8

          Petitioners thereafter commenced the instant legal
malpractice action against Moore and, despite the fact that
the issue of the settlement had already been litigated twice,
Petitioners alleged that Moore coerced them into settling the
underlying action. By notice of motion dated August 2, 2002,
Moore moved, pursuant to CPLR 3211(a) (1), (5) and (7) to
dismiss the complaint, maintaining that Petitioners, who had
twice asserted similar claims regarding the settlement
agreement, should be collaterally estopped from bringing an
action against Moore based on the same allegations.

By decision and order dated April 15, 2003, Supreme
Court, New York County (Tolub, 1.), granted Moore’s motion
and dismissed Petitioners’ complaint (7a-12a). After
reviewing the factual and procedural history of the case, the
New York State trial court determined that Petitioners’ claims
are barred. In particular, the court held that:

         The gravamen of [Petitioners’] Complaint
         involves claims of fraud, breach of fiduciary
         duty, breach of contract, negligence and legal
         malpractice. Although [Petitioners] contend that
         the instant complaint is not barred by the doctrine
         of res judicata, the allegations contained within
         the Complaint, most notably within the first and
         second causes of action, admittedly arise directly
         from the settlement of the original malpractice
         action. Consequently, all of [Petitioners’] claims
         made in the instant matter have either already been
         litigated or could have been litigated in the actions
         brought before Justice Heitler and Justice

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