Defense Verdict Affirmed in Complex Legal Malpractice Case

We successfully defended an appeal in a complex series of legal malpractice actions arising out of an $11 million investment in an illegal venture in Brazil. In the initial trial, the plaintiff’s economic loss expert had offered a net opinion in connection with what plaintiff would have earned from the illegal venture in Brazil. We established the plaintiff’s knowledge of that illegality, which had been demonstrated in the previous legal malpractice action. Accordingly, the plaintiff’s expert report was barred in the first legal malpractice action, the doctrine of collateral estoppel applied, and the Appellate Division affirmed the trial court’s order, which barred the expert report in the second legal malpractice action. In addition, the court found that profits derived from the illegal venture are worthless and cannot form the basis for a claim.