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SAMUEL GONZALEZ et al., Respondents, v. GLORIA GORDON, Doing Business as CADO CAPITAL CO., et al., Defendants, and AARON GELBWAKS, Appellant.

There is ample evidence to support the trial court's finding that defendant attorney engaged in an impermissible conflict of interest by simultaneously representing plaintiff and Sagefil Development Corp. in a loan transaction, while having an undisclosed adverse personal interest in the transaction by virtue of his having previously personally guaranteed nearly $500,000 in loans to Sagefil. Sufficient credible evidence was also presented to support the conclusion that defendant disbursed approximately $39,000 in escrow funds being held on behalf of plaintiff, without plaintiff's authority. However, the record is devoid of proof that defendant "engaged in a chronic, extreme pattern of legal delinquency", needed to support the trial court's award of treble damages pursuant to Judiciary Law § 487 ( Bridges v 725 Riverside Dr., 119 AD2d 789, citing Wiggin v Gordon, 115 Misc 2d 1071). In particular, there is no evidence that defendant defrauded plaintiff or engaged in conduct intended to deceive. We have considered defendant-appellant's remaining arguments and find them to be without merit.

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GONZALEZ v. GORDON
(Nov 19, 1996)