Decision Affirmed in Decade-Long Legal Malpractice Case

We were successful at the trial and appellate levels in a high-profile legal malpractice action. The Appellate Division’s decision came after a decade of litigation in various courts stemming from a judgment a multinational conglomerate obtained against the plaintiff and his partners in which litigation ensued over debt collection. The plaintiffs alleged the attorneys committed fraud and misrepresentation that led to the plaintiffs’ damages, which they claimed were well in excess of $10 million. We argued that the assignment agreement actually reduced the amount owed to the corporation and asked the court to dismiss the case, arguing that our client was protected by legal privilege, the statute of limitations had passed, and it had no legal duty to the plaintiff. The trial court agreed to dismiss the case, finding that the plaintiff’s claims were not supported by evidence. On appeal, the court upheld the decision, rejecting the plaintiff’s arguments. The Appellate Division found that our clients owed no duty to the plaintiff-debtors as non-clients since the attorneys’ alleged misrepresentations were made during adversarial litigation and, thus, were not intended to induce reasonable reliance by a specific non-client. This decision is extremely important to the trial bar and provides attorneys with a level of protection and immunity in connection with statements and arguments they make as adversaries in litigation.