Source: https://www.flprobatelitigation.com/2007/08/articles/ethics/1-million-malpractice-award-against-gunster-yoakley-upheld/
Timestamp: 2019-04-23 20:13:13+00:00

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Home » Do the beneficiaries of an estate have standing to sue the decedent’s estate planning attorneys for malpractice?
Do the beneficiaries of an estate have standing to sue the decedent’s estate planning attorneys for malpractice?
Frank Gannett McAdam and Charles McAdam, III, individually, as personal representatives of the Estate of Charles V. McAdam, Jr., and as trustees of The Charles V. McAdam, Jr. Revocable Trust, brought an action against Gunster Yoakley, one of Gunster Yoakley’s probate attorneys and J.P. Morgan Trust Company, N.A., (“J.P.Morgan”). In their complaint, plaintiffs asserted claims of breach of fiduciary duty, constructive fraud, civil conspiracy, negligence and unjust enrichment. The substance of these accusations was that Gunster Yoakley wrongfully procured J.P. Morgan’s appointment as corporate fiduciary and caused the estate administration to be more expensive. As such, plaintiffs sought, among other things, recompense for all “avoidable probate expenses” and disgorgement of all fees paid to Gunster Yoakley by decedent Charles V. McAdam, Jr.
After settling their claims against J.P. Morgan, plaintiffs proceeded against Gunster Yoakley and ultimately won a $1.2 million jury verdict. The trial court, however, granted remittitur and entered final judgment of $1,043,430, including interest and costs.
I’ll get to the legal issues below, but as an initial point I think it’s important to note the case against the decedent’s estate planning attorneys was framed in conflict-of-interests terms. Basically, the case presented to the jury was that the law firm was disloyal to its estate-planning client in order to secretly favor J.P. Morgan. This type of allegation against a lawyer is radioactive. As I’ve reported before [click here], it’s claims of disloyalty — NOT negligence — that will really get you in trouble. Even if the facts show no economic harm was done, juries will crucify you if there’s even a whiff of disloyalty. In the linked-to case the jury originally awarded the plaintiffs $1.2 million — even though they only asked for $1 million! (See here).
[W]e hold that the . . . plaintiffs demonstrated they had standing to bring suit against Gunster Yoakley-Plaintiffs showed that their father’s intent, as expressed in his will, was frustrated by the negligence of Gunster Yoakley and that, as a direct result of such negligence, their legacy was diminished. See Hewko v. Genovese, 730 So.2d 1189, 1192 (Fla. 4th DCA 1999).
 The trial court did not abuse its discretion in denying Gunster Yoakley’s request for jury instruction, nor did the court err in making an award under the “wrongful act doctrine.” See In re Amendment to Rules Regulating Fla. Bar, 605 So.2d 252, 309 (Fla.1992) (providing that rules of professional conduct “are not designed to be a basis for civil liability”); see also Martha A. Gottfried, Inc. v. Amster, 511 So.2d 595, 598 (Fla. 4th DCA 1987) (“Where the wrongful act of the defendant has involved the claimant in litigation with others, and has placed the claimant in such relation with others as makes it necessary to incur expenses to protect its interests, such costs and expenses, including reasonable attorney’s fees upon appropriate proof, may be recovered as an element of damages.”) (quoting Baxter’s Asphalt & Concrete, Inc. v. Liberty County, 406 So.2d 461 (Fla. 1st DCA 1981)), quashed on other grounds, 421 So.2d 505 (Fla.1982).

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