N.Y. state appeals court tosses malpractice case against Carlton Fields
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(Reuters) – A New York state appeals court has thrown out a lawsuit from Frydco Capital Group LLC, which claimed Tampa, Florida-founded law firm Carlton Fields committed malpractice leading to $40 million in losses for the real estate investment company.
New York’s Appellate Division, First Department, in a Thursday decision dismissed the claims, determining that Frydco failed to prove that actions by Carlton Fields and one of its attorneys led to the financial losses.
Frydco Capital was not immediately reachable for comment Friday, and the company’s attorney did not immediately return requests for comment about the decision.
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The company initially sued Carlton Fields and shareholder attorney Brian Hart, who still works at the firm, in 2020 after Hart allegedly continued representing both Frydco and an ousted collaborator, developer Kevin Reilly, on a Florida real estate project.
Frydco said Hart misrepresented Reilly’s position and authority to third parties, causing significant confusion and leading to lost business, according to the initial complaint.
Frydco and Reilly ultimately had to liquidate their interest in the Florida project for a “fraction of its value,” the complaint said.
Frydco sued for breach of fiduciary duty, fraud and negligence, among other claims.
New York Supreme Court Justice Barry Ostrager dismissed many of those claims, but denied Carlton Fields’ motion to dismiss claims related to legal malpractice. The law firm appealed Ostrager’s decision in August 2021.
The Thursday decision said that the evidence Frydco brought forward actually refuted the claim that Carlton Fields prevented the closing of a purchase which led to Frydco’s financial loss.
A spokesperson for the law firm Akerman, which represented Carlton Fields, said it was pleased with Thursday’s result, which it had “anticipated.”
The case is Frydco Capital Group LLC v. Carlton Fields, Supreme Court of the State of New York Appellate Division, First Department, No. 2021-03017
For Carlton Fields: Philip Touitou and Kristen Niven of Akerman
For Frydco Capital Group: Neal Brickman and Ethan Leonard of The Law Offices of Neal Brickman
Read more:
Carlton Fields sued for $40 mln over real estate deal gone wrong
N.Y. real estate lawyer who stole millions from clients disbarred
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Chinekwu Osakwe