A state judge went too far when she sanctioned a personal injury firm for bringing what she characterized as a “spiteful” suit against a client who sued the firm for legal malpractice, an appellate panel has ruled.

Manhattan Supreme Court Justice Emily Jane Goodman (See Profile) fined Morelli Ratner $6,000 after the firm lodged an action to recoup money it had spent to advance the case of Victoria Kremen, who retained Morelli Ratner after allegedly being misdiagnosed with breast cancer. Ms. Kremen later accused the firm of mishandling the suit against her doctors.

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