Resnick v Abelow  2016 NY Slip Op 32197(U)  October 26, 2016  Supreme Court, New York County  Docket Number: 654313/2015  Judge: Eileen A. Rakower is the very rare legal malpractice case that starts off with a request for a default judgment.  Typically attorneys have malpractice insurance which mitigates against defaults.  Here, as almost always, something has befallen the attorney; death, disability or disbarment.  Plaintiff hired the attorney, the attorney suggested that she invest in a restaurant, $ 300,000 changes hands, the attorney id disbarred for the inability to defend financial improprieties and she sues.

“In addition to seeking a judgment against Mr. Abelow for $350,000, “representing the amount of the ‘investment,’ plus interest and costs, due to his fraud, fraudulent inducement, conversion of [her] money and breach of fiduciary duty,” Resnick is also seeking a judgment in the amount of $236,000.00, which would represent the return of the legal fees she paid to Mr. Abel ow. Resnick states that “Mr. Abel ow never provided [her] with bills that described his legal services, only a statement of hours allegedly spent on [her] case” which “contain no descriptions of services rendered.” Resnick states, “I believe that I was grossly overcharged by Mr. Abelow and that his services constituted malpractice, but for the purposes of this motion I am seeking to recover only the monies paid to him without any regard for the immense damages that I suffered from the monies paid to him without any regard for the immense damages that I suffered as a result of his negligent lawyering and the loss of custody of my son.” Resnick is also asking for a judgment to be rendered in the amount of $586,000.000 against defendant, 1683 Hospitality Group, Inc., “a business associated with Mr. Abelow.” As for the basis to hold 1683 Hospitality Group liable, Resnik states: I believe this business held the monies he defrauded me into giving him for ‘investment’ into the restaurant. I have been advised by my attorney that the corporate records for the New York Secretary of State reflect that this business has the same address as Mr. Abel ow’ s address. A social media business site, Linkedin.com, had this business same [sic] associated with Mr. Abelow. I believe this entity received my money after it was paid to Mr. Abelow. CPLR § 3215 provides, in relevant part: “On any application for judgment by default, the applicant shall file proof … of the facts constituting the claim, the default and the amount due by affidavit made by the party.” (CPLR § 3215[f]). Defendants have not answered or otherwise responded to the complaint, or appeared in opposition to this motion. Plaintiffs motion for default judgment is granted as against Defendants on the issue of liability. However, the statement of amounts due extend beyond funds issued for investment and legal fees and are not supported by Plaintiffs statements alone. Plaintiff must demonstrate her damages at an inquest. ”

Will any of this ever be recovered?  Stay tuned.