Cavacos v. Sarwar

545 A.2d 46, 313 Md. 248, 1988 Md. LEXIS 106
Court of Appeals of Maryland·Decided August 4, 1988·No. 148, September Term, 1987·Published·Cited by 22 cases

Opinion

*250 MARVIN H. SMITH, Judge,

Specially Assigned.

In this legal malpractice case we shall affirm the judgment of the Court of Special Appeals contained in an unreported opinion in Sarwar v. Cavacos (No. 1364, September Term, 1986, filed August 3, 1987), which held that a trial judge in the Circuit Court for Baltimore City erred in taking the case from the jury at the end of the plaintiffs case. The case involves the sale of real estate and the question of whether the sale was in gross.

Maryland Rule 2-519(b) is applicable. It states:

“When a defendant moves for judgment at the close of the evidence offered by the plaintiff in an action tried by the court, the court may proceed, as the trier of fact, to determine the facts and to render judgment against the plaintiff or may decline to render judgment until the close of all the evidence. When a motion for judgment is made under any other circumstances, the court shall consider all evidence and inferences in the light most favorable to the party against whom the motion is made.”

This was a jury trial. Therefore, the trial judge was required to consider all evidence and inferences in the light most favorable to the plaintiff.

We state the facts as set forth by the Court of Special Appeals:

“Viewed in ... the light most favorable to Sarwar, we will briefly recount the evidence presented. In June of 1980, Sarwar entered into a contract with Zullo Enterprises, Inc. to purchase investment property in Baltimore County. The property was improved by three separate buildings that housed nine apartments. The seller marketed the property on the basis that the nine units produced a certain income. Sarwar concluded that the income to be generated from the property was sufficient to offset the existing expenses plus the anticipated debt service. Additionally, he expected to improve the financial return by installing separate utility meters for each apartment.
*251 “Prior to signing the contract, Sarwar went to the seller’s attorney and insisted that the contract specify the lot size. The parties agreed to and inserted into the contract the words ‘lot size approximately IV2 acres.’ Sarwar stated at trial in response to a question by the court that the size was important to him because it was a waterfront lot and ‘the size of the lot is important from the properties’ value point of view.’
“Shortly thereafter, Sarwar retained the legal services of Cavacos and requested him to ‘check the lot sizes and also the legal use on the property to make sure it was being legally operated.’ 1 Sarwar testified that he told Cavacos that the property was to be used for nine apartments and directed Cavacos to verify that the lot size was as specified in the contract.
“In late July of 1980, Sarwar received correspondence from Cavacos enclosing a letter from the seller’s attorney that disclaimed any independent knowledge of the size of the lot. According to Sarwar, Cavacos assured him prior to the settlement that he had checked the lot size and legal use of the property. In fact, Cavacos did not obtain a survey or other definitive proof of the size of the lot or its legal use.
“Sarwar and Zullo Enterprises, Inc. settled on the property on September 17, 1980. After settlement, Sarwar implemented his plan to facilitate installing separate meters in the apartments by purchasing separate heating units at an expense in excess of $9,000. Before the work was completed, Baltimore County advised Sarwar that the property could not sustain that many apartments due to the size of the lot. The County did, however, grant Sarwar provisional permits to complete installation of the meters and later notified him of the need to register the property as a legal non-conforming use if he wished to continue to use the nine apartments. In the spring of *252 1981, as part of this process, Sarwar ordered a survey of the property. The survey showed the lot size to be .94 acres, which confirmed the County’s contention that the lot size was less than that permitted under the Baltimore County zoning regulations for use of nine apartments. The property’s zoning classification did not permit more than 5.5 dwellings per acre.
“Sarwar sought legal non-conforming use status on the basis that the use predated the adoption of the zoning ordinance. Sarwar did not qualify under this or any other exception and the zoning administrator required Sarwar to cease use of two of the apartments. Sarwar noted an appeal which he later dismissed on advice of counsel.
“Faced with the loss of rental income from the two apartments, Sarwar could not continue the venture and foreclosure proceedings were instituted on the property. The foreclosure was finalized with Zullo Enterprises, Inc. ‘buying in’ the property for substantially less than the mortgage debt. Zullo Enterprises, Inc. thereafter attempted to obtain a deficiency decree against Sarwar. Sarwar was able to negotiate a reduced deficiency and is paying the deficiency decree in installments.
“Sarwar filed a legal malpractice claim against Cavacos for negligence in the legal services he rendered Sarwar. At trial, Geoffrey Foreman, Esquire, an expert who testified for Sarwar, stated that in his opinion, Cavacos failed to render competent legal services. In response to a hypothetical question, he opined that, given the facts as related to and discoverable by Cavacos, a reasonable and prudent attorney would have checked the zoning. Foreman based his opinion on the fact that a discrepancy in the acreage would affect Sarwar’s right to use the property for the nine apartments since most zoning ordinances limit the number of units per acre. Counsel asked Foreman whether the letters written by the seller’s attorney to Cavacos, in addition to other factors, would lead a reasonable and prudent attorney to conduct a zoning *253 check. Foreman answered in the affirmative, indicating that ‘a lot of red flags would be raised in my mind.’ Foreman also expressed the opinion that Sarwar could have rescinded the contract due to the discrepancy in the acreage, notwithstanding the fact that the contract was fully executed.
“Sarwar also presented evidence at trial of damages consisting of his loss of investment, money spent subsequent to the purchase for improvements, zoning proceedings and counsel fees, and the payments on the deficiency. Following the close of Sarwar’s evidence, the trial court entered judgment for Cavacos.”

In a suit against an attorney for negligence, the plaintiff must prove three things in order to recover: (1) The attorney’s employment; (2) his neglect of a reasonable duty; and (3) that such negligence resulted in and was the proximate cause of loss to the client. Wooddy v. Mudd, 258 Md. 234, 237, 265 A.2d 458, 460 (1970), and Kendall v. Rogers, 181 Md. 606, 611-12, 31 A.2d 312, 315 (1943), both quoting Maryland Casualty Co. v.

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Cavacos v. Sarwar, 545 A.2d 46, 313 Md. 248, 1988 Md. LEXIS 106 (Md. 1988).

545 A.2d 46 (Cavacos v. Sarwar) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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