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New York Partner Prevails on Appeal for Credit Union Client

New York City Partner Brian S. Gitnik prevailed in the State of New York Supreme Court, Appellate Division. Brian defended an appeal that was heard by the Appellate Division, Third Department, following the resolution of a lawsuit brought by a relative of a member of our client’s credit union who had recently passed away.

In this case, our credit union client acted as the servicer of a mortgage on a property owned by the decedent, Plaintiff’s relative. A few weeks after the decedent passed away, our client sent Plaintiff a pre-foreclosure notice and hired an inspection services company to visit decedent’s property. After entering the subject property, the inspection services company shut down a gas line and performed other work in an effort to winterize the home and protect the property from impending inclement weather. Plaintiff claimed that our client’s inspection services company entered the property before it had the right to do so, and later filed suit against our client claiming they were entitled to actual and punitive damages, stating that our client had trespassed on the property. Further, Plaintiff alleged that our client’s inspection services company stole some of the decedent’s property items while inspecting the subject property.

Prior to trial, all parties to this suit engaged in settlement negotiations, and our partner, Brian Gitnik, communicated our agreement to resolve the case on behalf of our client for an agreed upon negotiated amount. Subsequently, Plaintiff’s counsel agreed to the settlement terms and even approved the settlement documents drafted by Brian. After several months had passed, Plaintiff’s counsel advised Brian that their client was refusing the sign the settlement papers, arguing that he never provided his attorney authority to resolve the case for the amount negotiated in the settlement agreement. At this time, Brian also learned that Plaintiff hired new counsel.

Brian filed a motion seeking enforcement of the purported settlement agreement as our client never received Plaintiff’s response. The Warren County Supreme Court heard our case and granted our client’s motion, finding that the settlement agreement had been reached and confirmed prior to Plaintiff’s change of counsel, memorialized via email and other writings. Plaintiff’s new counsel filed an appeal, arguing that the communications between the parties did not result in a binding agreement. After Plaintiff’s counsel perfected the appeal, the appellate court agreed with Brian’s position and upheld the lower court’s decision, ruling in favor of our client.

Brian is a trial attorney with 25 years of experience defending clients against executive financial, legal and other professional malpractice claims, as well as handling contracts, coverage and general liability cases in state and federal courts.

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