Huge Legal Malpractice Win v. Cadwalader
We reported theRed Zone v. Cadwalader summary judgment news back in September. Today, the case is complete, andthe Judge awarded $ 16.7 million to plaintiff Red Zone for Cadwalader's failure to carry out its instructions to ensure a letter agreement between Red Zone and UBS Securities LLC which itself memorialized an oral agreement to limit Red Zone's liability for fees to UBS for a Six Flags deal.
Christine Simmons writes in today's NYLJ that the case is ended. "
Red Zone filed suit against Cadwalader after the Appellate Division, First Department, ruled in 2010 that Red Zone owed UBS $8 million plus interest. In August, Acting Supreme Court Justice Melvin Schweitzer granted summary judgment to Red Zone against Cadwalader but held off on the amount of damages (NYLJ, Sept. 5, 2013).
In a new ruling, Schweitzer awarded Red Zone about $11.7 million in damages and another $1.5 million for its legal fees in the underlying litigation with UBS. With interest, the judgment against Cadwalader totals more than $16.7 million. "The judge awarded to Red Zone every dollar proven in our summary judgment papers," he said in an interview.
Meanwhile, Cadwalader's appeal on the summary judgment decision is pending in the First Department. David Marriott, a partner at Cravath, Swaine & Moore who represented Cadwalader, did not return a message seeking comment, nor did a Cadwalader spokesman."