Reported in the www.nylj.com today is an interesting case on the attorney-client relationship, attorney malpractice and non-recourse loans.
Sette v. Appleby, 2005 NY Slip Op 50948 www.us.courts.state,ny.us.reporter tells the story of a successful personal injury litigant. After attorney Michael Flomenhaft won a liability verdict in a bifurcated trial, attorney and client negotiated a non-recourse loan. The loan was to be used for disbursements and for the client’s personal use.
Client won 1.5 million at the damages trial, but had already changed attorneys by then. She refused to pay back the non-recourse loan, and sued what appears to be the lender and Flomenhaft arguing coercion.
The court determined that client well understood and negotiated the loan, and in view of her recovery of more than $ 1 million, repayment was required.Her claim was dismissed.