Morson v. Kreindler & Kreindler, LLP

814 F. Supp. 2d 220, 2011 U.S. Dist. LEXIS 112310, 2011 WL 4526077
CourtDistrict Court, E.D. New York
DecidedSeptember 28, 2011
DocketNo. 09 CV 2994 (DRH)(ARL)
StatusPublished
Cited by6 cases

This text of 814 F. Supp. 2d 220 (Morson v. Kreindler & Kreindler, LLP) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morson v. Kreindler & Kreindler, LLP, 814 F. Supp. 2d 220, 2011 U.S. Dist. LEXIS 112310, 2011 WL 4526077 (E.D.N.Y. 2011).

Opinion

MEMORANDUM & ORDER

HURLEY, Senior District Judge:

Plaintiff brings this diversity action1 sounding in legal malpractice, breach of contract, breach of fiduciary duty, negligent and intentional infliction of emotional distress, and unfair business practices against Kreindler & Kreindler LLP. Now before the Court is defendant’s motion for summary judgment pursuant to Fed. R.Civ.P. 56 as to all claims. For the reasons set forth below, the motion is granted.

BACKGROUND

I. Relevant Facts

Plaintiffs claims arise out of events that occurred during defendant’s legal representation of plaintiff (or “Morson”) and his sister, Vanessa Morson, (collectively, the “Morsons”), who served as the co-administrators of their mother’s estate. The subject representation involved a 1996 case brought in this District alleging wrongful death against the Libyan government for its involvement in the 1988 bombing of Pan American Airlines flight 103 over Lockerbie, Scotland (the “Lockerbie action”).2 See Morson v. The Socialist People’s Libyan Arab Jamahirya, No. 96 CV 2077(TCP) (E.D.N.Y.). In October 2002, a conditional settlement agreement was reached between the parties in that action that relied on the occurrence of three [223]*223“triggering events,” the details of which are not relevant for present purposes. (Statement of Undisputed Material Facts, pursuant to Local Civil Rule 56.1 (“56.1 Stmt.”) ¶¶ 20-21.)

Prior to this conditional settlement, on December 26, 2001, judgment was entered against Morson for approximately $1.7 million in a separate lawsuit in the Southern District of New York. (56.1 Stmt. ¶¶ 24, 27); See Palazzetti Import/Export, Inc. v. Morson, No. 98 CV 722(FM) (S.D.N.Y.) (the “Palazzetti action”). The judgment was later affirmed on appeal at some point in 2002. (56.1 Stmt. ¶ 28.) Kreindler & Kreindler LLP did not represent Morson in that action.

In late 2002, Morson and one Sergio Palazzetti began direct settlement negotiations without the aid of counsel regarding payment of the Palazzetti judgment. (56.1 Stmt. ¶ 34.) During these talks, Palazzetti indicated that he “would be amenable to settle for $500,000 in cash,” as a lump sum, (Deposition of Sergio Palazzetti (“Palazzetti Dep.”) at 58-69, D’s Ex. I), though no final agreement was entered into by the two men at that time. (See Deposition of Gregory Morson (“Morson Dep.”) at 46-47, D’s Ex. G; see also Palazzetti Dep. at 51 (“The only thing I remember is that when we actually sort of agreed on the 500,000 number.”).)

Around that same time, Palazzetti discussed with his attorney, Debra J. Guzov, what Palazzetti had learned primarily through the news media, viz., that Morson was involved in the Lockerbie action, that settlement talks were underway between the parties, and that Morson was potentially entitled to a large payout in that case. (56.1 Stmt. ¶¶ 22, 30; Palazzetti Dep. at 34-36.) Guzov then served Kreindler & Kreindler LLP with a “Restraining Notice,” pursuant to N.Y. CPLR 5222, requesting that the firm complete an attached questionnaire concerning Morsoris current and potential assets. On January 15, 2003, James P. Kreindler (“Kreindler”) completed the questionnaire and returned it to Guzov. (PL’s Ex. 4.) In his response, Kreindler provided the following statement relevant to this suit: “We filed suit arising from the death of Eva I. Morson against Libya in 1996. We have a written settlement agreement which goes into effect when Libya complies with the United Nations requirements. Settlement not less than $5 million nor more than $10 million.” (PL’s Ex. 5.)

Meanwhile, Palazzetti had informed his “trial counsel,” Michael Regan (who had a lien on any judgment in the Palazzetti action), that he had discussed settling the Palazzetti action with Morson for $500,000. According to Palazzetti’s testimony, Regan informed him that he learned from Guzov that the Lockerbie action “would be resolved positively for the Morsons very soon,” and that he should not settle for less than the judgment. (Palazzetti Dep. at 58) Shortly thereafter, Palazzetti communicated to Morson that he would no longer settle the judgment for $500,000. Palazzetti testified that he changed his position because he “was told that [he] could get the whole amount in a fairly short time.” (Palazzetti Dep. at 9, 64.)

The Morsoris eventually recovered $10 million from the Lockerbie action (56.1 Stmt. ¶ 32; D’s Ex. L.), and Palazzetti collected the entire amount of his judgment from Morson, (PL’s Ex. 7).

On January 22, 2003, Morson received a copy of the completed questionnaire mailed to him by Kreindler. (Morson Dep. at 53-55.) Morson immediately called Kreindler to discuss the matter, (id. 54-56) and Kreindler informed him that he was “obligated to answer the questionnaire and that that is what he had done,” (id. at 57). At that time, Morson put two and two together and realized that Kreindler’s re[224]*224sponse “completely derailed [his] negotiations with Mr. Palazzetti.” (Morson Dep. at 58.)

II. Procedural History

Plaintiff originally filed this case in the Suffolk County Superior Court of Massachusetts on January 15, 2009, and defendant timely removed it to the United States District Court for the District of Massachusetts. On July 10, 2009, the Honorable Richard G. Stearns, United States District Judge, transferred the case to this District. (See Docket No. 21.)

DISCUSSION

I. Standard of review

Summary judgment pursuant to Federal Rule of Civil Procedure 56 is only appropriate where admissible evidence in the form of affidavits, deposition transcripts, or other documentation demonstrates both the absence of a genuine issue of material fact and one party’s entitlement to judgment as a matter of law. See Major League Baseball Props., Inc. v. Salvino, Inc., 542 F.3d 290, 309 (2d Cir.2008); Viola v. Philips Med. Sys. of N. Am., 42 F.3d 712, 716 (2d Cir.1994). The relevant governing law in each case determines which facts are material; “only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202, (1986); see SCR Joint Venture L.P. v. Warshawsky, 559 F.3d 133, 137 (2d Cir.2009); Coppola v. Bear Stearns & Co., 499 F.3d 144, 148 (2d Cir.2007). No genuinely triable factual issue exists when the moving party demonstrates, on the basis of the pleadings and submitted evidence, and after drawing all inferences and resolving all ambiguities in favor of the nonmovant, that no rational jury could find in the nonmovant’s favor. See SCR Joint Venture, 559 F.3d at 137; Chertkova v. Conn. Gen. Life Ins. Co.,

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Cite This Page — Counsel Stack

Bluebook (online)
814 F. Supp. 2d 220, 2011 U.S. Dist. LEXIS 112310, 2011 WL 4526077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morson-v-kreindler-kreindler-llp-nyed-2011.