Lawyers arguing over legal fees make up a surprising number of law suits. When one reads down the list of AD cases to be argued, the number of law firms as parties is striking. in Tassan v Pugatch & Nikolis 2014 NY Slip Op 33441(U) December 29, 2014 Supreme Court, Suffolk County Docket Number: 30031/2012 Judge: William B. Rebolini we see a fight to the death relationship between former partners and an accusation of deceit under JL 487. The Court pays it little heed.
"This is an action for money damages and an "accounting" regarding the dissolution of the
partnership of the parties in 2006, and the plaintiff’s alleged entitlement to a share of the legal fees
recovered by the defendants thereafter. In his complaint the plaintiff alleges, among other things,
that the written dissolution agreement between the parties provided that he would receive one-third
of the net fees recovered in all "open personal injury matters" within ten days of the clearance of
funds in the escrow account of the new partnership formed by the defendants, and that the defendants settled a specific personal injury case without paying over to him the share of the fee that he is entitled to receive. In his complaint, the plaintiff respectively sets forth seven causes of action for an accounting , breach of contract, conversion, breach of fiduciary duty, violation of Judiciary Law § 487, failure to file proper closing statements, and fraudulent concealment. It is undisputed that the plaintiff and the defendants were equal partners in the law firm Tassan, Pugatch and Nikolis beginning in approximately 1998, that the parties entered into a written dissolution agreement dated December 5, 2006 (Agreement), and that the Agreement included a list of open personal injury matters from which each of the partners would be entitled to one-third of the net fee. It is also undisputed that the plaintiff has served a notice of lien upon the defendants in an action in which he claims a share of the legal fees entitled Shkreli v Boston Properties, Inc., Supreme Court, Bronx County, Index No. 05-17913 (Shkreli Action), and that the defendants herein paid the plaintiff his share of the fees generated for a number of years, and then decided to stop paying any further fees under the agreement.
The plaintiff now moves for an preliminary injunction and other relief. In support of the motion the plaintiff submits, among other things, the Agreement, his affidavit, and the transcript of is deposition and that of the defendant Phillip Nikolis. To be entitled to a preliminary injunction,the moving party has the burden of demonstrating (1) a likelihood of success on the merits, (2)
irreparable injury absent granting the preliminary injunction, and (3) a balancing of the equities in
the movant’s favor (see CPLR 6301; Aetna Ins. Co. v Capasso, 75 NY2d 860, 552 NYS2d 918 [1990]; Dixon v Malouf, 61AD3d630, 875 NYS2d 918 [2d Dept 2009]; Coinmach Corp. vAl/ey Pond Owners Corp., 25 AD3d 642, 808 NYS2d 418 [2d Dept 2006]). The purpose of a preliminary injunction is to maintain the status quo and prevent the dissipation of property that could render a judgment ineffectual (see Dixon v Malouf, supra; Ruiz v Meloney, 26 AD3d 485, 810 NYS2d 216
[2d Dept 2006]). The decision to grant or deny a preliminary injunction rests in the sound discretion
of the Court (see Dixon v Malouf, supra,· Ruiz v Meloney, supra). Further, preliminary injunctive
relief is a drastic remedy that will not be granted unless the movant establishes a clear right to such relief which is plain from the undisputed facts (Blueberries Gourmet v Aris Realty Corp., 25 5 AD2d 348, 680 NYS2d 557 [2d Dept 1998]; see Hoeffner v John F. Frank, Inc., 302 AD2d 428, 756
NYS2d 63 [2d Dept 2000]). Here, the plaintiff has not sufficiently demonstrated his entitlement to injunctive relief pending the determination of the action by showing a likelihood of success on the merits, irreparable injury in the absence of a preliminary injunction, and a balance of the equities in his favor (see CPLR 6301 ). A review of the record indicates that the plaintiff has not shown a likelihood of success on the merits. The Court does not address the merits of the competing claims made by the parties but, instead, notes that there is sufficient competing evidence to call into question the plaintiffs ability to succeed on the merits of his claims. The parties have submitted conflicting documentary evidence as well as conflicting testimony regarding whether the Agreement was voluntarily entered into by the parties, and which party, if any, breached their fiduciary duty to the other first. Given the sharply disputed issues of fact, the plaintiff has failed to establish a clear right to preliminary injunctive relief (see Cooper v Board of White Sands Condominium, 89 AD3d 669, 931 NYS2d 696 [2d Dept 2011); Matter of Advanced Digital Sec. Solutions, Inc. v Samsung Techwin Co., Ltd., 53 AD3d 612, 862 NYS2d 551 [2d Dept 2008]). "