Plaintiff makes a loan using an attorney.  The attorney is hired to make sure the loan is collateralized and if not paid, there will be a security interest in other property.  The law firm fails to file the correct lien papers, and the loan is lost.  While this might be legal malpractice, is it also a breach of contract or a breach of fiduciary duty.  Are damages which seek disgorgement of legal fees different from damages which seek the amount of the lost loans?

In Genesis Merchant Partners, LP v Gilbride, Tusa, Last & Spellane LLC   2015 NY Slip Op 31080(U)   June 16, 2015  Supreme Court, New York County  Docket Number: 653145/2014,   Judge Nancy M. Bannon did not think so.

“Gilbride further contends that Genesis’ second cause of action for breach of contract, third cause of action for negligence, fourth cause of action for disgorgement, and fifth cause of action for breach of fiduciary duty are merely duplicative of the cause of action for legal malpractice as to all three loans involved in this action. The court notes that, had the legal malpractice cause of action been dismissed as time-barred, these causes of action would have been dismissed as well pursuant to CPLR 214(6). See Johnson v Proskauer Rose LLP, -AD3d-, 2015 WL 1932165 (1st Dept. April 30, 2015). They are nonetheless subject to dismissal, as they are duplicative of that cause of action. “The key to determining whether a claim is duplicative of one for malpractice is discerning the essence of the each claim.” Johnson v Proskauer Rose LLP, supra at *5. These causes of action are essentially identical to the malpractice claim in that they arose from the same facts and do not allege distinct damages. The claims are not “sufficiently distinct from one another” to withstand a motion to dismiss. kt_; see Matter of R.M. Kliment & Frances Halsband. Architects [McKinsey & Co .. lnc.J, 3 NY3d 538 (2004). Indeed, here, Genesis’ causes of action for breach of contract, negligence, and breach of fiduciary duty are predicated on the same alleged conduct giving rise to its legal malpractice cause of action. Genesis does not allege any facts independent of those alleged in connection with the legal malpractice cause of action which would support these causes of action. See Schwartz v Leaf. Salzman. Manganelli. Pfiel. & Tendler. LLP, 123 AD3d 901 (2″d Dept. 2014); lnkine Pharmaceutical Company. Inc. v Coleman, 305 AD2d 151 (1st Dept. 2003); Mecca v Shang, 258 AD2d 569 (2″d Dept. 1999). Additionally, Genesis’ cause of action for disgorgement is, essentially, a claim for monetary damages based on Gilbride’s alleged malpractice and, thus, is duplicative of that cause of action. See Betz v Blatt, 116 AD3d 813 (2″d Dept. 2014); Access Point Medical. LLC v Mandell, 106 AD3d 40 (1st Dept. 2013); Thus, Genesis’ second through fifth causes of action for breach of contract, negligence, disgorgement, and breach of fiduciary duty are dismissed. See Schwartz v Leaf. Salzman. Manganelli. Pfiel. & Tendler. LLP, supra; Betz v Blatt, supra; lnkine Pharmaceutical Company. Inc. v Coleman, supra. “

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Andrew Lavoott Bluestone

Andrew Lavoott Bluestone has been an attorney for 40 years, with a career that spans criminal prosecution, civil litigation and appellate litigation. Mr. Bluestone became an Assistant District Attorney in Kings County in 1978, entered private practice in 1984 and in 1989 opened…

Andrew Lavoott Bluestone has been an attorney for 40 years, with a career that spans criminal prosecution, civil litigation and appellate litigation. Mr. Bluestone became an Assistant District Attorney in Kings County in 1978, entered private practice in 1984 and in 1989 opened his private law office and took his first legal malpractice case.

Since 1989, Bluestone has become a leader in the New York Plaintiff’s Legal Malpractice bar, handling a wide array of plaintiff’s legal malpractice cases arising from catastrophic personal injury, contracts, patents, commercial litigation, securities, matrimonial and custody issues, medical malpractice, insurance, product liability, real estate, landlord-tenant, foreclosures and has defended attorneys in a limited number of legal malpractice cases.

Bluestone also took an academic role in field, publishing the New York Attorney Malpractice Report from 2002-2004.  He started the “New York Attorney Malpractice Blog” in 2004, where he has published more than 4500 entries.

Mr. Bluestone has written 38 scholarly peer-reviewed articles concerning legal malpractice, many in the Outside Counsel column of the New York Law Journal. He has appeared as an Expert witness in multiple legal malpractice litigations.

Mr. Bluestone is an adjunct professor of law at St. John’s University College of Law, teaching Legal Malpractice.  Mr. Bluestone has argued legal malpractice cases in the Second Circuit, in the New York State Court of Appeals, each of the four New York Appellate Divisions, in all four of  the U.S. District Courts of New York and in Supreme Courts all over the state.  He has also been admitted pro haec vice in the states of Connecticut, New Jersey and Florida and was formally admitted to the US District Court of Connecticut and to its Bankruptcy Court all for legal malpractice matters. He has been retained by U.S. Trustees in legal malpractice cases from Bankruptcy Courts, and has represented municipalities, insurance companies, hedge funds, communications companies and international manufacturing firms. Mr. Bluestone regularly lectures in CLEs on legal malpractice.

Based upon his professional experience Bluestone was named a Diplomate and was Board Certified by the American Board of Professional Liability Attorneys in 2008 in Legal Malpractice. He remains Board Certified.  He was admitted to The Best Lawyers in America from 2012-2019.  He has been featured in Who’s Who in Law since 1993.

In the last years, Mr. Bluestone has been featured for two particularly noteworthy legal malpractice cases.  The first was a settlement of an $11.9 million dollar default legal malpractice case of Yeo v. Kasowitz, Benson, Torres & Friedman which was reported in the NYLJ on August 15, 2016. Most recently, Mr. Bluestone obtained a rare plaintiff’s verdict in a legal malpractice case on behalf of the City of White Plains v. Joseph Maria, reported in the NYLJ on February 14, 2017. It was the sole legal malpractice jury verdict in the State of New York for 2017.

Bluestone has been at the forefront of the development of legal malpractice principles and has contributed case law decisions, writing and lecturing which have been recognized by his peers.  He is regularly mentioned in academic writing, and his past cases are often cited in current legal malpractice decisions. He is recognized for his ample writings on Judiciary Law § 487, a 850 year old statute deriving from England which relates to attorney deceit.