Justice Louis York
Wadsworth Condos sued law firm Dollinger Gonski & Grossman for legal malpractice on behalf of itself and 43 Park Owners Group arising from the firm’s representation of a tenancy in common. Wadsworth apparently alleged that the law firm committed legal malpractice for commencing the underlying lawsuit when they sided with 43 Park and assisted the architecture and engineer defendants in a plan to convert the project from a condominium to a rental building without the approval of the tenancy in common. The law firm defendants maintained that Wadsworth does not have standing to bring this derivative action because its objective in filing this lawsuit was to vindicate its own rights as an individual corporation, and not to act on behalf of the rights of the tenancy in common. The court disagreed. It determined, among other things, that Wadsworth properly set forth various allegations in the complaint that demonstrated how the tenancy in common was allegedly impacted by 43 Park’s actions, which were made without the consent of Wadsworth, and were in violation of the management agreement.
