STATEMENT OF FACTS

Background

               On or about June 22, 1994, plaintiffs consulted with and retained defendant to represent them in a medical malpractice action against Columbia Presbyterian Medical Center to recover damages for the hospital’s medical malpractice arising out of the death of plaintiffs’ son, Seth. Plaintiffs signed a standard written retainer agreement with defendant to prosecute the action in accordance with Judiciary Law § 474-a(2).
               On or about October 11, 1994, defendant commenced the malpractice action on plaintiffs’ behalf in the Supreme Court, New York County, under Index No. 128682/94 (Ralph H. Speken and Stephanie Z. Speken, as Co-Administrators of the Estate of Seth B. Speken, Deceased, and Ralph H. Speken and Stephanie Z. Speken, Individually v. Columbia Presbyterian Medical Center, et al) (the "Medical Malpractice Action").
               In March 1996, Columbia Presbyterian obtained an order permitting it to bring a counterclaim against plaintiff Ralph Speken for indemnification and/or contribution based upon his alleged malpractice in the treatment Seth. Defendant engaged Clare Pare, Esq., to represent Ralph Speken on the counterclaim. Plaintiffs signed a retainer agreement with Ms. Pare providing for a contingent fee of 25% of the net proceeds received from the wrongful death action, after payment of defendant’s attorney’s fees for prosecution of the Medical Malpractice Action. Plaintiffs later learned that defendant misrepresented to them that he could not represent Ralph Speken on the counterclaim.
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