Attorney Loses Motion to Dismiss Claim of Negligent Negotiation of Settlement
On December 23, 2021 an appellate court covering Saratoga County upheld the denial of a law firm's motion to dismiss a legal malpractice claim. The plaintiff claimed that she hired the defendant law firm to negotiate a settlement agreement with her former employer, the Town of Milton. The plaintiff contended that a clause in the "settlement agreement that was supposed to guarantee plaintiff future employment with Saratoga County was deemed unenforceable." In fact, the settlement agreement only provided that plaintiff "will be offered a position" with Saratoga County. However, the Town of Milton cannot bind Saratoga County which didn't sign off on the agreement. Plaintiff did not get an employment offer from Saratoga County which triggered the legal malpractice claim.
The defendant argued that plaintiff read and understood the settlement agreement and knew of the possibility that she might not get a job with the Saratoga County. The Court explained that it was premature to dismiss the malpractice claim, especially given plaintiff's argument that she relied on the representation that she would be offered a job with the County and otherwise settled for a lot less than she otherwise would have. Wilson v Tully, 2021 WL 6066642.
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