Bernstein v. Oppenheim & Co.

160 A.D.2d 428, 554 N.Y.S.2d 487, 1990 N.Y. App. Div. LEXIS 4304
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 17, 1990
StatusPublished
Cited by92 cases

This text of 160 A.D.2d 428 (Bernstein v. Oppenheim & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bernstein v. Oppenheim & Co., 160 A.D.2d 428, 554 N.Y.S.2d 487, 1990 N.Y. App. Div. LEXIS 4304 (N.Y. Ct. App. 1990).

Opinion

—Judgment of the Supreme Court, New York County (William J. Davis, J.), entered on or about February 1, 1988, which, inter alia, denied defendants’ respective motions for an order dismissing the complaint in each case, is unanimously modified, on the law, to grant defendants’, Oppenheim & Co., P. C. and Jerry Oppenheim, motion to the extent of dismissing the fourth cause of action and dismissing those allegations with respect to the first cause of action concerning (1) defendants’ failure to move for summary judgment in plaintiff’s cause of action for an accounting in the HOB&B action, (2) defendants’ failure to move for a receiver in that action, (3) defendants’ failure to move to compel compliance with the prior order of the Supreme Court directing payment of plaintiff’s biweekly draw, and further, to grant defendant Parker Chapin Flattau & Klimpl’s motion to dismiss the complaint to the extent of dismissing the second cause of action and dismissing those allegations with respect to the first cause of action concerning [429]*429(1) defendant’s failure to move for summary judgment on plaintiffs cause of action for an accounting, (2) the fact that an associate at defendant rather than the partner who accepted the firm’s retention handled much of the litigation, (3) defendant’s advice to plaintiff to seek an injunction rather than appointment of a receiver, (4) defendant’s failure to move to enforce the payment of plaintiffs biweekly draw, (5) defendant’s failure to obtain a protective order, and otherwise affirmed, without costs or disbursements.

Plaintiffs complaint against defendant law firm Oppenheim & Co., P. C. and its principal is based on an allegation that Oppenheim negligently gave plaintiff erroneous advice with respect to a "retirement agreement” and "settlement package” offered him upon the dissolution of the accounting firm Hoffberg, Oberfest, Burger & Burger (HOB&B), of which plaintiff was a partner. The complaint consists of 115 "paragraphs” which detail plaintiff’s version of the events and state four "causes of action” for negligence, actual fraud, constructive fraud, and violation of Judiciary Law § 487 by willful delay of the lawsuit to generate excessive fees. Although not specifically related .by the complaint to the allegations made therein, the allegations of negligence, fraud and misconduct that can be gleaned from the complaint are as follows:

Plaintiff, through paragraphs numbered 15-19, alleges that defendant Jerry Oppenheim misrepresented his own qualifications as well as the size and abilities of his firm. Paragraphs 44-56 allege that Oppenheim negligently advised plaintiff to commence the lawsuit against the former partners at HOB&B, rather than accept the settlement package, and wrongfully advised him to remove documents and records from the firm. The remainder of the allegations concern plaintiffs dissatisfaction with Oppenheim’s conduct of the lawsuit. Plaintiff alleges that Oppenheim failed to enforce the court’s direction that plaintiff receive a partial draw, failed to inform the plaintiff that the court ordered him to return documents he removed from HOB&B’s offices, and failed to adequately notify plaintiff of, and prepare him for, noticed depositions. Plaintiffs complaint further alleges that Oppenheim failed to take action to place the partnership into receivership or to move for summary judgment on plaintiffs cause of action for an accounting.

Initially, the court did not choose to treat the CPLR 3211 (a) (7) portion of the motion as one for summary judgment. It found that the complaint generally states a cause of action for legal malpractice despite the fact that the underlying dispute [430]*430was settled. A claim for legal malpractice is viable, despite settlement of the underlying action, if it is alleged that settlement of the action was effectively compelled by the mistakes of counsel (see, Cohen v Lipsig, 92 AD2d 536). Plaintiff’s allegations to the effect that Oppenheim improperly advised him to commence the lawsuit against HOB&B rather than accept their original settlement, and that such action occasioned acceptance of a significantly lower settlement by plaintiff, sufficiently allege that settlement of the action was effectively compelled by defendant counsel’s mistakes. In essence, the complaint alleges that the need for the settlement would not have arisen had Oppenheim not wrongfully advised plaintiff to commence the lawsuit in the first place. Thus, settlement of the underlying suit does not compel dismissal.

However, there still remains for resolution the issue of whether the causes of action for legal malpractice are sufficiently stated.

Whether a pleading is sufficient to state a cause of action for legal malpractice may pose a question of law determinable on a motion to dismiss (Rosner v Paley, 65 NY2d 736, 738).

An attorney is liable in a malpractice action if it can be proved that his conduct fell below the ordinary and reasonable skill and knowledge commonly possessed by a member of the profession (Grago v Robertson, 49 AD2d 645, 646). However, an attorney is not held to the rule of infallibility and is not liable for an honest mistake of judgment where the proper course is open to reasonable doubt (supra). Thus, "selection of one among several reasonable courses of action does not constitute malpractice” (Rosner v Paley, supra, at 738). Absent such "reasonable” courses of conduct found as a matter of law, a determination that a course of conduct constitutes malpractice requires findings of fact (Grago v Robertson, supra, at 646). The general rule is that an attorney may be held liable for ignorance of the rules of practice, failure to comply with conditions precedent to suit, or for his neglect to prosecute or defend an action (supra).

Plaintiff’s complaint, viewed liberally in his favor, alleges essentially that Oppenheim’s conduct fell below acceptable standards, i.e., he was negligent in that he misread the retirement agreement as a partnership agreement, erroneously concluded that the partnership was already dissolved as opposed to being in the winding-up stage, and erroneously advised plaintiff to commence a lawsuit rather than accept a lucrative settlement package. There are also further allega[431]*431tions concerning Oppenheim’s failure to properly protect plaintiffs interests and inform him of his obligations during the suit, and allegations that Oppenheim advised plaintiff to engage in what amounted to wrongful conduct, i.e., the removal of records and failure to comply with court directions to return them.

Defendant Oppenheim has submitted affidavits and documents to evidence that plaintiff is less than a cooperative client, has disputed bills presented by three former counsel in this action, and alleged malpractice only after presentation of the bills. Such submissions only raise questions of fact as to whether plaintiffs alleged lack of cooperation caused the alleged conduct of the respective counsel. Thus, the issue of the credibility of witnesses involved in determining whether, inter alia, Oppenheim advised plaintiff to remove records and failed to inform him of the court’s direction to return them, or whether plaintiff himself removed them and failed to heed Oppenheim’s demands that they be produced, is not properly for the court to resolve on a motion to dismiss.

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Cite This Page — Counsel Stack

Bluebook (online)
160 A.D.2d 428, 554 N.Y.S.2d 487, 1990 N.Y. App. Div. LEXIS 4304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernstein-v-oppenheim-co-nyappdiv-1990.