Real estate transactions typically involve great sums of money. When real estate investment is the primary function of a New York business, the investors often rely on the ethical and loyal assistance of an attorney who can offer advice and guidance on the prudence of a purchase. However, an attorney with conflict of interests can place the well-being of his or her clients in jeopardy. This is one example of legal malpractice.
A real estate developer in another state retained an attorney who, along with the company’s senior vice president of acquisitions, advised the company on whether to invest in deals throughout the city. Apparently, the senior vice president had a real estate investment business of his own and took advice from the same attorney for his own projects. Neither the attorney nor the executive disclosed to the company that they were working together while still employed by the developer.
The conflict of interests came to light when the executive apparently left incriminating documents on a copy machine at the real estate company. It was then that the company learned that the executive had apparently advised the company to withdraw from purchasing a building to be renovated into apartments, which the executive then purchased for his own company with the assistance of the attorney. Reportedly, the real estate company lost $1 million in revenue from that project in addition to other projects siphoned by the executive for his own company.
The attorney is accused of helping to incorporate the executive’s competing business and operating in conjunction with the business while still employed by the real estate developer. They are suing for legal malpractice for the numerous times the attorney violated their trust with transactions that cost the company substantial profits. Those involved in New York real estate transactions deserve quality legal representation and have the right to pursue justice if an attorney breaches their trust.