| Fletcher v Boies, Schiller & Flexner LLP |
| 2014 NY Slip Op 51164(U) [44 Misc 3d 1216(A)] |
| Decided on July 30, 2014 |
| Supreme Court, New York County |
| Bransten, J. |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Mary Anne
Fletcher, Plaintiff,
against Boies, Schiller & Flexner LLP and ANDREW HAYES, , Defendants. |
In this action, Plaintiff Mary Anne Fletcher asserts two legal malpractice claims against Defendants Boies, Schiller & Flexner LLP ("BSF") and Andrew Hayes. These claims stem from Defendants' representation of Fletcher, a fashion model, in her disputes with several prominent modeling agencies, as well as a major department store.
Presently before the Court are the parties' cross-motions for summary judgment. Defendants contend that both of Plaintiff's claims should be dismissed, while Plaintiff asserts that there are no material facts in dispute and that she is entitled to judgment on her claims.
It is well-understood that summary judgment is a drastic remedy and should only be granted if the moving party has sufficiently established the absence of any material issues of fact, requiring judgment as a matter of law. Vega v. Restani Constr. Corp., 18 NY3d 499, 503 (2012) (citing Alvarez v. Prospect Hosp., 68 NY2d 320, 324 (1986)). Once this showing has been made, the burden shifts to the party opposing the motion to produce evidentiary proof, in admissible form, sufficient to establish the existence of material issues of fact which require a trial of the action. Zuckerman v. City of New York, 49 NY2d 557, 562 (1980). When deciding a motion for summary judgment, the Court must view the evidence in the light most favorable to [*4]the non-movant. Branham v. Loews Orpheum Cinemas, Inc., 8 NY3d 931, 932 (2007). However, mere conclusions, unsubstantiated allegations or expressions of hope are insufficient to defeat a summary judgment motion. Zuckerman, 49 NY2d at 562; see also Ellen v. Lauer, 210 AD2d 87, 90 (1st Dep't 1994) ("[it] is not enough that the party opposing summary judgment insinuate that there might be some question with respect to a material fact in the case. Rather, it is imperative that the party demonstrate, by evidence in admissible form, that an issue of fact exists ...") (citations omitted).
A.Plaintiff's Legal Malpractice Claims
"An action for legal malpractice requires proof of the attorney's negligence, a showing that the negligence was the proximate cause of the plaintiff's loss or injury, and evidence of actual damages." Pellegrino v. File, 291 AD2d 60, 63 (1st Dep't 2002). Plaintiff must show that "but for counsel's alleged malpractice, [she] would not have sustained some actual ascertainable damages." Id. Accordingly, "[a] failure to establish proximate cause requires dismissal regardless of whether negligence is established." Russo v. Feder, Kaszovitz, Isaacson, Weber, Skala & Bass, LLP, 301 AD2d 63, 67 (1st Dep't 2002). "Notwithstanding counsel's purported negligence, the client must demonstrate his or her own likelihood of success; absent such a showing, counsel's conduct is not the proximate cause of the injury." Id.; see also Weil, Gotshal & Manges, LLP v. Fashion Boutique of Short Hills, Inc., 10 AD3d 267, 271-72 (1st Dep't 2004) ("Under New York law, to establish the elements of proximate cause and actual damages, where the injury is the value of the claim lost, the client must meet the case within a case' requirement, demonstrating that but for' the attorney's conduct the client would have prevailed in the underlying matter or would not have sustained any ascertainable damages.") Moreover, speculative or conclusory allegations of damages cannot support a legal malpractice claim. See Pellegrino, 291 AD2d at 63; Russo, 301 AD2d at 281; John P. Tilden, Ltd. v. Profeta & Eisenstein, 236 AD2d 292, 292-93 (1st Dep't 1997).
Plaintiff asserts that but for Defendants' handling of her claims against Macy's, IMG, and Elite, "there would have been a different and better outcome" and that she "would have been more highly compensated." (Am. Compl. ¶¶ 121-122.) Defendants counter that Plaintiff's claim against Macy's was unsustainable, while its claims against IMG and Elite were voluntarily settled by Fletcher. These claims will be addressed in turn.
a.Claim Against Macy's
Plaintiff's claim against Macy's stemmed from the company's unauthorized use of her image in newspaper advertisements running between May and July 2002. As the Amended Complaint explains, by using the images, Macy's "received the benefit of a top model enhancing the reputation of their lower level brand." (Am. Compl. ¶ 4.) However, in the process, Fletcher's [*5]"top career" was "lost the second [Macy's] ran the unauthorized advertising images associating her with low level brands." Id. ¶ 35.
While Plaintiff is correct that settlement of an action in and of itself will not preclude an award of damages for legal malpractice, to prevail on her claim, Plaintiff must affirmatively demonstrate that "the settlement was caused by the malpractice." Fusco v. Fauci, 299 AD2d 263, 263 (1st Dep't 2002). Plaintiff attempts no such showing here. Instead, Plaintiff states without substantiation that she felt compelled to settle this claim because she could not afford to hire new attorneys and "felt that the prudent thing to do was to try to mitigate the mess defendants left [her] with." See Affidavit of Mary Anne Fletcher ¶ 18. This statement does not demonstrate that the settlement was caused by malpractice. Nor does it establish Fletcher's likelihood of success notwithstanding counsel's purported negligence. See Russo v. Feder, Kaszovitz, Isaacson, Weber, Skala & Bass, LLP, 301 AD2d 63, 67 (1st Dep't 2002). In the absence of a showing of causation, this claim must be dismissed.
c.Claims Against Elite
As with the IMG-related claim, Defendants demonstrate that Fletcher settled her claim against Elite regarding the loss of her portfolio. See Hayes Affirm. Ex. 11 (August 11, 2007 Settlement Agreement between Fletcher and Elite). Plaintiff points to no evidence rebutting Defendants' assertion that this settlement was voluntary. See Bellinson Law, LLC v. Iannucci, [*6]102 AD3d 563, 563 (1st Dep't 2013) (affirming dismissal of legal malpractice claim on summary judgment where "[t]he record does not support defendant's contention that he was forced to settle the underlying action Indeed, even if plaintiff was negligent, there is evidence in the record indicating that defendant had other options besides settling the case."). While Plaintiff argues in her affidavit that she was forced to settle her claim due to Defendants' shortcomings, she makes no showing as to the merits of the claim, let alone the requisite showing that she would have prevailed in her claims against Elite and recovered more damages than the $240,000 that she recovered through her settlements.[FN9] See Russo, 301 AD2d at 67; see also Ellen v. Lauer, 210 AD2d 87, 90 (1st Dep't 1994) ("[it] is not enough that the party opposing summary judgment insinuate that there might be some question with respect to a material fact in the case. Rather, it is imperative that the party demonstrate, by evidence in admissible form, that an issue of fact exists ...") (citations omitted). Accordingly, in the absence of any material facts in dispute, summary judgment as to this portion of Plaintiff's claim is granted to Defendants.
With regard to the Fears class action, Plaintiff maintains that Defendants committed malpractice by failing to add her as a class representative. However, again, Plaintiff fails to demonstrate the merit of her claim. Plaintiff does not dispute Defendants' showing that she retained BSF and Hayes long after the deadline for adding class representatives had passed. See Hayes Affirm. Ex. 12 (court order setting December 9, 2002 deadline for naming of class plaintiffs); id. Ex. 13 (November 13, 2003 retention letter signed by Fletcher and Hayes). Therefore, Defendants could not have timely added Fletcher as a class representative. Since Plaintiff does not rebut Defendants' showing, Defendants' motion for summary judgment is granted, as Fletcher fails to demonstrate negligence.
Further, to the extent that Plaintiff challenges the amount of her settlement recovery in the Fears action, she does not dispute Defendants' showing that she recovered 100% of her approved claim. See Hayes Affirm. Ex. 14 at 8 (May 6, 2005 Decision in the Fears action stating that the settlement fund covered the entirety of class plaintiffs' claims). Fletcher likewise does not demonstrate that her entitlement to a greater recovery. Therefore, this claim alternatively merits dismissal on this basis.
Plaintiff likewise challenges the settlement amount in the Shelton action. The Shelton action is the state court class action, with which Plaintiff's complaint — Fletcher v. Elite Model Management Corp. — was consolidated. Although Fletcher asserts that she was forced to settle the Shelton action to mitigate the damage caused by Defendants' purported malpractice, once again, Plaintiff makes no showing as to her likelihood of success on the claims asserted. Moreover, Defendants demonstrate that Plaintiff's claims against Macy's were time-barred and that Fletcher settled her claims against Elite in 2007, well before the Shelton settlement. See [*7]Hayes Affirm. Ex. 11; id. Ex. 18 (March 26, 2010 check made out to "Maryanne Fletcher" containing Shelton recovery). Plaintiff does not rebut this showing.
Further, Plaintiff contends that Defendants improperly dismissed her individual claims against Macy's in the Fletcher action without her consent, constituting a separate instance of malpractice. While the parties present a factual issue as to whether Fletcher consented to the dismissal without prejudice of her claims, once again, Plaintiff fails to demonstrate that but for the dismissal without prejudice she would have prevailed against Macy's. As discussed several times in this opinion, Defendants already have demonstrated that Plaintiff's claims were time-barred, and Plaintiff offers nothing to rebut that showing. Further, Defendants contend that following the agreement to dismiss Plaintiff's claims in the Fletcher action without prejudice, Defendants drafted a complaint against Macy's, asserting Fletcher's same claims. See Hayes Affirm. Ex. 30 (October 13, 2004 letter from Hayes to Fletcher attaching draft complaint against Macy's). Plaintiff does not rebut Defendants' assertion that she chose not to file this complaint, again demonstrating Plaintiff's inability to establish causation. Accordingly, Defendants' motion for summary judgment as to this claim is granted.
In addition to the various claims addressed above, Plaintiff alleges that Defendants committed malpractice through their simultaneous representation of both Fletcher individually and the class plaintiffs in the Fears and Shelton actions. Fletcher contends Plaintiff's individual claims lessened the potential recovery for the class, and conversely, the class claims lessened the recovery for Fletcher individually.
Plaintiff's second claim alleges only one act of legal malpractice, pertaining solely to Defendants' representation of Fletcher in the Elite bankruptcy. Fletcher alleges that Defendants made untimely filings on her behalf, which included filing her proof of claim after the court-ordered deadline. As a result, Plaintiff asserts that she was forced to settle her claim with Elite for far less than it was worth, since the claim was "at risk of being expunged" due to the late filing. See Fletcher Aff. ¶ 20.
Defendants seek summary judgment, arguing that the claim was accepted by the bankruptcy court, notwithstanding its late filing. See Defs.' Rule 19-a Statement ¶ 41; Hayes Affirm. Ex. 4, 36. Plaintiff does not rebut or otherwise address Defendants' factual showing as to the court's acceptance of her proof of claim.[FN10] Defendants therefore rebut Plaintiff's allegation that a cloud existed over her bankruptcy claim as a result of the late filing and that the risk of having the claim rejected forced her to accept a lower settlement. Accordingly, Plaintiff once again has failed to demonstrate that Defendants' alleged negligence caused her injury.
Moreover, just as Fletcher has failed to show that the settlement was caused by the alleged malpractice, she has not demonstrated that value of her underlying claim was in excess of the settlement. See Fusco v. Fauci, 299 AD2d 263, 263 ("Settlement of an action will not preclude an award of damages for legal malpractice where the plaintiff is able to demonstrate that the settlement was caused by the malpractice and resulting damages, namely, that the value of the underlying claim was in excess of the settlement.") While Plaintiff contends that she will prove the amount of her damages at trial, she attempts no showing here on summary judgment of the value of her claim against Elite, let alone a showing that the claim's value exceeded the amount of her settlement $125,000. While Plaintiff baldly states that the claim was worth $3,000,000, she offers no evidence to support that assertion. see also Ellen v. Lauer, 210 AD2d 87, 90 (1st Dep't 1994) ("[it] is not enough that the party opposing summary judgment insinuate that there might be some question with respect to a material fact in the case. Rather, it is imperative that the party demonstrate, by evidence in admissible form, that an issue of fact exists ...") (citations omitted).
Accordingly, Plaintiff's motion for summary judgment is denied, while Defendants' motion is granted.III.Conclusion
For the foregoing reasons, it is
ORDERED that Defendants Boies, Schiller & Flexner LLP ("BSF") and Andrew Hayes's motion for summary judgment is granted, and the complaint is dismissed with costs and [*8]disbursement to defendants as taxed by the Clerk of the Court, upon submission of an appropriate bill of costs; and it is further
ORDERED that plaintiff's cross-motion for summary judgment is denied; and it is further
ORDERED that the Clerk is directed to enter judgment accordingly.
Dated: New York, New York
July 30, 2014
E N T E R