On November 5, 2020 the Appellate Division, First Department affirmed the summary judgment award dismissing a legal malpractice action brought by a wealthy Manhattan developer against a New York City Law Firm. The Law Firm represented the developer in connection with a foreclosure action, arising from a commercial loan the developer procured. This loan was secured by properties in NYC’s Hudson Yards neighborhood, and were also personally guaranteed by the developer. After a protracted foreclosure action, the Plaintiff lost the properties and was ordered to pay $28 million in a deficiency judgment.
The Appellate Division, First Department affirmed the lower court’s findings that the Law Firm’s conduct and advice were reasonable under the circumstances, and that Plaintiff’s claim were inherently speculative in nature and, therefore, subject to dismissal.
If you have any questions about this decision, please contact Andrew S. Kowlowitz.