MEMORANDUM OPINION
Plaintiff Benny Molina brought this legal malpractice suit against the lawyers who represented him in two related state court actions that culminated in the entry of substantial default judgments against him. But, due to a series of agreements between Molina and the plaintiff-judgment-creditor in one of the underlying actions, Molina sues here as the assignee of the judgment-creditor. Defendants have moved for summary judgment dismissing the amended complaint on several grounds. They rely chiefly on the equitable doctrine of judicial estoppel. The Court agrees that the doctrine applies and holds that Molina, as the judgment-creditor’s as-signee, may not take positions here contrary to those his assignor successfully advanced in the state court actions. For that reason, the Court grants defendants’ motion for summary judgment in its entirety without addressing their remaining arguments.
Facts
The following facts are undisputed.
Between 2002 and 2006, Molina, through various companies under his control, performed renovation and construction work on the Manhattan building in which Gregory and Julie Oyen owned a penthouse apartment. In 2005, the Oyens’ apartment suffered extensive water damage. The Oy-ens and their insurer, Allstate Insurance Company (“Allstate”), filed related state court actions in which they alleged, among other things, that Molina’s negligence in repair work on the building’s roof had caused the damage.
Molina retained the law firm Faust Goetz Schenker & Blee, LLP (“Faust Goetz”) to represent him and the corporate defendants named in underlying actions, with associate Kril Francis handling the day-to-day litigation of the case. In March 2011, Francis filed a motion for summary judgment dismissing the underlying actions, which the court granted as to one of the corporate defendants. The judgment on its face did not apply to Molina in his personal capacity, so he remained a party to the case. Despite this, Francis and Faust Goetz, through inadvertence (according to Faust Goetz) or deception (according to Molina), stopped appearing on behalf of Molina. After counsel for Molina failed to appear for seventeen pre-trial conferences from 2011 through late 2013,
At the inquest, Gregory Oyen submitted an affidavit in which he repeated the allegations in the complaint pertaining to Molina’s negligence. Oyen stated also that he had suffered damages totaling $1,724,447.49. Oyen’s attorney, Daniel J. Hansen, affirmed the damages calculation in his submission to the court. The court awarded net damages of $1,024,447 plus interest to the Oyens and $262,592 plus interest to Allstate, which both parties later entered as judgments against Molina. Faust Goetz’s attempts to have the judgments vacated proved unsuccessful.
Molina and the Oyens then entered into an agreement (the “First Assignment”) in which Molina assigned to Gregory Oyen “all rights, benefits, causes of action, and claims” he might possess relating to the underlying action involving Oyen, including claims for legal malpractice.
Shortly after the execution of the First Assignment, Hansen filed an action in this Court on behalf of Molina against Faust Goetz (the “First Malpractice Suit”), asserting claims nearly identical to those in this case. He did so despite the fact that Molina previously had assigned his right to prosecute the claim to Oyen. With that suit pending, Hansen emailed Allstate’s counsel a draft of a new assignmént agreement between Molina and Oyen and proposed that Oyen and Allstate share in the costs and proceeds associated with the pursuit of the malpractice claims. On November 16, 2015, the parties in the First Malpractice Suit stipulated to its dismissal without prejudice.
Next, Oyen and Molina executed a second agreement (the “Second Assignment”) in which Oyen purported to “assign[ ] back to Molina” any interest covered by the First Assignment.
Hansen then filed this suit on behalf of Molina (the “Second Malpractice Suit”) on November 17, 2015. The complaint made a common law negligence claim and asserted a violation of New York Judiciary Law Section 487. But even after he began litigating this case, ostensibly on behalf of Molina, Hansen continued to represent Oyen in negotiations with Allstate over the terms on which they would share the costs and proceeds of the malpractice lawsuit. Nor did Hansen’s involvement in this case end when attorney Anthony T. DiPietro was.substituted as Molina’s counsel. Rather, Hansen prepared the draft reports for Molina’s experts and appeared as Oyen’s counsel at his non-party deposition.
Discussion
New York law governs this diversity action.
Equitable in nature, the doctrine “cannot be reduced to a precise formula or test,”
“First, a party’s later position must be clearly inconsistent with its earlier position. Second, courts regularly inquire whether the party has succeeded in persuading a court to accept that party’s earlier position.... A third consideration is whether the party seeking to assert an inconsistent position would derive an unfair advantage or impose an unfair detriment on the opposing party if not estopped.”18
These factors are not “inflexible prerequisites” and do not constitute “an exhaustive formula,” as [additional considerations may inform the doctrine’s application in specific factual contexts.”
The somewhat convoluted series of assignments in this case present a twist on an otherwise routine application of the doctrine. Molina brought this suit in his own name, ostensibly to redress the financial harm he allegedly has suffered to due to the alleged negligence of his lawyers in the underlying actions. But defendants argue that Gregory Oyen is the “de facto plaintiff.”
I. Undisputed Facts Establish that Molina Stands in Oyen’s Shoes for Equitable Purposes.
New York courts apply judicial estoppel, like any equitable defense, in tune to the identity of the real party in interest.
In New York, causes of action generally are freely assignable.
When evaluating an equitable defense to an assigned claim, courts must pay careful attention to the identities of the parties and their past conduct. For “[i]t is elementary ancient law that an assignee never stands in any better position than his assignor. He is subject to all the equities and burdens which attach to the property assigned because he receives no more and can do no more than his assignor.”
Molina contends that he “cannot possibly b[e] the assignee of the claims or the proceeds of the claims, since Molina was the only person with the right to bring an
The Second Assignment, in contrast, was not complete and did not restore Molina and Oyen to their respective pre-assignment positions. Rather, the Second Assignment obligated Molina to bring the claims and to deposit the proceeds in Oyen’s attorney’s account, to be distributed almost entirely to Oyen.
To be sure, the Molina listed as plaintiff on the amended complaint is the same person to whom the malpractice claims initially accrued. But that does not change the fact that Molina sues here as Oyen’s assignee under the Second Assignment. If, instead of assigning the malpractice claims back to Molina, Oyen had negotiated the Second Assignment with a different as-signee and that assignee had agreed to prosecute the suit and give the proceeds to Oyen for a small fee, there would be no question that assignee would act as Oyen’s assignee. It would follow also that this hypothetical alternate assignee would be subject to any equitable defenses the defendants could have raised against Oyen. It is of no consequence that the plaintiff here is Molina and not the hypothetical alternate assignee. The results must be the same in the two eases.
A Massachusetts court reached that conclusion in Sandman v. McGrath,
This Court holds that Molina acts here as Oyen’s assignee and stands in his shoes for equitable purposes.
II. Defendants Have Established the Elements of Their Judicial Estoppel Defense.
First, to prevail on either cause of action Molina must establish facts that are directly contrary to those which support the underlying judgments against him. That is so because state law requires plaintiffs to prove causation on both the common law and statutory malpractice claims at issue here—i.e., that the plaintiff would have prevailed in the underlying action “but for” the attorney’s conduct.
The second requirement for judicial es-toppel is met because Oyen “succeeded in persuading a court to accept [his] earlier position.”
The third consideration, “whether the party seeking to assert an inconsistent position would derive an unfair advantage or impose an unfair detriment on the opposing party if not estopped,”
In opposing defendants’ motion, Molina does not address whether the requirements of judicial estoppel are present nor whether the Court should exercise its discretion to grant summary judgment on that basis. Molina argues instead that the doctrine cannot apply because New York
Admittedly, there is some tension between permitting (or at least not categorically prohibiting) the assignment of legal malpractice claims and equitable estoppel because, as this case demonstrates, assignment to a former litigation adversity frequently may lead to its application. That fact is one of several justifications courts in other jurisdictions have cited for outlawing the assignment of legal malpractice claims.
Other states, however, have managed to thread the needle. Massachusetts, for example, sits squarely alongside New York in permitting the assignment of legal malpractice claims. In New Hampshire Insurance Co., Inc. v. McCann,
The Court understands New York law to rest in a position sitnilar to that of Massachusetts. While legal malpractice claims may be assigned in New York (even to former litigation adversaries), nothing prevents a New York court from applying judicial estoppel to a case where all of its requisite elements are satisfied. The myriad instances of New York courts applying the ancient doctrine to prevent inequitable outcomes make this Court confident that a New York court would do so on the facts of this case.
Conclusion
The equitable doctrine of judicial estop-pel prevents Molina, as the nominal plaintiff in this case, from making the arguments necessary for him to prevail. For that reason, the Court grants defendants’ motion for summary judgment, dismissing the amended complaint [DI 7].
SO ORDERED.
Notes
. Summary judgment is proper "if the mov-ant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56. The application of judicial estoppel in this case involves undisputed facts and therefore presents a purely legal question.
. DI 58-37, at 2.
. Id. at 3-4.
. Id. at 6.
. DI 58-41, at 3.
. Id. at 4.
. Id. Although the wording of this provision is somewhat ambiguous, plaintiff has stipulated that it entitles Oyen to all of the funds necessary to satisfy the judgments against Molina and 94 percent of any funds above that amount. DI 57 ¶ 112; DI 67 ¶ 112. Consequently, Molina stands to receive 6 percent of only that portion of the award that is above the amount necessary to satisfy the judgments in the underlying actions.
. Id. at 5.
. DI 58-42, at 2.
. Id.
. Id. at 3.
. Deutsche Bank Nat’l Trust Co. v. Quicken Loans Inc.,
The circuits are divided over whether federal or state law governs the application of judicial estoppel in diversity cases in federal court. Compare Eastman v. Union Pacific R.R.,
The Second Circuit does not appear to have weighed in on the question, although at least one judge of this Court has held that it implicitly has done so. See Vitrano v. State Farm Ins. Co.,
. Brooke S.B. v. Elizabeth A.C.C.,
. Enviro. Concern, Inc. v. Larchwood Const. Corp.,
. Enviro. Concern,
. Zedner v. United States,
. See Stewart v. Chautauqua Cnty. Bd. of Elections,
. Zedner,
In this circuit, the doctrine is "further limited to 'situations where the risk of inconsistent results with its impact on judicial integrity is certain.’" Chevron Corp. v. Salazar,
. New Hampshire,
. Id. at 750,
. DI 59, at 12.
. See, e.g., In re N.Y.S. Urban Dev. Corp.,
. N.Y. Gen. Oblig. L. § 13-101. Some exceptions apply, but they are not relevant here.
. Fairchild Hiller Corp. v. McDonnell Douglas Corp.,
. Spencer,
. Robinson v. Kamens,
. See Cummings v. Morris,
. Int’l Ribbon Mills, Ltd. v. Arjan Ribbons, Inc.,
. See Secured Equities,
. DI 71, at Í3.
. Defendants would have had a colorable argument that the Second Assignment was invalid under state law or that its terms require the joining of Oyen as a party to this suit. See, e.g., DiBlasi v. Aetna Life & Cas. Ins. Co.,
. DI 71, at 19.
.
. Sandman,
. Id.
. Sandman,
. Id.
. Sandman,
. Because Molina could not have brought any of the claims absent the Second Assignment, he stands in Oyen's shoes for the totality of those claims, not simply the portion of damages Oyen stands to receive under their agreements. The Court's equitable estoppel analysis thus pertains to the whole of the claims in the amended complaint.
Nor is it the case, as plaintiff perfunctorily asserts in a single sentence in his memorandum of law, that defendants' judicial estoppel defense does not apply to the "Allstate judgment.” DI 71, at 30-31. As an initial matter, this argument is so underdeveloped that the Court deems it waived. In any event, it lacks merit. The claims here concern conduct in both the underlying case brought by Allstate and the one brought by Oyen because the state court consolidated the two related cases. DI 58-14, at 8. When Molina defaulted, the state court conducted a single inquest. And, under the terms of the Second Assignment, Oyen's control over this suit and his entitlement to its proceeds extend to the entirety of the claims in the amended complaint, not just a portion. Thus, any contention—if the single sentence in the memorandum can be read to make it—that the Court must distinguish between portions of the malpractice claims relating to each of the underlying state cases lacks any legal or factual support.
. See, e.g., Reibman v. Senie,
. See, e.g., Alcman Servs. Corp. v. Bullock,
. See, e.g., DI 67, at 1.
. See DI 58-15, at 4-5 (memorandum decision granting partial summary judgment in underlying actions); DI 58-26 (state court judgment).
. DI 58-47, at 3 (emphasis added).
.DI 67 ¶¶ 47-48.
. DI 58-24.
. Zedner,
. See, e.g., Eagle Ins. Co. v. Facey,
. Zedner,
. Otis v. Arbella Mut. Ins. Co.,
. Enviro. Concern,
. Molina misinterprets Woodson v. Am. Transit Ins. Co.,
. See, e.g., Kim v. O’Sullivan,
.
. See Otis,
. Otis,
