Settlements

Published on: September 10, 2024

New York Court Affirms Dismissal of Case Alleging Settlement Malpractice

One common complaint against an attorney is that the attorney did not negotiate an adequate settlement of the underlying case. In this fact pattern, Plaintiff hired Lawyer 1 to file a personal injury action. Plaintiff replaced Lawyer 1 with Lawyer 2 who (a) settled the personal injury case, and (b) brought and settled a claim against Lawyer 1 for legal malpractice. Plaintiff then sued Lawyer 2 for negligently advising him to settle the malpractice case against Lawyer 1.

So, one personal injury case spawned two legal malpractice lawsuits. The trial court dismissed the legal malpractice case against Lawyer 2 on the ground that the plaintiff’s allegations were conclusory. Plaintiff failed to allege an error by Lawyer 2 that would have caused the allegedly inadequate settlement. The key paragraph of this opinion is quoted below:

Here, plaintiff’s allegation that Bellinson’s advice denied him the full value of his malpractice suit against Pepperman was “purely conclusory” (Murray Hill Invs. v Parker Chapin Flattau & Klimpl, LLP, 305 AD2d 228, 229 [1st Dept 2003]). Plaintiff’s complaint lacked any factual allegations to support his conclusion that he “would have succeeded” in achieving a better result in the personal injury action but for Pepperman’s negligence, and that he would have proved legal malpractice against Pepperman but for defendants’ advice (Pellegrino, 291 AD2d at 63). Additionally, plaintiff’s damages were speculative as he provided no basis for his calculations (see id.; Zarin v Reid & Priest, 184 AD2d 385, 387-388 [1st Dept 1992]).

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Published on: December 14, 2022

Settlement Regret Is Not Sufficient To Establish Legal Malpractice

By The Clinton Law Firm

In Bei Yang v. Pagan Law Firm, PC, 2022 NY Slip Op 31007(U) Supreme Court, New York County, the plaintiff hired the lawyer for a medical malpractice case. That case settled for $1.3 million. Plaintiff then sued the lawyer for legal malpractice. Plaintiff alleged that the lawyer coerced him into accepting the settlement. The court dismissed the legal malpractice action because the plaintiff could not prove he would have recovered more than $1.3 million had he gone to trial.

The reasoning:

“Plaintiff’s own expert does not dispute Mr. Zuller’s opinion that the action would be risky to try and that a trial may have resulted in a defense verdict or a verdict lower than the settlement amount. In his affirmation, Mr. Bower states:

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Published on: November 30, 2020

Illinois Court Holds That Plaintiff Should Have Sued Within Two Years of Original Settlement

By The Clinton Law Firm

This case, County Line Nurseries & Landscaping, Inc. v. Kenney, 2020 IL App (1st) 200615, presents a recurring issue: when does the statute of limitations for legal malpractice begin to run? Illinois has a two-year statute of limitations for legal malpractice. The hard question is figuring out when the statute begins to run.

County Line hired James Kenney to represent it in a contract lawsuit. The parties allegedly entered into a settlement of that lawsuit on September 23, 2014. County Line appealed and alleged that it had not entered into a binding settlement. The Appellate Court disagreed and affirmed the settlement.

On October 26, 2016, County Line filed suit against Kenney. Kenney moved to dismiss on the ground that the two-year statute barred the claim, which, in his view, had arisen on September 23, 2014. County Line argued that Kenney had fraudulently concealed the disputed settlement agreement from the client and that, therefore, the claim had not arisen on September 23, 2014. The trial court dismissed the case and the appellate court affirmed the dismissal of the malpractice lawsuit.

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Published on: September 2, 2017

Court Dismisses Legal Malpractice Case Where Plaintiff Settled Underlying Case

By The Clinton Law Firm

The underlying case was a personal injury case. The plaintiff hired a lawyer to represent her in that case and the lawyer obtained a settlement of the lawsuit that the plaintiff accepted. Despite accepting the settlement, the plaintiff sued for legal malpractice. The trial court dismissed the lawsuit and the appellate court affirmed. The fatal flaw with the case was that the plaintiff did not allege how the lawyer breached any professional duty to the plaintiff.

Source: Tarrant v. Ramunno, Del: Superior Court 2017 – Google Scholar

Published on: August 4, 2017

What Happens if you settle the underlying case?

By The Clinton Law Firm

One of the more vexing issues in the area of legal malpractice is what happens when the plaintiff settles the underlying case. In most states, the plaintiff would have to prove that but for the negligence of the defendant attorney, he would have obtained a better financial result in the underlying case. North Carolina, however, holds that the decision to settle the underlying case gives the negligent lawyer a complete defense to the legal malpractice action. This is an unpublished decision, but it is worth reviewing because it illustrates how the decision to settle the underlying case protects negligent attorneys.

The plaintiff alleged that the lawyers failed to properly serve a breach of contract lawsuit. The negligence alleged, if true, is fairly shocking:

On 5 May 2006, the Horne defendants filed a complaint against the Hill defendants in Pitt County Superior Court alleging breach of contract. However, the Horne defendants never served the Hill defendants with a summons or a copy of the complaint, the action was discontinued, and plaintiff was never informed about the status of the action. When plaintiff emailed the Horne defendants on 23 October 2006 to inquire about its status, defendant Horne II responded:

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Published on: April 24, 2017

New Jersey Court Reverses Dismissal of Legal Malpractice Case That Arose out of Medical Malpractice Case

By The Clinton Law Firm

This unpublished opinion resolves an appeal in a legal malpractice case. The plaintiff sued his lawyer despite the fact that the lawyer settled the underlying case (a medical malpractice case) for $1.5 million.

The Defendant attorney moved to dismiss the case on the ground that the plaintiff was judicially estopped from proceeding because he consented to the settlement of the underlying case. The alleged malpractice was the lawyer’s alleged coercion of an expert witness (a medical doctor) into providing an opinion on surgical issues (and not informed consent). The trial court dismissed the case on estoppel grounds reasoning that because plaintiff had approved the settlement, he could not sue for legal malpractice.

The Appellate Court reversed. It held that it was premature to dismiss the case without conducting discovery and without holding a hearing. The key part of the opinion is quoted below:

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