Personal Representatives Sue Law Firm for Increased Administration Costs Due to Wrongful Appointment of a Trust Company

In a recent Florida case Gunster, Yoakley & Stewart, P.A. v. McAdam, Nos. 4D06-1594, 4D06-1624 (Fla. Dist. Ct. App. Aug. 22, 2007), the plaintiffs, individually and in their capacity as personal representatives and trustees, sued the law firm of Gunster, Yoakley & Stewart, P.A., one of the firm’s probate attorneys, and JP Morgan asserting breach of fiduciary duty, constructive fraud, civil conspiracy, negligence, and unjust enrichment.

The crux of the plaintiffs’ claim was that Gunster Yoakley wrongfully procured J.P. Morgan’s appointment as corporate fiduciary and caused the estate administration to be more expensive. The trial court entered a judgment for the plaintiffs in the amount of $1,043,430 and the appellate court affirmed.

Some of the main holdings of this case include the following:

• Plaintiffs could collaterally attack wrongful appointment of a corporate fiduciary by bringing action against Gunster Yoakley because relief was not available to them in probate.
• The trial court correctly submitted to the jury the question of whether Gunster Yoakley had a duty to fund a revocable trust during decedent’s lifetime.
• Plaintiffs had standing to sue Gunster Yoakley because they demonstrated that the firm’s negligence frustrated decedent’s intent, diminishing their legacy.