Alrose Steinway, LLC v Jaspan Schlesinger, LLP  2021 NY Slip Op 30619(U) March 5, 2021Supreme Court, New York County Docket Number: 151482/2017 Judge: Andrea Masley is a long, reasoned and detailed discussion of a legal malpractice claim based upon a projection of future commercial events.  it is too long to effectively excerpt it for a blog entry.  The take-away from this case is that a “future profits” or projection of future losses based upon current events is tortious, twisted and requires many assumptions or (less positively) “speculations.”

“Defendants have also demonstrated that plaintiff’s theory of proximate cause is couched in gross speculations on future events. Defendants argue that plaintiff’s claims are wholly speculative and depend on too many uncertainties. Defendants point to the uncertainty associated with the requirement that plaintiff would be in compliance with all of its obligations under the ground lease before it could finally exercise the option in 2024. In support, defendants rely on Section 30.01 of the lease which states “[p]rovided that Tenant is not in material default beyond any applicable grace period … at the time of the exercise of this option to purchase, the Landlord grants to the Tenant … at any time during the last year of the term of this lease, the right to purchase the entire Premises leased hereunder.” (NYSCEF 156, Ground Lease§ 30.01 [emphasis added].)

Because plaintiff’s theory of proximate cause is based on the assumption that it would not have been in material default four years from now, and that it would have the funds to exercise the option four years from now, defendants maintain that the theory is ‘couched in terms of gross speculations on future events.”‘ (Phillips-Smith Specialty Retail Group II, 265 AD2d at 210.) Therefore, defendants posit that the theory is insufficient as a matter of law to establish proximate cause. (Id)
Defendants also maintain that plaintiff’s damages are speculative because whether plaintiff would be able to purchase the Premises four years from now in the amount of $11,000,000 is, by definition, speculation. Lastly, defendants contend that the damages as alleged are not clearly calculable because, although plaintiff orchestrated the purchase of the Premises four years ago for $14,500,000, it is unclear what, if any, purchase price would exist in 2024. (Gallet, Dreyer & Berkey, LLP, 141 AD3d at 406.) “