J. David Tax Law Facing Class Action Over Alleged Legal Malpractice, False Advertising in Wisconsin

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Three Wisconsin consumers and a business claim in a proposed class action that J. David Tax Law committed legal malpractice and misrepresented its capabilities as a tax law firm in the state.

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The nine-page lawsuit alleges that the Florida-based firm provided “negligent” and “deficient” legal services and misled clients to expect adequate legal representation in their jurisdiction, when, in fact, the lawyers employed by the defendant were not actually licensed in Wisconsin.

The suit relays that “[o]nly later did [the plaintiffs] learn that none of J. David’s employees were licensed in Wisconsin and that they were not following the ethical requirements for attorneys practicing in this state.”

In addition, the case claims that the law firm charged the plaintiffs unlawful fees in exchange for its services. Specifically, J. David Tax Law collected from the consumers and plaintiff business “non-refundable fee[s]” that were purportedly “earned upon receipt,” the complaint shares. The filing contends that the fees were unreasonable and “unearned,” as the amount charged by the firm was neither a retainer nor an “advanced fee” for services yet to be performed.

According to the lawsuit, J. David’s practices “failed to comport with the degree of care, skill, and judgment of a reasonably prudent lawyer practicing in Wisconsin … and constituted negligence.”

One plaintiff, a man connected to plaintiff business GH Heating & Air LLC, sought the firm’s assistance with tax debts in April 2022, the suit says. Per the case, the contract he signed required him to pay $21,400 in exchange for the defendant’s services.

Two other plaintiffs paid a heftier price, the complaint relays. The couple, who contacted the firm to help them address tax debt related to a construction company partly owned by the husband, signed a contract with J. David in April 2021 that required them to pay $62,000 in exchange for legal services, the filing says.

According to the case, because the Internal Revenue Service (IRS) was pursuing the plaintiffs, the defendant “promised to obtain a stay on collection activity and promised to file a Whistleblower claim” with the agency, which would protect the couple and result in a monetary award.

However, despite the firm’s promises, “nothing was ever filed to pursue a Federal Whistleblower action or pursue any monetary award,” the complaint alleges.

What’s more, the defendant also claimed that it would address the plaintiffs’ tax assessment from the Wisconsin Department of Revenue (DOR), the filing shares. Though the firm sent letters to the Wisconsin Tax Appeals Commission to address the tax assessments, the submissions were dismissed because they arrived after the appeals deadline and were not sent by certified mail as required, the lawsuit states.

As the suit tells it, J. David’s failure to properly serve a notice of appeal to the state DOR has prevented the plaintiffs from obtaining relief and has resulted in their having to make monthly payments towards the tax debt.

“This was not what J. David promised to accomplish for [the plaintiffs], and it falls below J. David’s standard of care,” the complaint contests.

Moreover, the IRS is still involved in the couple’s case as well, the filing adds.

“Far from being shielded from the tax debt, the IRS has placed [the plaintiffs] in an uncollectable status due to their current inability to pay the taxes, but the liability is still hanging over them,” the lawsuit charges.

The suit claims that J. David’s negligent conduct has misled consumers about its capabilities as a tax law firm in Wisconsin and, overall, constitutes legal malpractice.

“Among other things, J. David represented to the plaintiffs and induced them to expect that they would not be charged an unreasonable fee and that they would be represented by someone who was familiar with the applicable law and capable of meeting the deadlines and other requirements imposed by the law,” the case contends. “But the charges were (and are) unreasonable, and J. David was not so capable.”

The lawsuit looks to represent any Wisconsin resident who contracted with J. David Tax Law within the applicable statute of limitations period.

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