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Defense Digest

On the Pulse… Marshall Dennehey Is Happy to Celebrate Our Recent Appellate Victories*

Defense Digest, Vol. 27, No. 1, January 2021

January 29, 2021

Kimberly Berman (Fort Lauderdale, FL) and Bradley Blystone (Orlando, FL) convinced Florida’s Fifth District Court of Appeal to affirm an administrative law judge’s final order that determined that a claim was compensable under the Florida Birth-Related Neurological Compensation Plan. ​A minor child was permanently and substantially brain damaged as a result of his complicated birth. The parents sought compensation pursuant to NICA under protest. The parents contended that the brain injury that caused the child’s permanent and substantial mental and physical impairment occurred prior to the statutory period (i.e., during labor, delivery, or resuscitation in the immediate post-delivery period in a hospital). They claimed the injury occurred in the 34 minutes from when the cord prolapsed at home to when the mother arrived at the hospital, where she ultimately delivered the child via emergency cesarean section. NICA and the hospital argued that the permanent and substantial impairment occurred during the statutory period. The administrative law judge agreed, and the Fifth District Court of Appeal affirmed the final order determining the claim was compensable. Payne v. Fla. Birth-Related Neurological Injury Comp. Ass’n, 5D20-1206 (Fla. 5th DCA Aug. 11, 2020).

John Gonzales and Shane Haselbarth (Philadelphia, PA) secured a dismissal of a civil rights action against Lancaster County (Pennsylvania), its Children and Youth Agency, and several C&A caseworkers and staff attorneys. ​The plaintiffs are the parents of a child who, at only five months of age, was brought to the hospital with a spiral fracture mid-shaft on his right humerus (the bone in the top half of the arm). The hospital team collectively concluded that the injury was probably accidental in nature, but a nurse reported the injury to C&A, concerned that it might have been caused by abuse. By law C&A is bound to investigate suspected child abuse and did so here. A judge approved the request for a safety plan that required a chaperone to be with the parents and child, even in the home, while the merits of the abuse investigation continued. At the end of the investigation, the judge concluded the injury was accidental, and the safety plan was terminated. The plaintiffs then filed this action, alleging the safety plan violated their Fourteenth Amendment substantive due process rights. The federal district court dismissed the case, concluding the plaintiffs’ allegations of interference with the family unit, even if true, do not rise to the level of “shocking to the conscience” necessary for a due process violation. On appeal, the Third Circuit affirmed, stating that the nurse’s report of possible child abuse, in conjunction with other evidence to support suspicion of the same, make the defendants’ actions not “shocking to the conscience,” and so no substantive due process claim was stated. Dismissal affirmed.

*Prior Results Do Not Guarantee A Similar Outcome

 

Defense Digest, Vol. 27, No. 1, January 2021 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. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2021 Marshall Dennehey Warner Coleman & Goggin. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

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.