PHOENIX — An Arizona court’s ruling said 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.
Pullmon & Comley for $50,000 had provided Arizona investors with a letter
saying a tax shelter was allowed under federal tax law.
However, the IRS disallowed losses claimed by the investors, resulting in a
sizable tax bill for them.
Investors alleged racketeering and other wrongdoing in a suit, but a judge
ruled that Arizona courts didn’t have jurisdiction.
The Court of Appeals’ ruling Thursday said the firm can be sued in Arizona and
revives the lawsuit.
The ruling said the firm should have expected that taking on Arizona clients
would make it subject to the jurisdiction of Arizona courts.