Saturday, April 13, 2013

Simpson v. James case brief

Simpson v. James case brief summary
903 F.2d 372 (5th Cir. 1990)

SYNOPSIS:
Defendant attorneys challenged the decision of the United States District Court for the Eastern District of Texas, which awarded plaintiff client damages for defendants' malpractice. The district court held that defendants were negligent in representing both plaintiff, as the seller, and the buyers in a real estate transaction; and, in subsequently restructuring the buyers' note.

OVERVIEW: On appeal, defendant attorneys contended that the district court erred in awarding plaintiff client damages for their alleged malpractice.

HOLDING:
The court disagreed and affirmed the district court's order.

ANALYSIS:
First, under Fed. R. Civ. P. 8, which governed the pleading requirements in this diversity case, plaintiff pled sufficient facts to put the defense on notice that the discovery rule applied to toll the two year statute of limitations for legal malpractice actions. Second, the evidence was sufficient to uphold the jury's finding that the discovery rule applied because plaintiff had little business experience, defendants reassured her of their loyalty, and plaintiff relief on defendants. Third, the evidence was sufficient for the jury to conclude that an attorney-client relationship existed, as manifested through the parties' conduct. Further, the jury's conclusion that defendants were negligent in representing both plaintiff, as seller, and the buyers in the same transaction, and then subsequently restructuring the buyers' note was not unreasonable. And finally, plaintiff proved that she was damaged by defendants' failure to adequately protect her interests.

OUTCOME: The court affirmed the district court's order awarding damages to plaintiff client for defendant attorneys' malpractice. The evidence was sufficient for the jury to conclude that the discovery rule applied; that an attorney-client relationship existed; that defendants were negligent in representing plaintiff where they had a conflict of interest; and, that plaintiff was damaged because of defendants' failure to protect her interests.

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