MEMORANDUM ORDER On January 2, 2024, defendants, Timothy Blum and Blum & Poe, LLC, moved to dismiss the First Amended Complaint (“FAC”) in its entirety. See Notice of Mot. to Dismiss the First Am. Compl., ECF No. 18. On March 4, 2024, the Court dismissed the breach of contract and account stated claims with prejudice but permitted the quantum meruit claim to proceed against the corporate defendant, Blum & Poe, LLC. See 3/4/24 Order, ECF No. 24. The Court, however, reserved ruling on whether to dismiss the quantum meruit claim against defendant, Timothy Blum, and promised a decision on that issue by March 15, 2024. Id. The Court then dismissed the quantum meruit claim against Mr. Blum by “bottom-line” order dated March 15, 2024. See 3/15/24 Order, ECF No. 26. This Opinion reconfirms that order and explains the reasons for that ruling. I. Plaintiff’s Allegations In 1994, defendant, Timothy Blum, and non-party, Jeff Poe, ‘”co-founded” defendant, Blum & Poe, LLC and served as “co-principals and/or co-owners” of the company. FAC, 9, ECF No. 17. Defendant Blum & Poe, LLC is incorporated in California. Id. 3. In September 2018, Mr. Poe sought legal advice from plaintiff, Aaron Richard Golub, Esq., on behalf of Blum & Poe, LLC “regarding sales tax disputes with the New York State Department of Taxation and Finance,” which carried a “potential sales tax liability…in excess of $4,700,000.” Id.
12-13. Mr. Golub then allegedly told Mr. Poe that his firm’s “legal retainer for legal services in connection with [the] New York State sales tax issues would be no less than $150,000,” which Mr. Poe acknowledged. Id. 14. There are no allegations that Mr. Poe entered into a written retainer agreement with Mr. Golub for the provision of these services. From 2018 until the sales tax issue was resolved in 2023, Mr. Golub provided legal advice to Mr. Poe and consulted with the accountant (David Lifson) and other lawyers (Art Rosen and Katie Quinn), whom Blum & Poe, LLC retained to assist in resolving their sales tax dispute with the New York State Department of Taxation and Finance. Id.
