Ferguson v. Cramer

695 A.2d 603, 116 Md. App. 99, 1997 Md. App. LEXIS 114
CourtCourt of Special Appeals of Maryland
DecidedJune 26, 1997
Docket1316, Sept. Term, 1996
StatusPublished
Cited by7 cases

This text of 695 A.2d 603 (Ferguson v. Cramer) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. Cramer, 695 A.2d 603, 116 Md. App. 99, 1997 Md. App. LEXIS 114 (Md. Ct. App. 1997).

Opinion

*101 DAVIS, Judge.

By order dated July 8, 1996, the Circuit Court for Anne Arundel County granted the motion to dismiss filed pursuant to Md. Rule 2-322{b) by appellees Steven J. Cramer, Esq., Thomas G. Bodie, Esq., John J. Nagle, III, Esq., Thomas J. Dolina, Esq., Power & Mosner, P.A., and Bodie, Nagle, Dolina, Smith & Hobbs, P.A. The court’s order dismissed the complaint brought by appellants Kimberly Ann Ferguson, Carolyn Dawn Warner, Cheryl Rene Isensee, and Dennis William Eckes against appellees for legal malpractice. Appellants noted a timely appeal on August 7, 1996, and present the following questions for our review, which we summarize and restate below:

I. Do the beneficiaries of an estate have standing to sue the personal representative’s attorney? 1
II. Did the trial court err when it dismissed appellant’s complaint based on its conclusion that appellants do not have standing to sue appellees for legal malpractice?

FACTS

The instant case comes to us from the trial court’s grant of a motion to dismiss and, as such, the relevant facts are those facts alleged in appellants’ complaint and any exhibits attached thereto. The complaint alleges that appellants are all heirs of the estate of Dennis Webster Eckes (decedent or Mr. Eckes) who died on April 15, 1991. In accordance with the terms of the will, Paula Eckes (Ms. Eckes) was designated as personal representative of decedent’s estate. On April 24, 1991, Ms. Eckes “employed” appellee Steven Cramer “to represent her in handling and administering the estate” of Mr. Eckes. The parties entered into a Client Representation Agreement (Agreement) naming appellee Cramer as the attor *102 ney and Ms. Eckes as “the client.” 2 The Agreement is attached to the complaint as an exhibit. The parties entered the Agreement “for the purpose of representation and all appropriate legal action by the law firm for handling estate [sic] of Dennis Eckes.” The fee was to be set by the court, and Ms. Eckes agreed to “pay all reasonable and necessary costs arising during the handling of this claim.”

Appellants’ complaint also alleges that they, “as the only heirs of the Estate of Dennis Webster Eckes, were specifically intended to be the beneficiaries of Cramer’s service as attorney for the estate of [decedent].” Appellants allege that appellee Cramer had a duty to Ms. Eckes, as personal representative of the estate, to assist her in carrying out her duties, and a duty “to exercise that degree of care and diligence in pursing the administration of the Estate of Dennis Webster Eckes as used by attorneys engaged in the practice of law.” According to appellants’ complaint, when appellee Cramer failed adequately to advise Ms. Eckes on her duties to obtain and file estate inventories, appraisals, and accountings, he “breached the duty owed to [appellants] as beneficiaries of the Estate and has caused [appellants] to suffer long term economic loss as well as economic loss to the Estate.”

Appellants also contend in their complaint that appellee Cramer was negligent in providing legal representation to Ms. Eckes with regard to the estate’s claims against Edgewater Publishing (Edgewater) and Dr. James Beckett, two separate parties that decedent had agreements with relating to the publication of his books and sports memorabilia. Appellants alleged that the mishandling of these estate assets resulted in economic loss to the estate. Moreover, appellants complain that appellee Cramer’s negligence caused them to suffer emo *103 tional trauma and requested judgment, jointly and severally, against appellees in the amount of $3,000,000, plus costs of the suit. Appellants filed exceptions to the first accounting and called on their “own counsel” to handle matters with regard to Edgewater.

Additional information set forth in the parties’ briefs indicate that Ms. Eckes was the ex-wife of decedent and the mother of appellants. Ms. Eckes was not a beneficiary of the estate. On appeal, appellants also contend that certain facts can be inferred from the complaint. One such inference is that Ms. Eckes “hired appellee Cramer with an actual intent and purpose to directly benefit her children.” Appellants also argue that it can be inferred from the well-pled facts that no conflict of interest existed among appellants and Ms. Eckes.

Appellants further assert on appeal that an inference can be drawn from the allegations in the complaint that they were appellee Cramer’s clients. They allege, they say, that when they became concerned that appellee Cramer was receiving trademark payments and copyright royalties from Edgewater, he assured them that no agreements had been made on their behalf and forwarded appellants a proposed letter he addressed to Edgewater demanding further negotiations relative to the payments. Appellants also refer to the allegation that they requested appellee Cramer to obtain any written agreements executed between the parties. Finally, appellants argue on appeal that appellee Cramer was negligent because “he failed to draw any distinction relative to who his clients were.”

DISCUSSION

In reviewing the trial court’s grant of appellees’ motion to dismiss, we assume the truth of all relevant and material wellpled facts, as well as all the inferences that could reasonably be drawn from those facts, in the light most favorable to appellant. Bennett Heating & Air Conditioning v. Nations-Bank, 103 Md.App. 749, 757, 654 A.2d 949 (1995), aff'd in part and rev’d in part, on other grounds, Bennett Heating & Air Conditioning v. NationsBank, 342 Md. 169, 674 A.2d 534 *104 (1996). Thus, our function is to determine whether dismissal was proper as a matter of law—that is, if the pleaded facts fail to state a cause of action. Davis v. DiPino, 387 Md. 642, 648, 655 A.2d 401 (1995). The Court, however, need not consider conclusory charges which have no factual support. Berman v. Karvounis, 308 Md. 259, 265, 518 A.2d 726 (1987).

The issue presented on this appeal is whether beneficiaries of an estate have standing to sue the personal representative’s attorney for legal malpractice. This is an issue of first impression in Maryland. Before reaching our conclusion, we review the history of Maryland law governing an attorney’s liability to third parties, and explore the treatment of this issue by other jurisdictions.

Since 1940, the Court of Appeals has recognized the strict privity rule that an attorney is not liable, in an action arising out of his professional duties, to any one other than his client in the absence of fraud or collusion. Wlodarek v. Thrift, 178 Md. 453, 13 A.2d 774 (1940). In Kendall v. Rogers, 181 Md. 606, 31 A.2d 312

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Bluebook (online)
695 A.2d 603, 116 Md. App. 99, 1997 Md. App. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-cramer-mdctspecapp-1997.