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Legal Updates for Lawyers' Professional Liability

Legal Updates for Lawyers’ Professional Liability – RESULTS

Legal Updates for Lawyers’ Professional Liability – January 2026

January 1, 2026

Carol VanderWoude (Philadelphia, PA) and Aaron Moore (Wilmington, DE) secured a Delaware Supreme Court affirmance of the dismissal of a complex legal malpractice claim. The plaintiffs—seven affiliated property development companies and their owners—had been sued by their bank for defaulting on multiple credit lines totaling about $7 million plus attorneys’ fees. Our client defended those suits, which ultimately settled for the full amount owed, plus interest and fees. The plaintiffs later alleged malpractice, claiming our client should have advised an earlier settlement to avoid legal fees, expert costs, additional interest, and lost business opportunities. The trial court dismissed the claims because the plaintiffs’ expert lacked relevant experience and their damages were speculative, and the Supreme Court affirmed.

Aaron Moore (Wilmington, DE) obtained dismissal of an unjust enrichment claim brought by a condominium unit owner against the attorneys who represented her condominium association. The unit owner claimed that the law firm was liable to her for unjust enrichment in connection with legal fees it received from the association for legal services provided in their efforts to collect on past due assessments owed by the unit owner. Pursuant to the association’s governing documents, the charges were passed on to the unit owner. The court agreed that the fees paid to our client by the condominium association were properly earned.

Michael Jacobson (New York, NY) obtained dismissal of a legal malpractice suit that also alleged breach of fiduciary duty, fraudulent misrepresentation, and a Judiciary Law § 487 violation. The plaintiff had retained our clients to pursue an employment discrimination claim, which was compelled to arbitration and ultimately rejected after a four-day hearing. We argued the malpractice complaint lacked allegations of negligence and causation, the additional claims were duplicative, and § 487 does not apply to arbitration. The court agreed and dismissed all claims.

Maria Nudelman and Michael Jacobson (both of New York, NY) were successful in having their motion to dismiss granted in a legal malpractice and breach of fiduciary duty case. Our client represented the plaintiffs in an underlying landlord-tenant proceeding commenced against them by the Department of Housing Preservation and Development of the City of New York (HPD). The plaintiffs allegedly failed to correct over 20 Building Code violations. Our client was retained by the managing agent of the buildings and appeared as counsel and executed a Consent Order on behalf of all the respondents proceeding, including the plaintiffs. The Consent Order gave the plaintiffs and the other respondents until June 30, 2021, to pay $37,500 to HPD, and if they failed to make the payment, a judgment for that amount could be entered against them. The plaintiffs claimed that they never knew about the Consent Order and as a result, a $375,000 judgment was entered against them. We moved to dismiss, arguing that the claim was barred by the statute of limitations and that the breach of fiduciary duty claim was simply duplicative of the malpractice claim and should also be dismissed. The court agreed and dismissed both counts.

Diane Toner and Matthew Flanagan (both of New York, NY) were successful in defending an appeal from the denial of the plaintiff’s motion to set aside the verdict following unanimous jury verdict in favor of our clients. The plaintiff, Hyon S. Yi, as administrator of the Estate of Chin W. Yi, commenced this action against our clients alleging causes of action for legal malpractice, breach of contract, breach of fiduciary duty, and a violation of Judiciary Law § 487. The plaintiff alleged that our clients committed legal malpractice by: (1) failing to assert claims in the underlying action; (2) changing the terms of the retainer agreement to a contingency agreement after discovering that settlement of the underlying action was imminent; (3) failing to assert direct shareholder claims against the corporate defendant in the underlying action; (4) failing to assert fiduciary duty claims against the majority shareholders of the corporate defendant; (5) failing to seek a receivership or attach the assets of Eastern Farms; (6) and failing to demand prejudgment interest in the second underlying action brought in 2015. The jury found in favor of our clients on all counts. Diane Toner was able to secure dismissal of the plaintiff’s appeal by arguing that the order denying the plaintiff’s motion to set aside the jury verdict was an intermediate order from which there was no right of direct appeal once the final judgment was entered, and that plaintiff did not appeal from the final judgment. The Appellate Division agreed and dismissed the appeal.

Jack Slimm (Mount Laurel, NJ) successfully defended an attorney who specializes in the representation of school boards in a grievance before the New Jersey Office of Attorney Ethics (OAE). The grievance was filed by a plaintiff’s attorney, who argued that our client violated the rules of professional conduct in connection with his arguments to the court at the trial level and on appeal. The OAE rejected the grievance, finding that the allegations of racist and misogynistic behavior by defense counsel were unfounded, that the attorney did not disrespect the court either at trial or on appeal, that the attorney did not lie about the defendant’s defenses, and did not make any false statements of fact in response to the plaintiff’s grievance. 

Josh J.T. Byrne (Philadelphia, PA) won a motion to dismiss a complaint with prejudice in the Eastern District of Pennsylvania in a legal malpractice action stemming out of the criminal investigation into Nicole Daedone and her “orgasmic meditation” company OneTaste.

Scott Eberle (Pittsburgh, PA) achieved a dismissal of a complaint alleging abuse of process on preliminary objections in the Court of Common Pleas of Allegheny County. The complaint alleged the defendant attorney abused process by filing a meritless complaint that contained false allegations for the purpose of “extorting” the insurance company and earning a fee. The trial court found that the plaintiff’s claim failed to state a claim upon which relief can be granted, stating that the primary focus of the plaintiff’s averments were not on alleged abuse of process after it was initiated, but on the alleged ill intentions in initiating the process in the first place. The court noted that the plaintiff had not and could not state a claim for wrongful use of civil proceedings because the plaintiff settled the underlying action and, therefore, could not allege a favorable termination. 

Scott Eberle and Gregory Graham (both of Pittsburgh, PA) obtained a damage-limiting ruling on a motion to dismiss in the District Court for the Western District of Pennsylvania. The case involved defamation per se allegations against our client, a local public broadcasting organization, that were claimed to have resulted in over $30 million in business losses. Via motion to dismiss, Scott and Greg were able to successfully argue that the claim had to be limited in time to a narrow window, thus limiting the plaintiffs’ ability to recover the extensive damages they sought.

Gregory Graham (Pittsburgh, PA) achieved a summary judgment dismissal in the Court of Common Pleas of Allegheny County. The case involved claims of legal malpractice arising from divorce proceedings. 

Nicholas Chrysanthem (New York, NY) obtained summary judgment in a legal malpractice case that arose from an underlying real estate deal that fell apart. The plaintiff claimed that our client failed to properly cancel a real estate contract and alleged the loss of a $175,000 security deposit and unspecified loss of opportunity income. The court initially dismissed the duplicative breach of fiduciary cause of action and the negligent infliction of emotional distress cause of action on our pre-answer motion to dismiss. After the conclusion of discovery on the malpractice cause of action, the court granted summary judgment to our client. 

Nick also obtained pre-answer dismissal of a legal malpractice case against our client who was sued for legal malpractice because his associate neglected to oppose a threshold motion in the underlying auto case. The underlying court granted that threshold motion, in part, and denied it, in part. The plaintiff retained a new attorney without firing our client. The new attorney commenced a malpractice action against our client and refused to substitute as attorney of record in the underlying action. We moved to dismiss the case on a number of issues pre-answer, but primarily because the legal malpractice action was premature and the plaintiff could not prove that “but for” the failure to oppose the underlying threshold motion he would have been able to prove that he had a “serious injury” or actual damages. The court granted our motion to dismiss the legal malpractice complaint. 

Dante Rohr (Orlando, FL) recently secured dismissal of the latest in a series of filings brought by a former client against his attorneys alleging malpractice in the handling of his workers’ compensation and potential American with Disabilities Act claims. The first complaint, filed in state court, was stayed pending final disposition of the plaintiff’s claims in arbitration pursuant to the arbitration provision in the parties’ Retainer Agreement. However, rather than bringing the action in arbitration as directed, the plaintiff refiled his complaint in federal court, adding a plethora of federal causes of action. We argued that none of the pled federal causes of action stated a cause of action under Rule 12(b)(6). The court agreed, dismissing all federal causes of action with prejudice. Because the remaining claims arose solely from state law, the court declined to exercise its subject matter jurisdiction over those claims. Back in state court, more than two years had passed since the entry of the order compelling the plaintiff to bring his claims in arbitration. Because the plaintiff failed to do so, the court dismissed the previously stayed action with prejudice.

*Prior Results Do Not Guarantee a Similar Outcome

Legal Updates for Lawyers’ Professional Liability – January 2026 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 © 2026 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 MEDeSatnick@mdwcg.com.
 

Firm Highlights

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict. 

News

Christina Gonzales To Speak at the Women of Color Roundtable at DRI’s Diversity and Inclusion Seminar

graphic with Maria Granaudo photo text announces she has joined the firm as a shareholder in the Health Care Dept.

News

Maria R. Granaudo Joins Marshall Dennehey’s Wilmington Office As a Shareholder in the Health Care Department

News

John J. Hare Featured in Pennsylvania & Delaware Super Lawyers Magazine

Result

Summary Judgment Secured, Preserving $750,000 in Coverage for Insured in Major Trucking Liability Dispute

Ray Freudiger and Michael A. Roberts (both of Cincinnati) successfully obtained summary judgment on behalf of their client in a coverage dispute arising from a May 19, 2022, motor vehicle accident. A permissive driver operated a box truck for an interstate trucking company and caused severe injuries to two tort victims. Prior to the accident, the insured had procured a commercial auto policy for the trucking company with stated limits of $1,000,000. Following the accident, the insurer initiated a declaratory judgment action asserting that only reduced bodily injury limits of $25,000/$50,000 applied and later counterclaimed, alleging it would not have insured the driver had he been properly submitted for approval under the policy. After extensive discovery, briefing, and oral argument, the court rejected the insurer’s attempt to shift responsibility for the $750,000 in coverage it was legally required to provide for permissive drivers under Ohio law, granting summary judgment in favor of the insured and preserving $750,000 in liability exposure.

Event

29th Annual FDLA Florida Liability Claims Conference

Jim and Erica will team up to present, "Supporting the Next Generation: Connecting with Associates." This panel-style presentation will explore communication best practices from the perspective of a senior shareholder and newer associate. The discussion will focus on the communication styles of different generations and effective strategies to avoid communication breakdowns. Topics to be discussed include the hiring process, perceptions of defense work among newer lawyers, work-life balance issues after hiring, and mentoring.

Thought Leadership

PA Middle District Dismisses Claims Against School District and its Superintendent, Principal, Special Education Director, and Classroom Teacher

A five-year-old special education student was enrolled in the Wyoming Valley West School District and attended the State Street Elementary School during the 2024-2025 school year. The student refused to clean up classroom toys at dismissal. When his teacher allegedly grabbed him by the wrist to walk him back to his seat, the student dropped to the floor and began crying. The teacher then allegedly grabbed the student by the ankle and dragged him across the floor. Following an investigation, criminal charges were not advanced by the county DA, and the school permitted the teacher to return to the classroom. The student’s parents sued, lodging thirteen legal counts under both state and federal law, which sought monetary damages from the teacher, the school district, the superintendent, the principal, and the director of special education. The plaintiff’s 42 USC 1983 claims were dismissed as to the school district for failure to allege a policy or custom violation, and the failure to alleged deliberate indifference in the failure-to-train context. As to the superintendent, building principal, and special education director, the Section 1983 claims were also dismissed for failure to allege personal involvement on the part of the individuals. Regarding an equal protection claim asserted against all defendants, the motion to dismiss was also granted for a failure to advance a plausible equal protection claim, holding that “plaintiffs' single-act allegations do not include a factual basis to even infer that the act was motivated by discriminatory animus rather than some other non-discriminatory impulse.” The court further dismissed the plaintiff’s negligence-based claims including negligence against the teacher and district administrators, NIED, and vicarious liability under the Political Subdivision Tort Claims Act (PSTCA). The federal claims under the IDEA, Section 504, and the ADA were also dismissed in various respects. The IDEA claim was dismissed against all defendants with prejudice for failure to exhaust administrative remedies. The Section 504 claims against the individual defendants were also dismissed with prejudice, as districts, not individuals, are the recipients of federal funds under Section 504. However, the Section 504 and ADA claims were dismissed without prejudice as to defendant Wyoming Valley West, and the plaintiff was permitted leave to amend.

blue facade of a hospital sign against blue sky

Result

Defense Verdict in Complex Medical Malpractice Trial

Thought Leadership

Marijuana Legalization and Workplace Risk: What New Jersey Employers Need to Know

While the legalization of recreational marijuana usage poses a risk of increased work-related accidents for younger workers, employers can work to curb this increase by investing in education, effective drug policies, and employee assistance programs.

Thought Leadership

U.S. Supreme Court Decides Key Issue Regarding Interstate Freight Broker Liability

Freight brokers are intermediaries.  They connect shippers of goods with trucking companies that transport those goods.  Freight brokers match a load of freight with a trucking company and oversee the logistics of the transportation. For a number of years there has been a division among the Federal Circuits regarding the potential liability of freight brokers when the trucking companies that they retain for interstate loads are involved in accidents.  At the center of this division was the Federal Aviation Administration Authorization Act of 1994 (FAAAA).  Some Federal Circuit Courts have held that state law negligent hiring claims against freight brokers were preempted by the FAAAA .  Other Federal Circuits Courts have held that even if preemption applied, the “safety exception” in the FAAAA saved state law negligent hiring claims from federal preemption.  On May 14, 2026, the U.S. Supreme Court addressed the conflict in Montgomery v. Caribe Transport II, LLC, et al, No24-1238. In that case freight broker C.H. Robinson selected Caribe Transport to haul an interstate load. The commercial truck driver employed by Caribe Transport allegedly caused an accident and the plaintiff, Montgomery, was seriously injured. Montgomery brought an action against the driver, Caribe Transport and C.H. Robinson. The allegation against C.H. Robinson was that it negligently retained Caribe Transport when it knew, or should have known, that it was an unsafe company. The Seventh Circuit Court of Appeals held that Montgomery’s claims against C.H. Robinson were preempted by the FAAAA. The plaintiff appealed to the U.S. Supreme Court.  The U.S. Supreme Court’s decision focused primarily on the safety exception in the FAAAA.  That provision provides that the FAAAA preemption “…shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” C.H. Robinson argued, as freight brokers historically have, that their function was not “with respect to motor vehicles” because they do not own trucks or employ drivers. They are merely intermediaries, connecting entities who need freight moved with entities who can do that job. Therefore, C.H. Robinson argued that preemption applied, not the safety exception. The U.S. Supreme Court did not accept that argument. The Court focused on the meaning of the phrase “with respect to” in the safety exception. The Court held that it means “referring to”, “concerning” or “regarding”. Therefore, writing for a unanimous Court, Justice Barrett concluded that “[r]equiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore “concerns” motor vehicles—most obviously, the trucks that will transport the goods. So, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.” Justice Kavanaugh, in his concurring opinion, noted the effect this ruling may have on freight brokers and their insurers throughout the country: Importantly, the Court's decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents. As even plaintiff's counsel stressed, brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies. Tr. of Oral Arg. 27-29. In plaintiff's counsel's words, the brokers "just have to hire carriers that actually have a reasonable policy," and "the broker is not going to have a problem if it's asking the hard questions of the carrier." Id., at 42, 45. In addition, the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability. Id., at 25. That said, the brokers rightly caution against naivete. In the real world, as the brokers forcefully respond, state tort law can be unpredictable, and the costs to brokers of litigation and insurance may be significant even when brokers prevail in lawsuits. Moreover, the costs of litigation and insurance, as well as the costs of brokers' conducting more substantial inquiries into trucking companies, will cascade through the economy and be paid in part by American consumers in the form of higher prices. The concerns expressed by the brokers are legitimate and weighty. The key point here is that freight brokers can no longer claim they are protected from negligent retention claims by the FAAAA (in cases involving interstate transportation). The challenge will be to determine what is considered ”reasonable efforts” used by brokers when retaining transportation companies.