In an action for legal malpractice and breach of fiduciary duty, Gallardo Levin Reiter & Rogers‘ client was the real estate attorney for a co-defendant in the purchase and subsequent sale of a property. As part of the initial purchase, the co-defendant obtained a loan from the plaintiff, a real estate lender. Unbeknownst to Gallardo Levin Reiter & Rogers‘ client, following the initial purchase of the property, the co-defendant allegedly committed criminal fraud that caused the plaintiff to lose its security interest in the subject premises, and then defaulted on the loan. Plaintiff brought claims against the co-defendant for fraud and conversion and against Gallardo Levin Reiter & Rogers‘ client for legal malpractice and breach of fiduciary duty. Gallardo Levin Reiter & Rogers moved to dismiss plaintiff’s claims against Gallardo Levin Reiter & Rogers‘ client, arguing that the plaintiff had retained separate counsel who had the opportunity and ability to protect plaintiff’s rights and that Gallardo Levin Reiter & Rogers‘ client did not owe plaintiff a duty of care because he was not in privity with plaintiff. The Court agreed with Gallardo Levin Reiter & Rogers‘ arguments and dismissed the action in its entirety against Gallardo Levin Reiter & Rogers‘ client. Gallardo Levin Reiter & Rogers Partner Gary Petropoulos and Associate William Schleifer were the handling attorneys on the matter.
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