On December 23, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Bessemer Trust Co., N.A. v. Hart, 2019 NY Slip Op. 33744(U), disqualifying a law firm based on its prior representation of the plaintiff, explaining: It is a well-established rule that a lawyer may not represent a client in... Read more »
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Posts Categorized: Law Firms and Professional Ethics
How You Can Protect Yourself Against the Nonpaying Client: The Retaining Lien and The Charging Lien
By Joshua Wurtzel Every lawyer deals with nonpaying clients. It’s a part of the business of law. And it’s something every firm has to confront more often than they’d like to admit—from the biggest law firms in the world down to the solo practitioner working out of his or her house. Deciding whether to pursue... Read more »
Counsel Disqualified from Representing LLC and its Members
On November 21, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in 1186 Broadway Tenant LLC v. Friedman, 2019 NY Slip Op. 33463(U), disqualifying counsel from representing both an LLC and its members, explaining: It is well settled that a party has the right to representation by the attorney of... Read more »
Initial Consultation Insufficient to Justify Counsel’s Disqualification on Conflict Grounds
On September 3, 2019, Justice Masley of the New York County Commercial Division issued a decision in Pizzarotti, LLC v. FPG Maiden Lane, LLC, 2019 NY Slip Op. 32645(U), holding that an initial consultation with a law firm was insufficient to justify that firm’s later disqualification on conflict grounds, explaining: To be represented by counsel... Read more »
Law Firm Disqualified; Its Prior Representation of Opposing Party Was Substantially-Related to Current Dispute
On July 12, 2019, Justice Borrok of the New York County Commercial Division issued a decision in NL Brand Holdings LLC v. Lepore, 2019 NY Slip Op. 32147(U), disqualifying a law firm because its prior representation of an opposing party was substantially-related to the current dispute, explaining: In order to disqualify an adversary’s attorney, the... Read more »
Allegations That Complaint is Based on False Statement Basis for Judiciary Law Counterclaim
On July 9, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Gerard Fox Law, P.C. v. Vortex Group, LLC, 2019 NY Slip Op. 32065(U), holding that allegations that a complaint was based on false allegations of fact are a sufficient basis for a Judiciary Law claim, explaining: To state... Read more »
Client Can Seek to Recoup Fees Paid to Counsel that had an Alleged Conflict of Interest
On June 19, 2019, the Second Department issued a decision in Baugher v. Cullen & Dykman, LLP, 2019 NY Slip Op. 04904, holding that a client could assert a claim to recoup fees paid to counsel that had an alleged conflict of interest, explaining: An attorney who violates a disciplinary rule may be discharged for... Read more »
Arbitrator, Not Court, to Decide if Provision of Contract Unenforceable as a Matter of New York Public Policy
On April 22, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Selendy v. Quinn Emanuel Urquhart & Sullivan, LLP, 2019 NY Slip Op. 29119, holding that an arbitrator, not the court, should decide whether a contract provision was unenforceable as a matter of New York public policy, explaining: When determining... Read more »
Partnership Tax Returns Were Not Dispositive Evidence of Plaintiff’s Status as a Partner
On April 2, 2019, Justice Masley of the New York County Commercial Division issued a decision in Barrison v. D’Amato and Lynch, LLP, 2019 NY Slip Op. 30905(U), holdiong that partnership tax returns were not dispositive evidence of a plaintiff’s status as a partner, explaining: Whether partnership status is enjoyed turns on various factors, including sharing... Read more »
Lack of Retainer Agreement Does Not Bar Counsel from Recovering For Work on Account Stated Theory
On March 12, 2019, the First Department issued a decision in Carling v. Peters, 2019 NY Slip Op. 01713, holding that the lack of a signed retainer letter does not bar counsel from recovering for work on an account stated theory, explaining: [Defendant] claims she could not have paid him due to the absence of a... Read more »