Plaintiff is a corporation,and it files a Chapter 11 petition. It then brings a traditional legal malpractice action in state court. Plaintiff commences the action against Defendant DLA Piper LLP and then itself removes the case to US District Court. The matter then is transferred to Bankruptcy Court. How does this play out? Why does plaintiff
Legal Malpractice News
How Often is Bankruptcy an After Effect of Legal Malpractice?
There are a large number of cases in which plaintiff loses the capacity to sue a prior attorney in legal malpractice because in the interim, plaintiff has filed for bankruptcy. Any claim, even inchoate, that a petitioner in bankruptcy has at the time of filing a Chapter 7, becomes part of the bankrupt’s estate and hence…
Reject a Client and Avoid Legal Malpractice
This case sheds a light on how personal injury firms get, evaluate and reject clients. Likely unknown to the public, PI and Med Mal firms often "take" a case by having a Blumberg retainer signed which might have the language "for investigation" or "for medical records" or some other modifier. The attorneys then spend some…
A Highly Technical Partial Dismissal in Legal Malpractice
Large scale legal malpractice cases (greater than $ 10 Million dollars) often engender highly technical motion practice. Here, in Ableco Fin. LLC v Hilson ;2011 NY Slip Op 00566 ;Decided on February 1, 2011 ;Appellate Division, First Department we see the aftermath of a bankruptcy – reorganization – take over gone bad. The figures…
When is a Release Really Good?
Transactional attorney engaged in lending deals gets a release from the parties. Of course, litigation between the parties ensues, and the attorneys get roped in. When and under what circumstances is the release good? Does there have to be consideration from the attorney to the parties? Must it be a real exchange of $$ ?…
A Previous Appeal, A Retaining Lien and Dismissal in Legal Malpractice
Here is a short, pungent and dispositive decision by the Appellate Division, Second Department in Zito v Fischbein Badillo Wagner Harding ; 2011 NY Slip Op 00285 ; Decided on January 20, 2011 Appellate Division, First Department.
We’ve seen a "charging lien" utilized as res judicata against a subsequent legal malpractice case, but the…
What is the Statute of Limitiations in Legal Malpractice?
The question of whether there is a different statute of limitations for fraud or breach of contact when dealing with attorneys often arises. After all, it is a 6 year statute everywhere, is it not? The short answer is "no" and the longer answer is that the legislature gave attorneys special protection. After the Court…
How Much Can You Get Away With in Legal Malpractice
This disciplinary proceedings makes for a shocking read. This attorney went from a successful practice, to a legal malpractice claim, to a huge judgment against him in Federal Court, to the twists and turns which led to incarceration. Why? Because of a lie in a resume. in Matter of Dorfman ;2011 NY Slip Op…
Twice Reversed and Continuing in Legal Malpractice
Cruciata v Mainiero ;2011 NY Slip Op 50066(U) ;Decided on January 14, 2011 ;Supreme Court, New York County ;James, J. is a very interesting example of the premise that if you keep showing up and keep at it, a better result may very well follow. In this case, a matrimonial action, plaintiff was awarded a…
The End of a Very Sad Legal Malpractice Story
Client is misdiagnosed with breast cancer. Typically the misdiagnosis is that the doctor missed the cancer. Here it was the opposite. The doctor is alleged to have found a false positive diagnosis. Ms. Kremen underwent unnecessary bilateral mastectomy. There was no cancer.
She hired the Benedict Morelli firm to sue. The case was eventually…