Man Sues Baker Botts

On October 10, the executor of the estate of a Houston man who died in September 2010 sued Baker Botts for negligence and negligent misrepresentation.  While handling matters of the estate, the executor, Robert B. Stanfield, realized that the estate owed more than $1 million in gift tax, penalties, and interest to the IRS.  Stanfield alleges that Baker Botts is responsible for the estate-planning error that will now cost the estate over $1 million.  

He claims that Baker Botts drafted Curtis McKallip’s will and life insurance trust in 1985, with the intention to minimize estate and gift taxes to the fullest extent possible.  He then alleges that Baker Botts failed to timely file a Gift Tax Return from 1985 in connection with a $1.1 million transfer to the life insurance trust.  If that had been done, there would not be a gift tax, but since it was not done, the Estate and its beneficiaries were significantly harmed.   He realized that the estate owes more than $1 million in gift tax while handling matters for the estate.  

Stanfield seeks actual damages, attorney fees, costs, and interest.  In addition, he is claiming that the firm violated the Texas Deceptive Trade Practices and Consumer Protection Act.  Under the Act, he is seeking fee forefeiture for “unconscionable fees.” Lastly, he asserts that the statute of limitations does not bar the suit because he filed it within two years of discovering the defendant’s wrongful acts. 

See Brenda Sapino, Baker Botts Sued Over Alleged Estate Planning Error, Texas Lawyer, Oct. 11, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.