Justia Professional Malpractice & Ethics Opinion Summaries

This matter involved a supposed "asset protection trust" (Henry's trust) settled by and for the benefit of respondent where petitioner, BNY Mellon Trust of Delaware (BNY), held a demand note representing a several hundred thousand dollar loan BNY had made to respondent, secured by the assets of his mother's estate and trust. At issue was whether BNY was entitled to summary judgment on the issue of breach of fiduciary duty in its management of Henry's trust. The court held that respondents failed to articulate a theory, and have failed to allege any specific facts, which would indicate that BNY acted in bad faith. The court also held that because respondent had failed to allege facts indicating that BNY's decision to pledge trust assets, and to liquidate and hold trust assets in cash, were taken in bad faith, summary judgment on the remaining fiduciary claims was appropriate. View "The Irrevocable Asset Protection Trust of Henry C. Rohlf" on Justia Law

Petitioners appealed from a Memorandum and Order and Final Order of Forfeiture entered by the district court dismissing their petition for an ancillary hearing and rejecting their claim as beneficiaries of a putative constructive trust in defendant's forfeiture assets. At issue was whether the remission provision of 21 U.S.C. 853(i) precluded the imposition of a constructive trust in petitioners' favor and whether imposing a constructive trust would be consistent with a forfeiture statutory scheme provided by section 853. Because the court concluded that section 853(i) did not preclude, as a matter of law, recognizing a constructive trust and because a constructive trust was not inconsistent with the forfeiture statute, the court vacated the Final Order of Forfeiture and remanded the case to the district court to consider whether, pursuant to Vermont law, a constructive trust should be recognized in favor of petitioners. View "United States v. MacKay, et al." on Justia Law

Plaintiff-Appellant Mary Soignier appealed a district court's decision that granted summary judgment to her former attorney, W. Kent Fletcher. On appeal to the Supreme Court, Plaintiff asserted that Attorney Fletcher negligently drafted a will that failed to "adequately effectuate the testator's intent." After reviewing the record and the applicable legal authority, the Supreme Court found that the district court correctly granted summary judgment to Mr. Fletcher. The Court affirmed the district court's judgment.

Plaintiff Virginia Sharkey appealed the dismissal of her legal malpractice claim against Defendant Attorney George Prescott. Plaintiff and her husband retained Attorney Prescott to prepare an estate plan. Mr. Prescott established a trust indenture that the Sharkeys executed in 1999. Subsequently, the Sharkeys signed a quitclaim deed, also prepared by Mr. Prescott, which conveyed two lots of land they owned to the trust. Plaintiff asserted that the trust was set up to care for the surviving spouse. Mr. Prescott sent Plaintiff a letter shortly thereafter, memorializing the actions he took on their behalf. Mr. Sharkey died in 2002. In 2003, Plaintiff wanted to sell one of the two lots conveyed to the trust. The local authority told Plaintiff that because both lots were conveyed to the trust, they effectively merged together, and could not be sold as she intended. In 2006, Plaintiff sought access to trust funds. The bank informed Plaintiff that she was not able to get access as she had intended. These two instances lead Plaintiff to believe that Mr. Prescott was negligent in the performance of his duties as her attorney. In 2009, Plaintiff brought suit against Mr. Prescott. Mr. Prescott moved to dismiss the case, arguing that Plaintiffâs claims against him were time-barred. The trial court dismissed Plaintiff's case as time barred. After a review of the case, the Supreme Court found that the trial court erred in granting summary judgment with regard to the letter Mr. Prescott sent memorializing the trust set-up. The Court reasoned that because Plaintiff claims she did not receive the letter, this created a "genuine issue of fact" that could not withstand a grant of summary judgment. For this, the Court reversed the trial courtâs decision, but affirmed it on all other respects. The case therefore, was remanded for further proceedings.