Catalano Gallardo & Petropoulos - Jericho, New York Law Firm

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CG&P Obtains Dismissal of Legal Malpractice and Breach of Fiduciary Duty Claims

Category: Legal Malpractice | Tags: dismissal of legal malpractice claim, real estate

In an action for legal malpractice and breach of fiduciary duty, CG&P’s client was the real estate attorney for a co-defendant in the purchase and subsequent sale of a property. As part of the initial purchase, the co-defendant obtained a loan from the plaintiff, a real estate lender. Unbeknownst to CG&P’s client, following the initial purchase of the property, the co-defendant allegedly committed criminal fraud that caused the plaintiff to lose its security interest in the subject premises, and then defaulted on the loan. Plaintiff brought claims against the co-defendant for fraud and conversion and against CG&P’s client for legal malpractice and breach of fiduciary duty. CG&P moved to dismiss plaintiff’s claims against CG&P’s client, arguing that the plaintiff had retained separate counsel who had the opportunity and ability to protect plaintiff’s rights and that CG&P’s client did not owe plaintiff a duty of care because he was not in privity with plaintiff. The Court agreed with CG&P’s arguments and dismissed the action in its entirety against CG&P’s client. CG&P Partner Gary Petropoulos and Associate William Schleifer were the handling attorneys on the matter. 

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