FKB’s Andrew Jones and Benjamin Oxenburg obtained a pre-answer dismissal from New York County Supreme Court on behalf of its client, a boutique real estate and litigation law firm.  The plaintiff, a sophisticated and experienced real estate investor and developer, agreed to loan $5 Million to three co-investors in exchange for various interests in two residential real estate development projects in Soho and Greenwich Village.  Two of the co-investors subsequently embezzled the loan proceeds and all three defaulted on their loan obligations to plaintiff.  After FKB’s client obtained judgments against the co-investors in New York and California, plaintiff instituted an action alleging that the client’s advising and structuring of the transactions resulted in the loss of plaintiff’s investments.

Hon. Barbara Jaffe, J.S.C. granted FKB’s motion to dismiss in its entirety, ruling that plaintiff’s allegations of actual damages were utterly refuted by documentary evidence showing that the client successfully obtained valid and enforceable judgments on behalf of plaintiff.  Justice Jaffe further ruled that this evidence also extinguished plaintiff’s claims for breach of fiduciary duty and unjust enrichment, which in any event were duplicative of the legal malpractice claim.         

If you have any questions about this decision, or the defense of attorneys in general, please contact Andrew Jones and Benjamin Oxenburg.