Opinion ID: 1734047
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Heading: Claim of Legal Malpractice.

Text: To establish a prima facie claim of legal malpractice, the plaintiffs must produce substantial evidence that shows: (1) the existence of an attorney-client relationship giving rise to a duty, (2) the attorney, either by an act or failure to act, violated or breached that duty, (3) the attorney's breach of duty proximately caused injury to the client, and (4) the client sustained actual injury, loss, or damage. Vande Kop, 528 N.W.2d at 611 (citation omitted). The failure to prove any one of these four elements defeats recovery for the plaintiffs.
An attorney is generally liable for malpractice only to a client. Schreiner v. Scoville, 410 N.W.2d 679, 681 (Iowa 1987). We recognize a trend, however, to allow some relaxation of the privity requirement under severely limited circumstances. Id. Courts have been willing to recognize a claim by an heir or testamentary beneficiary when the testamentary instrument is rendered invalid as a direct result of attorney error. Id. at 682. A third-party legal malpractice claimant must be a direct and intended beneficiary of the lawyer's services. Brody v. Ruby, 267 N.W.2d 902, 906 (Iowa 1978). Obviously, this exception does not apply in this suit against Tom Jenk because he did not prepare the assignment. An attorney designated for an estate is charged with the duty of commencing probate proceedings in a timely manner and overseeing administration of the estate. Committee on Professional Ethics & Conduct v. Elson, 430 N.W.2d 113, 114 (Iowa 1988). Although the estate attorney is hired by an executor or administrator, his obligations, like those of the fiduciary, extend to the estate and all other distributees. See Schmitz, 528 N.W.2d at 115-17 (attorney breached duty owed to beneficiaries to exercise reasonable skill and care in handling an estate). Gertrude and Rosella contend Jenk had a duty to correctly advise them concerning the nature and extent of their property rights in the Ruden real estate contract. They also claim he had a duty to advise them as to their potential malpractice claim against Max Jenk's estate and the applicable statute of limitations. Additionally they urge Jenk had a duty to advise them as to a potential conflict of interest arising from Jenk's interest in his father's estate. Because Jenk breached these duties, they maintain Frank's intent to convey his interest in the real estate contract to them was frustrated and their claim against Max Jenk was lost. We agree Tom Jenk had a duty to advise the administrators as to the legal validity of the assignment. It is his duty as attorney to use such skill, prudence and diligence as lawyers of ordinary skill and capacity commonly possess and exercise in performing the task he undertakes. Millwright v. Romer, 322 N.W.2d 30, 32 (Iowa 1982). Although the Iowa Code of Professional Responsibility for Lawyers does not undertake to define standards of civil liability, it constitutes some evidence of negligence. See Menzel v. Morse, 362 N.W.2d 465, 471 (Iowa 1985) (Standards of conduct and practice may be evidenced by ... the Code of Professional Responsibility for Lawyers.) (citation omitted). To handle a legal matter without preparation adequate in the circumstances is a violation of the disciplinary rules. See DR 6-101(A); Committee on Professional Ethics & Conduct v. Nadler, 467 N.W.2d 250, 253 (Iowa 1991). A lawyer must exercise independent professional judgment on behalf of a client. A lawyer should not accept employment if the exercise of professional judgment may be affected by the lawyer's own financial or personal interests. See DR 5-101(A); Committee on Professional Ethics & Conduct v. Hall, 463 N.W.2d 30, 34 (Iowa 1990). A lawyer must decline employment if the exercise of independent professional judgment on behalf of the client is likely to be adversely affected by the acceptance of employment except with the consent of the client. See DR 5-105(B); Committee on Professional Ethics & Conduct v. Jackson, 492 N.W.2d 430, 434 (Iowa 1992). Likewise, a lawyer must withdraw as counsel if the exercise of independent professional judgment on behalf of a client is likely to be adversely affected by the representation of another client unless each consents after full disclosure. See DR 5-105(C); Id. at 435; Committee on Professional Ethics & Conduct v. Oehler, 350 N.W.2d 195, 199 (Iowa 1984). Clearly there is a factual issue as to the existence of an attorney-client relationship between Jenk and the plaintiffs personally. Likewise, there is a factual issue as to whether the duties arising from the relationship were violated or breached. Both parties identified experts in support of their position on the existence of the attorney-client relationship and the breach of the duties arising from the relationship. Jenk would not be entitled to summary judgment upon these elements of the malpractice claim. We next review the undisputed facts as to proximate cause of the breach and the actual injury, loss, or damage sustained to determine if Jenk is entitled to judgment as a matter of law.
In answer to an interrogatory, Gertrude and Rosella described the damage caused by Jenk's negligence as the loss of the seller's interest in the land contract on the tavern, valued in the estate as $24,015.36. To recover damages, they must show that, but for the attorney's negligence, the loss would not have occurred. Blackhawk, 428 N.W.2d at 290. Was the breach of a duty to correctly advise them concerning the validity of the assignment and their property right in the real estate contract a proximate cause of their loss? We think not. As expressed by the district court, Jenk may have given temporary false hope, but that does not constitute prima facie showing of a duty breached causing their injury. The probate court properly held that the assignment was never valid. If Jenk had immediately correctly advised them of the invalidity of the assignment, their property interest in the real estate contract would not have changed. The alleged breach was not a proximate cause of damage to them. Was the breach of a duty to advise them as to their potential malpractice claim against Max Jenk's estate and the applicable statute of limitations a proximate cause of their loss? We think not. It is an undisputed fact that Gertrude and Rosella employed Bitter to represent their individual interests in the Ruden estate in October 1990. He agreed to represent them although it was his opinion that the assignment was a nullity. He informed them that any lawyer should have known the assignment was void. He indicated to his clients that he did not want to handle a malpractice case against another lawyer. He mentioned it was malpractice to draft the assignment and not deliver it but that he was not interested in pursuing it. Jenk told the administrators he was not going to continue as attorney for the estate in February 1991. The court approved his withdrawal in March. A petition to reopen the Max Jenk estate to permit a malpractice claim to be filed could have been filed until July 29, 1991. Jenk's alleged negligence in failing to advise his clients of the potential claim in the Max Jenk's estate is not a proximate cause of damage if a successor attorney is employed and he advises them of the potential malpractice claim at a time when such a claim is not barred by the statutory limitation on reopening of the estate. See Steketee v. Lintz, Williams & Rothberg, 38 Cal.3d 46, 210 Cal. Rptr. 781, 787, 694 P.2d 1153, 1159 (1985) (An attorney cannot be held liable for failing to file an action prior to the expiration of the statute of limitations if he ceased to represent the client and was replaced by other counsel before the statute ran on the client's action.). Likewise, was the failure to promptly withdraw as counsel a proximate cause of the loss? We think not. Under the undisputed facts of this case, Gertrude and Rosella had sufficient time to engage a new attorney to reopen the estate for the purpose of filing a malpractice claim.