Escrow Allegations State Claim

A complaint brought against a defendant law firm sufficiently states a cause of action per this decision of the New York Appellate Division for the First Judicial Department

Plaintiffs’ complaint here, as supplemented, sufficiently states a cause of action that defendants aided and abetted another person’s removal of funds belonging to plaintiffs, hid the funds in their escrow account, and used those funds to pay the other person’s personal and business expenses (see DDJ Mgt., LLC v Rhone Group L.L.C., 78 AD3d 442, 443 [1st Dept 2010]).

Plaintiffs have sufficiently pled a cause of action for an accounting (Matter of Schneider, 131 AD3d 175, 182 [2d Dept 2015], citing Matter of Vagionis, 217 AD2d 175, 177 [1st Dept 1995]; NY St Bar Assn Comm on Prof Ethics Op 532, *2 [1981]). Defendants’ assertion that they have provided an accounting is of no avail, as the document provided is an unsworn, unverified spreadsheet prepared by an unidentified person, without explanation.

(Mike Frisch)