Bua v. Purcell & Ingrao, P.C.

99 A.D.3d 843, 952 N.Y.2d 592
Appellate Division of the Supreme Court of the State of New York·Decided October 17, 2012·Published·Cited by 55 cases

Opinion

The plaintiff commenced this action to recover damages allegedly sustained as a result of the defendants’ legal malpractice. The amended complaint alleged that the plaintiff retained the defendants to represent and advise him in connection with the sale of certain real property. The plaintiff entered into a contract of sale with a buyer, who tendered a deposit to be held in escrow. The amended complaint further alleged that, prior to the closing date, the buyer’s attorney attempted to terminate the contract of sale because the buyer was unable to obtain financing for the purchase. The defendant Joseph A. Ingrao informed the plaintiff that the buyer wished to cancel the contract of sale, and the plaintiff agreed to cancel the contract and return the deposit.

The amended complaint stated that Ingrao sent the buyer’s attorney a letter “purporting to terminate” the contract of sale and returning the deposit. More than seven months later, however, the buyer attempted to revive the contract of sale and purchase the property under its terms. The plaintiff refused, maintaining that the contract had been terminated. The buyer subsequently commenced an action against the plaintiff for specific performance of the contract of sale and filed a notice of pendency. In that action, the plaintiff argued, inter alia, that the contract of sale, had been terminated when the deposit was [844]*844returned. The plaintiff also commenced a holdover proceeding. The plaintiff ultimately prevailed in the specific performance action.

The amended complaint asserted that the defendants committed malpractice by failing to “obtain a clear and unambiguous termination of the [contract of sale] after [the buyer’s] attorneys advised Ingrao that she wished to terminate the [contract of sale].” The amended complaint listed various things that the plaintiff claimed the defendants “should have done” in order to accomplish a “clear and unambiguous” termination of the contract of sale.

The amended complaint alleged that, as a result of the defendants’ malpractice, the plaintiff sustained damages in the form of, inter alia, legal fees and costs incurred in the specific performance action and the holdover proceeding. The plaintiff also asserted that his damages included the loss of rental income, the loss of value to the property, and the loss of profits that would have been realized if he had been able to sell the property free of the notice of pendency that was filed in connection with the action for specific performance.

The defendants moved to dismiss the amended complaint pursuant to CPLR 3211 (a) (1) and (7), submitting documentary evidence in support of their motion. The defendants contended that the plaintiff should be judicially estopped from asserting the malpractice cause of action since it was premised on a position inconsistent with a position he took in the specific performance action. The defendants also contended that the amended complaint failed to state a cause of action to recover damages for legal malpractice.

The plaintiff opposed the motion and cross-moved to consolidate this action with an action commenced by the defendants against the plaintiff to recover unpaid legal fees. The Supreme Court granted the defendants’ motion to dismiss the amended complaint on the ground that it was barred by the doctrine of judicial estoppel and denied, as academic, the plaintiffs cross motion. We affirm the Supreme Court’s order, but on grounds different from those relied upon by the Supreme Court (see South Point, Inc. v Redman, 94 AD3d 1086, 1087 [2012]; Matter of Long Is. Pine Barrens Socy., Inc. v County of Suffolk, 55 AD3d 610, 611-612 [2008]; Goldin v Engineers Country Club, 54 AD3d 658, 659 [2008]; Garcha v City of Beacon, 39 AD3d 587, 588 [2007]; Green v Conciatori, 26 AD3d 410, 410-411 [2006]; see also Menorah Nursing Home v Zukov, 153 AD2d 13, 19 [1989]).

A motion to dismiss a complaint pursuant to CPLR 3211 (a) [845]*845(1) may be granted only if the documentary evidence submitted by the moving party utterly refutes the factual allegations of the complaint and conclusively establishes a defense to the claims as a matter of law (see Goshen v Mutual Life Ins. Co. of N.Y., 98 NY2d 314, 326 [2002]). On a motion to dismiss a complaint pursuant to CPLR 3211 (a) (7) for failure to state a cause of action, the court must accept the facts alleged in the pleading as true, accord the plaintiff the benefit of every possible inference, and determine only whether the facts as alleged fit within any cognizable legal theory (see Goshen v Mutual Life Ins. Co. of N.Y., 98 NY2d at 326; Leon v Martinez, 84 NY2d 83, 87 [1994]). Where a party offers evidentiary proof on a motion pursuant to CPLR 3211 (a) (7), and such proof is considered but the motion has not been converted to one for summary judgment, “the criterion is whether the proponent of the pleading has a cause of action, not whether he [or she] has stated one, and, unless it has been shown that a material fact as claimed by the pleader to be one is not a fact at all and unless it can be said that no significant dispute exists regarding it . . . dismissal should not eventuate” (Guggenheimer v Ginzburg, 43 NY2d 268, 275 [1977]; see Jannetti v Whelan, 97 AD3d 797 [2012]).

In an action to recover damages for legal malpractice, a plaintiff must demonstrate that the attorney failed to exercise the ordinary reasonable skill and knowledge commonly possessed by a member of the legal profession and that the attorney’s breach of this duty proximately caused the plaintiff to sustain actual and ascertainable damages (see Rudolf v Shayne, Dachs, Stanisci, Corker & Sauer, 8 NY3d 438, 442 [2007]; Bells v Foster, 83 AD3d 876, 877 [2011]).

Here, the amended complaint alleges, and the parties do not dispute, that the buyer attempted to terminate the contract of sale prior to the closing date. As the plaintiff argued in the action against him for specific performance, he considered this attempted termination an anticipatory repudiation of the contract (see D’Abreau v Smith, 240 AD2d 616, 617 [1997]; cf. Rachmani Corp. v 9 E. 96th St. Apt. Corp., 211 AD2d 262, 268 [1995]). Under such circumstances, the plaintiff could immediately elect to treat the repudiation as a breach and rescind the contract, or await the expiration of the time for the buyer’s performance and commence an action thereafter (see Smith v Tenshore Realty, Ltd., 31 AD3d 741, 742 [2006]; Velazquez v Equity LLC, 28 AD3d 473, 474-475 [2006]; see also, 23 Richard A. Lord, Williston on Contracts § 63:33 at 559 [4th ed]).

The amended complaint stated that Ingrao advised the plaintiff of the buyer’s attempted termination of the contract [846]*846and that the plaintiff agreed to rescind the contract and return the buyer’s deposit. Ingrao promptly notified the buyer of the cancellation of the contract of sale and returned the deposit and tendered a check for the escrow interest.

The amended complaint does not explicitly assert that the defendants committed legal malpractice by their failure to effect a legally valid termination of the contract of sale. Indeed, on this appeal, the plaintiff “concedes that the [contract of sale] was legally terminated upon Ingrao’s return of the [d]eposit.”

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Bua v. Purcell & Ingrao, P.C., 99 A.D.3d 843, 952 N.Y.2d 592 (N.Y. Ct. App. 2012).

99 A.D.3d 843 (Bua v. Purcell & Ingrao, P.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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