In 1984 plaintiff engaged defendant, an attorney, to secure a debt of $19,747.56 owed plaintiff by one of its customers, C & H Trucking, Inc. (hereinafter C & H). Defendant prepared a security agreement naming C & H and Charles and Carolyn Waltz, two individuals involved in the trucking concern, as the debtors and giving plaintiff a security interest in a 1984 Mack truck. Typed language, added to the preprinted form, provided that the debt with interest was payable as follows: "Cash on all oil deliveries plus $500.00 payment on account upon delivery of product to the debtor." This was followed by printed language in the form declaring that the collateral also secured "any other indebtedness or liability of the [d]ebtor to the [s]ecured [p]arty direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, including all future advances or loans which may be made at the option of the [s]ecured [p]arty". The security agreement was executed but defendant failed to perfect it by filing (see, UCC 9-302 [1]). C & H subsequently paid off the debt and for a time had a credit balance with plaintiff. However, by March 1986 when plaintiff learned that the debtors were insolvent, that the Mack truck had been sold and that the debt was unsecured, the outstanding balance due from C & H exceeded $17,000. Although the Waltzes appear to be effectively judgment-proof, defendant has proceeded on plaintiff's behalf against a third individual associated with C & H as either a principal or guarantor.

In the meantime, plaintiff commenced the instant action against defendant sounding in legal malpractice. Plaintiff moved for partial summary judgment on the issue of defendant's liability, but the motion was denied because plaintiff had failed to submit a copy of defendant's answer as required by CPLR 3212 (b). Plaintiff then moved for leave to renew or