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Panel Dismisses Former Computer Associates Accountants' Suit Against Kaye Scholer
New York Law Journal
November 13, 2007
A New York appellate panel has thrown out the legal malpractice suit initiated by three former Computer Associates accountants against the firm of Kaye Scholer.
The three plaintiffs -- Irene Salvatore, Andrew Press and Brian A. Wright -- were fired from CA in April 2004, during the accounting scandal that resulted in the securities fraud conviction of the company's then-chief executive Sanjay Kumar. In their complaint, the plaintiffs asserted, among other allegations, that Kaye Scholer's representation of them during the company's internal investigations resulted in their termination.
Suffolk County Supreme Court Justice Elizabeth H. Emerson dismissed claims against CA and Kumar, but allowed the case against Kaye Scholer and firm partner Jane W. Parver.
Last week, a unanimous Appellate Division, 2nd Department panel reversed in part, throwing out the claims against Kaye Scholer and Parver. The panel held that Parver was never retained by Press and Wright. As for Salvatore, it cited the dismissal of the underlying causes of action for defamation, wrongful termination, promissory estoppel and civil conspiracy. "With the dismissal of those causes of action, the plaintiff Salvatore cannot allege that 'but for' Kaye Scholer's and Parver's alleged malpractice, Salvatore was wrongfully terminated and defamed and, therefore, cannot allege a legally cognizable injury," the panel held in an unsigned opinion.
The case is Salvatore v. Kumar.
