Justice Eileen Rakower
Client Cohen sued defendants alleging nine claims against them, including for breach of contract and legal malpractice. She sought return of fees paid to Kachroo Legal Services (KLS), and punitive damages, among other things. Cohen entered into a retainer agreement with defendants, who agreed to represent her in prosecuting claims against her husband in federal court. She paid a $25,000 retainer, but KLS resigned as Cohen’s attorney in the federal action alleging Cohen was unable to meet her financial obligations. Defendants moved to dismiss claims in Cohen’s second amended complaint, including the legal malpractice claim, arguing the matter constituted a mere fee dispute. The court found the legal malpractice complaint stemmed primarily from defendants’ billing practices, but failed to state a cause of action for malpractice as it did not allege that "but for" the negligence, Cohen would have prevailed in the underlying action. Hence, the claim was dismissed. Yet, the court found Cohen’s allegations, of alleged coercion by defendants to pay legal fees she did not owe and threatening to cease work if fees were not paid, were sufficient to support Cohen’s claim for punitive damages.
