What does an Ohio legal malpractice case teach us in New York?  This case illustrates the "but for" aspect of legal malpractice.  While it is not a different burden than showing "proximate cause" in other litigation [we’ll be talking about a 2d Department case in the coming days that illustrates this principal] it is always important.

"Joanne Schneider, 66, and her husband, Alan, 64, of North Royalton, sold at least $60 million worth of promissory notes to 740 investors. They used the money to buy an apartment complex, a pair of wineries, a machine shop and more than 20 rental properties.

Fornshell liquidated about $20 million of the properties, including the couple’s failed Cornerstone development on 34 acres in Parma Heights.

The Schneiders are scheduled to stand trial May 19 in Common Pleas Court on charges of engaging in a pattern of corrupt activity, theft, money laundering and conspiracy.

Judge David Matia threw out the legal malpractice lawsuit after determining Roetzel & Andress had sufficiently warned the Schneiders of the consequences of defying the state’s orders to stop selling promissory notes.

"The Schneiders created the implosion of the Cornerstone project through their own allegedly criminal conduct," Matia wrote in his opinion. "The Schneiders . . . defied the Ohio Division of Securities’ explicit order to stop selling promissory notes . . . despite legal advice from Roetzel & Andress to the contrary."

Joanne Schneider was more aware of her dire financial situation than her lawyers, and bore more responsibility for her failure than anyone else, Matia said.

The plaintiffs argued that Roetzel & Andress could have prevented the collapse, but ignored the Schneiders’ questionable fund-raising activities in order to preserve the firm’s lucrative business arrangement. "