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Legal Updates for Lawyers' Professional Liability

Negligent Infliction of Emotional Distress and Breach of Fiduciary Duty Claims Dismissed

Amin v. Ikhilov, Supreme Court, Kings County, Justice Carolyn E. Wade, Index No.: 505887/2016

The plaintiff, a property seller, commenced this action on the grounds that the defendant, his attorney, failed to provide proper legal representation with respect to his sale of real property. The plaintiff asserted three causes of action against his attorney: legal malpractice, negligent infliction of emotional distress and breach of fiduciary duties.

The defendant’s motion to dismiss advanced the following arguments: (1) the negligent infliction of emotional distress claim should be dismissed because there was no allegation that the defendant unreasonably endangered the plaintiff’s physical safety; (2) the breach of fiduciary claim was duplicative of the plaintiff' s legal malpractice cause of action; (3) the plaintiff had not shown that the defendant acted with deceitful intent, which is a required element of a breach of fiduciary duty claim; and (4 ) the legal malpractice claim must be dismissed as the plaintiff had not demonstrated that, "but for" the defendant's actions /inactions , the alleged damage would not have occurred.

The plaintiff, in opposition, argued that he could claim negligent infliction of emotional distress even in the absence of physical harm. He also asserted that the elements for breach of fiduciary duty and legal malpractice were duly set forth in his complaint and that the claims were not duplicative.

The court held that in the instant case, the complaint articulated neither that the plaintiff's physical safety was endangered nor that he feared for his own safety. Moreover, the complaint did not attribute conduct to the defendant that was "so extreme and outrageous as to be considered atrocious and utterly intolerable." (See Moore v. Melsky, 14 AD3d 75 [3d Dept 2005]). As a result, the court dismissed the plaintiff's negligent infliction of emotional distress claim.

Finally, the court found that the plaintiff's breach of fiduciary claim was premised on the same alleged facts as his legal malpractice claim, thus, it was duplicative and warranted dismissal.
 

Legal Update for Lawyers’ Professional Liability – May 2022 is prepared by Marshall Dennehey Warner Coleman & Goggin 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 © 2022 Marshall Dennehey Warner Coleman & Goggin, 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.