Manhattan Supreme Court and the Thurgood Marshall U.S. Courthouse Manhattan Supreme Court and the Thurgood Marshall U.S. Courthouse at Foley Square. Photo by Rick Kopstein/ALM

The investment arm of a deceased real estate executive is seeking to overturn an arbitration ruling that faulted Herrick Feinstein in a legal malpractice action but did not order the law firm to pay any damages.

Gordon Group Investments, formed by the late Sheldon Gordon, who found success in developing entertainment shopping centers, alleges in a petition filed in Manhattan Supreme Court this week that the ruling of JAMS arbitrator Robert Davidson in a legal malpractice arbitration against Herrick Feinstein disregarded the burden of proof and rendered the arbitration process unfair.

Gordon Group said it retained Herrick Feinstein in late 2009 after it was defrauded by a rogue bond trader who made unauthorized purchases of stock “in an elaborate pump and dump scheme.” Gordon Group said Herrick promptly filed in state court tort and other claims against the trader and others, but waited 13 months before considering the timeliness of the client's contract claim against Fortis Investment Services, a clearing broker that was acquired by BNP Paribas. The claim against Fortis was subject to arbitration before the Financial Industry Regulatory Authority.