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Legal Updates for Lawyers' Professional Liability

Legal Milestone: Entire Controversy Doctrine Shuts Down Securities Malpractice Appeal

Legal Updates for Lawyers’ Professional Liability – October 31, 2025

Jack and Jeremy successfully defended an appeal arising out of a legal malpractice/securities action in which they were successful at the trial level. The case is noteworthy here because, for the first time in New Jersey in a legal malpractice action arising out of a securities case, the court applied New Jersey's entire controversy doctrine and dismissed the complaint.

In Quigley v. Lesicki, et al., A-3838-23 (App. Div. October 8, 2025), the plaintiff alleged he was misled into purchasing shares and entering into financial agreements without proper legal representation, leading to his default on a Promissory Note. The defendant, through its counsel, and the defendant attorneys, through Jack and Jeremy, moved to dismiss the plaintiff’s complaint, arguing that the claims were barred by the entire controversy doctrine and collateral estoppel. 

The trial court found that the plaintiff was aware of the alleged misconduct by the defendants during prior litigation in Camden County in 2018 and 2019 and opined that he should have raised his claims at that time. The trial court dismissed the complaint, concluding that the claims were transactionally related to the earlier action, and were precluded by the doctrines of entire controversy and collateral estoppel. 

On appeal, the plaintiff argued that the trial court misapplied those doctrines. However, the Appellate Division affirmed the trial court’s decision, agreeing that the plaintiff’s claims were part of a single controversy that should have been litigated in the earlier actions. The Appellate Division emphasized that the plaintiff had the opportunity to raise the claims during the earlier 2018 litigation in Camden County but failed to do so and, thus, his current claims were barred.

Accordingly, this decision is extremely important in connection with the defense of attorneys arising out of or associated with breach of contract and securities cases. 


Legal Update for Lawyers’ Professional Liability – October 31, 2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2025 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.