A homeowner who blamed her lawyers for a missed filing deadline lost her malpractice case on appeal - and still owes them $7,740.
On August 19, 2026, a New York appeals court affirmed the dismissal of a legal malpractice claim brought by a policyholder against the law firm that had represented her in a coverage dispute with Liberty Mutual Insurance Company. The same ruling upheld a $7,740 judgment against her on the firm's counterclaim for unpaid legal fees.
The policyholder held a homeowners' insurance policy with Liberty. After a dispute over her claim, she hired the firm to pursue it, then later sued the firm - alleging it failed to sue Liberty "within two years of the date of loss, as required by the policy." That two-year window is the deadline homeowners' policies commonly set for filing suit.
A legal malpractice case in New York turns on two elements: that the attorney "failed to exercise the ordinary reasonable skill and knowledge commonly possessed by a member of the legal profession," and that the failure "proximately caused the plaintiff to sustain actual and ascertainable damages."
The firm defeated both. It showed the delay traced to the client's "own inaction and failure to communicate with the defendants that prevented the filing of a timely lawsuit against Liberty." It also showed the alleged malpractice caused no damages, because she "failed to comply with the conditions set forth in the policy and would not have prevailed in her action against Liberty even if timely commenced."
The court found the trial court had properly granted summary judgment on both points. The firm had represented her at her examination under oath and had communicated with Liberty about the claim.
On the fees, the firm produced its retainer agreement, invoices, and the client's deposition testimony, in which she said she had not paid the outstanding bills. That supported the $7,740 award.
On both questions, the policyholder "failed to raise a triable issue of fact."
