Medley Management Inc. v Lowenstein Sandler, LLP

Holding The Appellate Division affirmed the summary judgment dismissing the legal malpractice complaint, finding that the defendants’ advice was reasonable and that the plaintiff failed to demonstrate proximate cause or actual damages. The court determined that the plaintiff’s claims regarding the bankruptcy plan’s withdrawal and potential confirmation were speculative and insufficient to raise triable issues of fact.

The court’s words

Supreme Court properly concluded that defendants satisfied their initial burden of demonstrating the lack of triable issues of fact as to the claim for legal malpractice

2026 NY Slip Op 06202, at the official text

Plaintiff's reliance on the disinterested requirement of 11 USC § 327 (a) to argue that the professional judgment defense does not apply is misplaced

2026 NY Slip Op 06202, at the official text

Plaintiff's assertion that the Bankruptcy Court would have confirmed a reorganization plan was speculative and thus, insufficient to raise a triable issue of fact

2026 NY Slip Op 06202, at the official text

Defendants' expert stated that the debtor's notes were trading substantially below face value and that the debtor would need to satisfy more than $100 million in debt

2026 NY Slip Op 06202, at the official text