New York Court Addresses Estate Planning Malpractice
Decedent bequeathed half of his estate to his wife, Plaintiff. Plaintiff sued, arguing that Defedants committed malpractice by failing to remind decedent of a separation agreement from a prior marriage. Plaintiff alleged that as a result, the agreement was not figured into decedent’s plan for Plaintiff’s inheritance and plaintiff lost $9 million as a result.
Defendants moved for summary judgment, arguing there was no attorney-client relationship between Defendants and Plaintiff. Plaintiff argued there was such a relationship and alternatively, Plaintiff argued there was a relationship of “near privity” that permitted her claim.
The court held that although Defendants made separate estate plans for both Plaintiff and decedent and represented them jointly on other issues, there was no joint estate plan to create an attorney-client relationship. Despite a letter from Defendants to Plaintiff with regard to a change to decedent’s will, there was insufficient contact to establish “near privity.”
According to Mark Fass, “this decision raises the question of who, if anyone, may sue in New York for malpractice when attorneys make mistakes in planning estates.” Widow Lacks Standing to Sue Husband’s Lawyers Over Mishandled Will, Judge Finds, NY L.J., July 10, 2009;
See Leff v. Fullbright & Jaworski, LLP, 2009 NY Slip Op. 31445(U) (NY County June 30, 2009); See also
Special thanks to Bridget J. Crawford (Professor of Law and Associate Dean for Research and Faculty Development, Pace Law School) for bringing this case to my attention.