miller Canfield, the Plaintiffs attempted to sue their attorneys to help cover the cost of an arbitration award against them. The Plaintiffs lost a fraud claim and then weren't allowed to discharge the resulting judgment in bankruptcy--because it was based on fraud. They then sued their lawyers arguing that the lawyers knew of the fraud, or should have uncovered it, and should have protected them better.
The Court of Appeals held that even if the lawyers were dirty, the plaintiffs' hands were dirtier--making the courts unavailable to them for relief. Under the wrongful conduct rule, a party cannot sue someone else to recover damages for its own fraud.