DaSilva v. Suozzi, English, Cianciulli & Peirez, P. C.

165 Misc. 2d 792, 629 N.Y.S.2d 952, 1995 N.Y. Misc. LEXIS 331
New York Supreme Court·Decided June 5, 1995·Published·Cited by 2 cases

Opinion

OPINION OF THE COURT

David Goldstein, J.

In this legal malpractice action, defendants Albanese, Albanese & Fiore, a partnership, and Albanese, Albanese & Fiore, P. C., seek an order granting summary judgment dismissing the complaint and, in the alternative, seek partial summary judgment dismissing plaintiff’s claim for lost profits. Codefendants, Suozzi, English, Cianciulli & Peirez, P. C., and Suozzi, English & Cianciulli, P. C., cross-move for summary judgment dismissing the complaint and, in the alternative, for partial summary judgment, dismissing plaintiff’s claim for lost profits. Codefendant Kate Shapiro, as executrix of the estate of J. Irwin Shapiro, deceased, also cross-moves for summary judgment dismissing the complaint and, in the alternative, for partial summary judgment, dismissing plaintiff’s claim for lost profits.

[794] This action for legal malpractice arises out of defendants’ representation of plaintiff, Leon R. DaSilva, in two underlying actions for specific performance of a binder agreement for the sale of an apartment building.

In 1978, plaintiff had executed a binder agreement to purchase an apartment building for the sum of $641,000, from Antonio Musso and Chris Partridge. When the owners reneged on the binder agreement, Mr. DaSilva’s then counsel filed a notice of pendency pursuant to CPLR article 65, and commenced an action in the Supreme Court, Queens County, for specific performance and, in the alternative, damages. The Supreme Court (Graci, J.) after a nonjury trial, by a judgment dated October 25, 1979, granted plaintiff specific performance of the binder agreement. The sellers appealed to the Appellate Division, Second Department, which, on June 16, 1980, reversed and dismissed the complaint. (Da Silva v Musso, 76 AD2d 879.)

Thereafter, DaSilva promptly filed an appeal with the Court of Appeals on July 23, 1980, but did not obtain a stay of the Appellate Division order, pursuant to CPLR 5519. On November 7, 1980, DaSilva executed a consent to change attorneys, whereby Suozzi, English, Cianciulli & Peirez, P. C. (hereinafter Suozzi, English) was substituted as counsel. Defendant J. Irwin Shapiro, now deceased, was of counsel to Suozzi, English, and is alleged to have represented plaintiff on behalf of the law firm. Following substitution of counsel, the sellers sought to cancel the notice of pendency pursuant to CPLR 6514 (a). The Supreme Court (Buschmann, J.), in a decision dated February 10, 1981, and order dated February 27, 1981, granted the sellers’ motion to cancel the notice of pendency, as plaintiff had not obtained a stay of the Appellate Division’s order of June 10, 1980. This order was served on plaintiff, together with notice of entry on March 3, 1981, and plaintiff never sought to reargue or appeal said order. The sellers, Musso and Partridge, shortly thereafter, contracted to sell the property to Ross Howard Realty Corp., for the sum of $850,000 which, in turn, assigned the contract to Uzi Realty Corp., as agent for Sun Place Realty Corp., for the sum of $1,005,000. On May 19, 1981, DaSilva executed a consent to change attorneys, whereby defendants Albanese, Albanese & Fiore (hereinafter AA&F) was substituted as counsel for Suozzi, English. AA&F promptly notified the prospective purchasers of the pending appeal. Nonetheless, the transaction was consummated, and the property was conveyed to Sun Place [795] Realty on September 1, 1981, some nine days before the plaintiffs appeal was argued. The argument went forward as scheduled and, on October 20, 1981, the Court of Appeals issued a decision and order reversing the Appellate Division and reinstating the trial court’s judgment which had awarded specific performance. (Da Silva v Musso, 53 NY2d 543.) The Court of Appeals specifically noted that "[i]t was error also to dismiss the complaint and thus, in effect, by foreclosing plaintiffs recovery of damages (demanded as an alternative remedy in the complaint), to grant defendants rescission” (supra, at 551). The foregoing proceedings shall be referred to hereinafter as Da Silva I.

Mr. DaSilva thereafter commenced a second action (Da Silva II) which sought, inter alla, to declare the conveyance to Sun Realty void, and to award him specific performance of the binder agreement. The Supreme Court (Kassoff, J.), in a memorandum decision, dated November 29, 1985, and judgment entered subsequent thereto, cancelled the deed transferring the property to Sun Realty, granting plaintiff specific performance. Plaintiffs claim for restitution was denied, as plaintiff did not seek such relief in the action for specific performance, and had not been awarded damages by the Court of Appeals. The Appellate Division, in a decision and order dated September 11, 1989 modified the judgment, and otherwise affirmed the cancellation of the deed and the award of specific performance. (Da Silva v Musso, 150 AD2d 73.) Both the Appellate Division and the trial court had found that, as the subsequent purchaser had actual knowledge of the then pending litigation, it was not a bona fide purchaser for value, even though the notice of pendency had been cancelled prior to the purchaser’s negotiations with the vendor for the sale of the property. In interpreting the provision of CPLR 6514 (a), therefore, both the appellate and trial courts concluded that a purchaser who buys real property with actual knowledge of the pendency of an appeal in an action for specific performance takes title subject to the right of the appellant as ultimately determined by the appellate court. Thus, the Appellate Division rejected plaintiffs claim for an accounting, as he had previously obtained such relief.

In early 1988, plaintiff sought to enforce the November 19, 1981 judgment of remittitur, and the October 19, 1979 judgment of specific performance. The Supreme Court, in an order dated May 5, 1988, directed specific performance, and directed that the sellers account to plaintiff for the net rents and [796] profits from October 15, 1978 to September 1, 1981, and the net proceeds of the sale to Sun Place Realty on September 1, 1981. The Supreme Court order was affirmed by the Appellate Division (Da Silva v Musso, 153 AD2d 836) and no further appeal was taken.

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DaSilva v. Suozzi, English, Cianciulli & Peirez, P. C., 165 Misc. 2d 792, 629 N.Y.S.2d 952, 1995 N.Y. Misc. LEXIS 331 (N.Y. Super. Ct. 1995).

165 Misc. 2d 792 (DaSilva v. Suozzi, English, Cianciulli & Peirez, P. C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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