On December 18, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Gutterman v. Stark, 2017 NY Slip Op. 32618(U), holding that investment advisors are not professionals who can be the subject of a claim for professional malpractice, explaining:
As to Stark, the motion is denied as to the third cause of action for malpractice. The Complaint alleges that Stark became the financial and investment advisor for Gutterman, but failed to use reasonable and proper skill in providing financial and investment advice and to properly manage his account. Malpractice is professional misfeasance. Professional malpractice requires that a professional failed to perform services with due care and in accordance with the recognized and accepted practices of the profession. Professionals, in the context of professional malpractice, refers to the learned professions such as architects, engineers, lawyers, and accountants. Financial advisors are not professionals.
(Internal quotations and citations omitted).
We both bring and defend professional malpractice claims and other claims relating to the duties of professionals such as lawyers, accountants and architects to their clients. Contact Schlam Stone & Dolan partner John Lundin at firstname.lastname@example.org if you or a client have questions regarding such claims or appeals of such claims.
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