Justia Professional Malpractice & Ethics Opinion Summaries

Respondent Deborah Spence alleged that attorney Kenneth Wingate breached a fiduciary duty to her as a former client in its handling of her late husband's life insurance policy. Mr. Spence was a member of United States House of Representatives, and he held a life insurance policy.  Mr. Spence named Mrs. Spence and his four sons from a prior marriage as the beneficiaries of the policy, with all five to receive equal shares of the proceeds. Wingate undertook representation of Mrs. Spence with regards to the assets of her husband, her inheritance rights, and her rights in his estate.  Wingate advised Mrs. Spence that she was entitled to nothing from her husband's estate and that she was barred from receiving an elective share by a prenuptial agreement. Wingate advised Mrs. Spence to enter into an agreement with the four adult sons of Mr. Spence to create a trust to provide her with a lifetime income stream. The trust was to be created and funded from one-third of the value of Mr. Spence's probate estate. Mrs. Spence thereafter came to believe that the amount she received under the agreement negotiated by Wingate was much less than what she was entitled to under the will and its codicil or if she had opted for an elective share. Mrs. Spence thereafter brought a lawsuit to set aside the agreement creating the trust. The agreement was eventually set aside. The circuit court granted partial summary judgment in favor of Wingate and found that, "[b]y statute, [Wingate] owed no duty or obligation to [Mrs. Spence] in connection with the congressional life insurance policy or the manner in which it was paid." The Court of Appeals reversed the grant of summary judgment to Wingate and remanded the matter for trial. Upon review, the Supreme Court concluded Wingate owed a fiduciary duty to Mrs. Spence: "[t]his duty included, among other obligations, the obligation not to act in a manner adverse to her interests in matters substantially related to the prior representation.  … we uphold the decision of the Court of Appeals to reverse the grant of summary judgment and remand this matter for trial.  To the extent the Court of Appeals indicated whether a duty was owed was a question of fact for the jury, the decision is modified to recognize that whether a fiduciary relationship exists between two classes of persons is a matter to be determined by a court." View "Spence v. Wingate" on Justia Law

Respondent Atlantic Coast Builders & Contractors, LLC brought an action against Petitioner Laura Lewis for negligent misrepresentation, unjust enrichment, and breach of contract.  In 2003, Petitioner, acting through a leasing agent, entered into a commercial lease whereby Respondent would lease from Petitioner property located in Beaufort County.  Although Petitioner represented in the lease that the property could lawfully be used for a building and construction office, the property was zoned "rural," meaning virtually all commercial uses were prohibited. Respondent occupied the property and made numerous alterations to it. A few months later, a Beaufort County zoning official served Respondent with notice and warning of two violations for Respondent's failure to obtain a certificate of zoning compliance before occupying the premises and its failure to obtain a sign permit before erecting a sign.  Respondent vacated the property, relocated its business, and ceased making rental payments. Respondent then instituted this action. Petitioner denied the allegations and made a counterclaim for breach of contract.  The master in equity entered judgment in favor of Respondent. The Court of Appeals affirmed, finding the master properly granted judgment in favor of Respondent. Upon review, the Supreme Court found that Petitioner did not appeal all grounds on which the master's judgment was based.  Namely, she did not challenge the determination that Respondent was entitled to recover based on unjust enrichment.  Accordingly, the Court affirmed the master-in-equity's and appellate court's decisions in favor of Respondent. View "Atlantic Coast Builders & Contractors v. Lewis" on Justia Law

Respondent Municipal Court Judge Sheryl Polk McKinney's sister, who was the Clerk of the Town of Varnville, was arrested and charged with embezzlement of public funds, forgery, and misconduct in office.  Respondent's sister was accused of issuing checks in Respondent's name, forging respondent's name to the checks and converting the money for her personal use over an eight year period. Upon review, the Supreme Court found that by her misconduct, Respondent violated multiple Canons of the Code of Judicial Conduct (Rule 501, SCACR). The Court found Respondent’s misconduct warranted a suspension from judicial duties.  Respondent was suspended for thirty days.  View "In the Matter of Municipal Court Judge Sheryl Polk McKinney" on Justia Law

After Appellant Donald Brandt produced a fraudulent document in a civil proceeding, a circuit court held Appellant in civil and criminal contempt.  In turn, the court dismissed Appellant's legal malpractice action with prejudice and ordered him to serve six months in jail and pay the defendants' attorneys' fees. In 1998, Appellant sued Elizabeth Gooding and her law firm Gooding & Gooding, P.A. for legal malpractice based on Gooding's representation of him in a real estate transaction.  During the course of discovery, Appellant presented to his attorney a document which appeared to have been sent the lender in the transaction to Appellant on September 18, 1995.  Appellant also provided the letter to his malpractice expert.  The letter was then introduced in the expert's deposition and used by him to opine that Gooding had committed malpractice. The document, if authentic, would have imputed knowledge to Gooding of a conflict of interest related to the representation of Appellant in the real estate transaction.  Gooding, however, claimed the document was fraudulent.  As a result, Gooding requested a hearing to determine whether the document was authentic.  Additionally, Gooding requested the court hold Appellant in contempt and award costs if such authenticity could not be established. Subsequently, based on the fraudulent document, the State indicted Appellant for forgery.  After a jury found Appellant guilty of the indicted offense, the trial judge sentenced Brandt to ten years' imprisonment, suspended upon the service of four years, followed by five years' probation and payment of restitution. On appeal to the Supreme Court, Appellant contended that the trial judge erred in failing to dismiss the forgery indictment and in failing to grant his motion for a directed verdict on the ground that Double Jeopardy barred the forgery prosecution.  Upon review, the Supreme Court found that the State presented sufficient evidence to support a forgery conviction.  Because the forged document did not involve a dollar amount and the State did not present evidence of a definitive dollar amount, the Court held that the trial judge erred in sentencing Appellant for felony forgery. The Court remanded the case back to the circuit court for resentencing. View "South Carolina v. Brandt" on Justia Law