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Legal Updates for Lawyers' Professional Liability

Legal Updates for Lawyers’ Professional Liability - CASE LAW UPDATE

Legal Update for Lawyers’ Professional Liability – September 2024

September 1, 2024

by Jeremy J. Zacharias RPLU

Appellate Division affirms summary judgment to law firm, finding that plaintiff’s expert report was devoid of any evidence establishing the standard of care providing the benchmark for the opinions offered.

DeCaro v. Elkind and DiMento, 2024 WL 2196587

The plaintiff was involved in a verbal altercation with another patron while at a bar in a Little Egg Harbor, New Jersey, restaurant. She asserted she was later confronted by the patron outside the restaurant, physically assaulted and suffered debilitating injuries.

The plaintiff retained the defendants to file a complaint on her behalf against the restaurant and patron. On the plaintiff’s behalf and with her consent, the defendants agreed to an expedited trial on liability and damages with a high-low agreement, pursuant to which the plaintiff would receive a minimum recovery of $150,000 and a maximum recovery of $750,000. The parties waived their rights to appeal from the verdict, as molded by the court in accordance with the high-low agreement. The parties also agreed the molded verdict would constitute a settlement of all claims.

The plaintiff’s claims against the restaurant and patron were tried before a jury in accordance with the consent order. The jury determined the restaurant was not negligent, the plaintiff was 60% negligent and the patron was 45% negligent. Although the jury’s liability findings otherwise resulted in a no-cause verdict in the restaurant’s and patron’s favor, the court awarded the plaintiff $150,000 in accordance with the parties’ high-low agreement.

The plaintiff subsequently filed a legal malpractice complaint against the defendants, alleging they “negligently and in breach of their fiduciary duty” represented her in the lawsuit against the restaurant and patron. Following the exchange of discovery, the defendants moved for summary judgment, asserting the plaintiff could not sustain her burden of proof at trial because the report from the plaintiff’s liability expert on the defendants’ alleged deviations from the standard of care constituted an inadmissible net opinion. Following argument on the motion, the judge issued a comprehensive bench opinion granting the defendants’ motion.

On appeal, the Appellate Division affirmed the judge, holding the trial court did not abuse its discretion in determining that the plaintiff’s expert’s report was comprised of a series of inadmissible net opinions. The report included opinions concerning purported errors committed by the defendants during their representation of the plaintiff in the personal injury case. The Appellate Division held that the expert report was devoid of any evidence establishing the standard of care providing the benchmark for the opinions offered.  


 

Legal Update for Lawyers’ Professional Liability – September 2024 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 © 2024 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.