Recovery of over $300,000 Owed to Disabled Woman on Attorney's Improper Use & Distribution of Settlement Funds
McCarthy Fingar's lawyers are sometimes retained to recover funds from lawyers who improperly fail to give their clients moneys due them. In 2008, McCarthy Fingar partner, Joseph Brophy, who leads the firm's Legal Malpractice group, was contacted by the grandmother of a disabled young woman. The grandmother had recently been appointed as guardian by the court in place of the young woman’s parents, who were squabbling over control of money that had been awarded to their daughter in settlement of a lawsuit several years before. The grandmother was concerned that the father may have misappropriated $125,000 of her granddaughter’s money that had been entrusted to him by the court to help pay for housing for the granddaughter. The grandmother had asked the court for information, but had been told that the settlement papers were sealed. She retained Joe to apply to get access to the sealed settlement documents. The prior attorneys were uncooperative and Joe had to bring on a special proceeding to obtain the settlement documents. When he did obtain them, Joe learned that the attorneys had released $125,000 to the father in violation of a court order requiring the father to file a security interest in the house he was buying, to protect his daughter’s funds, before the money was released. After buying the house, he had then mortgaged it twice, so the $125,000 had in effect gone into the father's pocket. Joe also learned that the former lawyers had been awarded hundreds of thousands of dollars by the court for expenses in anticipation of a trial that had never taken place, and that they had never accounted to the court or their clients for any of that money. After Joe filed a legal malpractice claim against the attorneys and brought on an application for contempt against the lawyers and the father, the lawyers pressured the father to place a lien upon the house, accounted for the funds, and refunded over $177,000 to Joe’s client. The father eventually sold the house and paid back the $125,000 he owed to his daughter.
Legal Malpractice - Jury Trial & Settlement - Effective Cross Examination
Legal Malpractice Case Settled During Trial & After Effective Cross Examination
Successful settlements often only happen during a trial, and just before a jury verdict. This legal malpractice matter was jointly tried before a jury by Joel M. Aurnou and Joseph J. Brophy. The allegation was that the our client’s matrimonial lawyer had failed to identify an expert witness in time, forcing her to settle her matrimonial case for a fraction of its true value. To add insult to injury, her former lawyer then sued her for unpaid attorney’s fees. She retained McCarthy Fingar, and counter claimed for legal malpractice. The case only went to trial after Joel Aurnou and Joe Brophy had defeated two attempts by the lawyer to have the counterclaim dismissed. At trial, after three days of cross-examination of the defendant attorney by Joel, the insurer added $500,000 more to its settlement offer that permitted the case to end very favorably for our client.
Sometimes, lawyers fail to identify and pursue a claim that should have been brought for a client; and sometimes the trial court makes the wrong decision when a legal malpractice claim is filed. Here, Joseph J. Brophy obtained a reversal from the Appellate Division, Second Department, on a legal malpractice action brought against an attorney for a failure to prosecute a claim for a client. The malpractice claim had been wrongly dismissed by the trial court.