When might an  attorney be liable to a non-client for legal malpractice?  ""The law in New York does not recognize any liability on the part of an attorney to a nonclient third party for injuries sustained as a result of an attorney’s actions in representing his client absent fraud, collusion, or a malicious or tortious act" (Doo v Berger, 227 AD2d 435, 436 [1996]). Brown v Mohammed
2011 NY Slip Op 50847(U); Decided on May 12, 2011 ; Supreme Court, Kings County ; Lewis, J. tells us the story of one such instance.
 

"This case involves an alleged fraudulent deed to the premises at 285 East 55th Street in Brooklyn (premises), and an alleged related money laundering scheme. Defendant Ricardo Mohammed (Mohammed) purchased the premises from plaintiffs, Agnes Alston and Selma Gunther Brown (plaintiffs) on March 23, 2007, but plaintiffs dispute the validity of the sale and argue that the contract of sale and deed are unenforceable.
Option One concurrently provided a mortgage loan to Mohammed to purchase the disputed premises on March 23, 2007. It alleges that it wired the $458,317.03 loan proceeds into the IOLA (i.e., the "interest on lawyer account") of third-party defendant Natasha Pierre (Pierre), who represented Option One as its closing agent on the Mohammed mortgage. Option One further alleges that Pierre simultaneously and improperly represented Mohammed in the real-estate transaction; that Pierre received the wired funds from Option One; and that Pierre issued six checks totaling $415,337.46, each payable to George Alston, husband of plaintiff Agnes Alston. The Alstons held an undivided one-half interest in the disputed premises, but Mr. Alston had died on January 26, 2001Option One additionally alleges in its fourth cause of action (Id. at ¶ 58) that third-party defendant Abakporo, an attorney, deposited the six checks, endorsed "George Alston" and "Eric Abakporo" to his own IOLA. The present motion to dismiss and cross motion for default judgment concern Option One’s third-party complaint against Abakporo.

Abakporo contends that a man purporting to be George Alston, along with his alleged grandson Mark Bailey, appeared at Abakporo’s law office on March 26, 2007. Abakporo further alleges that this purported George Alston gave him a New York State Identification Card and the checks which had been issued by Pierre. The purported George Alston allegedly asked Abakporo to deposit the funds into Abakporo’s escrow account and to later release the funds to Mark Bailey. However, the individual who identified himself as Mark Bailey then informed Abakporo that he did not have a checking account and requested that Abakporo issue the funds to his alleged brother, Juan Pimentel. Abakporo complied with these requests and issued checks totaling over $400,000 in April 2007 from his escrow account to Juan Pimentel, who has since been indicted for his role in this scheme.

Finally, Option One alleges regarding Abakporo that Abakporo "negligently, recklessly or intentionally allowed his attorney IOLA account to be used to launder funds stolen from Option One." Here, Option One has set forth factual allegations bringing this case into one of the quoted exceptions. Option One in other words alleges that Abakporo committed a "tortious act" by converting Option One’s funds and/or colluding with Pimintel in the apparent money laundering scheme. Such allegations enable Option One’s claim sounding in attorney malpractice to stand. Overall, the adequately pleaded claims for conversion, aiding and abetting conversion and attorney malpractice negate Abakporo’s motion to dismiss Option One’s third-party complaint. "