Apr 14th, 2015

FKB’s Andrew R. Jones and Stefanie A. Singer obtain dismissal of a legal malpractice claim in connection with an Attorney’s role as Escrow Agent over an account containing $10.3 million


FKB’s succesfully obtained pre-answer dismissal on a Motion to Dismiss from Justice Jaffe in New York County Supreme Court.

The Claimant alleged breach of fiduciary duty and specific performance arising out of FKB’s Attorney/Client’s role as Escrow Agent over an account containing $10.3M, which account is the subject of highly contentious/protracted/pending other litigation.

The Attorney received conflicting demands for disbursement and, as a result, interpleaded the escrow funds in federal court. Claimant sought inter alia to compel the Attorney to disburse the funds to Claimant, premised on a purported lack of timely objection to her demand. Claimant also alleged that the Attorney’s failure to disburse the funds to Claimant and commencement of the interpleader were breaches of his fiduciary duty and in violation of the terms of the Escrow Agreement. FKB argued in favor of an interpretation of the Escrow Agreement language to support that a timely objection was made, and that the interpleader was proper and in accordance with the Escrow Agreement. Claimant of course argued in favor of a different interpretation to support a finding of a breach. In the Decision and Order, Justice Jaffe agreed with all of FKB’s arguments in support of dismissal, including FKB’s interpretation of the language in the Escrow Agreement, and further agreed that Petitioner’s Proposed Amended Petition was without merit. A copy of the Decision and Order can be found here

If you have any questions about this case, or the defense of attorneys in general, please contact Andrew R. Jones or Stefanie A. Singer