Practice point: A claim for legal malpractice is viable, despite settlement of the underlying action, if it is alleged that the settlement was effectively compelled by the mistakes of counsel.
Students should note that, at the pleading stage, plaintiff is required only to plead facts from which it could reasonably be inferred that defendant's negligence caused a loss.
The case is Garnett v. Fox, Horan & Camerini, LLP, NY Slip Op 01589 (1st Dept. 2011 ).
Tomorrow's issue is fraudulent inducement and promissory fraud.