In Baccash v. Sayegh , Iman Baccash owned "Bridal Couture" a bridal gown boutique, and decided to purchase "Peggy Peters," a nearby bridal shop, after its owner died.
Instead of structuring the deal as an asset purchase, Iman's attorney, Andrew Sayegh, negotiated a stock purchase, which obligated Baccash to "assume [Peggy Peter's] trade debt and a bank loan guaranteed by the prior owner."
Baccash claimed her lawyer committed malpractice by failing to advise her of the deal's terms and by defaulting in a lawsuit creditors had started against the two companies.
The Nassau County Supreme Court found Sayegh hadn't exercised the "ordinary reasonable skill and knowledge" an attorney in his position should have and awarded Baccash $53,000.
On appeal, the Appellate Division, Second Department, found Baccash "failed to prove that she suffered any direct damages as a consequence of [her attorney's] alleged acts of legal malpractice."
Since Baccash wasn't personally affected by Sayegh's actions -- her corporate entity was -- and the company had a "separate legal existence," Baccash couldn't prove the entity was her "alter ego" and that she (personally) sustained any damage as a result of the purported malpractice, the AD2 concluded that case should be dismissed.
Did the AD2 leave Baccash at the altar?
To download a copy of the Appellate Division's decision, please use this link: Baccash v. Sayegh