This is a Politico – A List legal malpractice case.  In Waggoner v. Caruso   2009 NY Slip Op 06739 Decided on September 29, 2009 ; Appellate Division, First Department ; (DeGrasse, J.) we see some of the nations biggest names.

Besides being about a $ 10 Million loss, the players are all very recognizable.  For Plaintiff, Helms & Greene along with Asa Hutchinson [former Representative (R-AK), former US Attorney, Former DEA Administrator, House Manager of the impeachment case and Venable LLP..  For Defendants, Bracewell & Giuliani, Pillsbury Winthrop,  Patterson Belknap and Chadbourne & Parke. 

After dismissal in Supreme Court  this case then went to the First Department.  The original  decision was by Justice Fried, There were four causes of action:  malpractice, breach of fiduciary duty, fraud and conspiracy to commit fraud.  On the malpractice portion, Pillsbury argued that no court in New York has ever addressed the issue of applying the continuous representation doctrine to the former firm of an attorney who left that firm and took the client with him. 

Supreme Court went on to discuss the breach of Fiduciary duty claim, citing Weil Gotschal & Manges LLP v, Fashion Boutique of Short Hills, Inc., 10 AD3d 267 (1st Dept, 2004). Supreme Court found that plaintiff must prove the existence of a fiduciary relationship and a breach of the duty imposed by such a relationship that  directly caused actual damages.  "Where the only actual damage alleged is the value of a lost claim, a plaintiff  client must prove that he or she would have prevailed in the underlying action but for the attorney’s conduct.  In other words, as in a malpractice claim, the plaintiff must meet the case within a case requirement."

More tomorrow