Bethenny Frankel Accused of Stalling $2M Malpractice Lawsuit by Former Lawyer: “She’s Abandoned the Case”

Bethenny Frankel’s decade-long legal saga is heating up again, this time with accusations that the reality star herself is the one dragging her feet. The Real Housewives of New York alum is being accused of stalling a $2 million malpractice lawsuit she filed against her former lawyer, with the attorney claiming she’s “abandoned” the case for years.

According to court documents, Jamie Schreck, who represented Frankel in a 2011 real estate transaction, alleges the Skinnygirl mogul has failed to provide available dates to be deposed since 2022. He claims she has not responded to an offer to settle the case for a mere $25,000, a fraction of the $2 million she originally sought.

Schreck’s filing paints a picture of a plaintiff who has lost interest in her own lawsuit, stating Frankel has been “failing to prosecute or do anything on it for nearly four years”.

But shortly after Schreck’s claims surfaced, Frankel and her legal team re-entered the chat. Her current attorney said they are “actively engaging with the case” and dispute the notion that Frankel ever abandoned it.

The back-and-forth marks the latest chapter in a legal battle that dates back nearly a decade. Frankel originally sued Schreck in 2017, demanding $2 million in damages for legal malpractice, breach of fiduciary duties, and improperly notarized documents. The suit stemmed from a trust agreement Schreck drafted in 2011 related to Frankel’s purchase of a $4.95 million New York City condo.

The roots of the lawsuit trace to 2011, when Frankel purchased a 3-bedroom, 3-bathroom, 3,751-square-foot unit at 195 Hudson Street in Manhattan for $4.95 million. She hired Schreck to help her with the purchase and draft a trust for the property.

According to court filings, Frankel wanted the property to be held in her own name, using her own money. But her then-husband Jason Hoppy allegedly requested that the lawyers place the residence in a trust, and Frankel obliged.

The problem? The trust allegedly granted Hoppy “50 percent interest in the premises and the right to occupy the premises and not pay any rent”, despite the fact that Frankel purchased the apartment with her own funds. Frankel claims Schreck never discussed the terms with her, sought any direction from her, or advised her of any potential risks.

To make matters worse, the documents creating the trust in 2011 were notarized by Carol Hoppy, Jason Hoppy’s mother who, Frankel’s lawsuit alleged, was ineligible to work as a notary in New York at the time .

Frankel and Hoppy separated in 2012 after two years of marriage and filed for divorce in 2013. But the proceedings became famously contentious, dragging on for years, largely due to battles over the very same apartment.

Frankel claims the improperly drafted trust caused her to “expend substantial legal fees and other expenses in her divorce proceedings that were otherwise avoidable”. She finally settled her divorce with Hoppy in July 2016 on undisclosed terms, after the Appellate Division ruled they would need to resolve Hoppy’s claim that he and Frankel always intended to share ownership of the unit.

The apartment, which Frankel bought for $4.9 million, sold in 2016 for $6.9 million.

Schreck has consistently denied all allegations of wrongdoing. In response to Frankel’s original lawsuit, he argued that when Frankel hired him, she was still married to Hoppy. He claimed he’s not to blame for any issues and, if Frankel suffered any damages, they would be the result of third parties, including Hoppy himself.

Schreck has also “denied all allegations of wrongdoing” in court filings, pushing back against claims that he failed to act in Frankel’s best interest.

The latest development centers on Schreck’s claim that he offered to settle the entire case for $25,000, a fraction of the $2 million Frankel originally demanded. According to Schreck, Frankel never responded.

But with Frankel’s team now insisting they’re actively engaging, the case may finally move forward after years of dormancy. Whether it proceeds to deposition, settlement, or trial remains to be seen.

This legal battle is just one thread in a complex tapestry of Frankel’s post-divorce life. The Skinnygirl mogul has also faced ongoing issues with Hoppy, including stalking and harassment charges. In 2017, Hoppy was arraigned on additional charges, including third-degree stalking, after Frankel was granted a restraining order following an alleged threat outside their daughter Bryn’s school.

Frankel and Hoppy share custody of their daughter Bryn, now in her teens. The couple’s divorce was finally finalized in 2016, but as this latest legal skirmish shows, the fallout continues to reverberate nearly a decade later.

With Frankel’s team now re-engaging and Schreck pushing for resolution, the case appears poised for movement. But given the history, Frankel first filed this lawsuit in 2017, and Schreck claims she’s been uncooperative since 2022. It’s anyone’s guess how quickly things will progress.

For now, the $2 million question remains: Who’s really stalling?