We reported on this yesterday, but here is a further blog blurb from the NYLJ on this legal malpractice case.
“PLAINTIFF FORMER employee sued defendant law firm for legal malpractice alleging the attorneys gave her erroneous and incorrect legal advice and failed to disclose the existence of a conflict of interest, breaching their fiduciary duty to her. Defendants opposed and moved for dismissal. The court found the complaint alleged sufficient facts to defeat defendants’ motion to dismiss the legal malpractice claim as evidence established there was an attorney-client relationship between plaintiff and defendants, yet defendants were compensated by co-defendant employer for their representation of plaintiff. The court noted the firm failed to disclose the existence of this conflict of interest, or advise plaintiff as to the possible consequences of her cooperation with the internal investigation of co-defendant for alleged accounting fraud. Hence, it found plaintiff’s allegations of malpractice sufficient to survive dismissal, denying defendants’ motion.”