Gale v. Williams

701 N.E.2d 808, 299 Ill. App. 3d 381
CourtAppellate Court of Illinois
DecidedAugust 31, 1998
Docket3-97-1008
StatusPublished
Cited by11 cases

This text of 701 N.E.2d 808 (Gale v. Williams) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gale v. Williams, 701 N.E.2d 808, 299 Ill. App. 3d 381 (Ill. Ct. App. 1998).

Opinion

JUSTICE SLATER

delivered the opinion of the court:

Plaintiff Ruth Gale, mother of decedent Dennis Gale, brought a legal malpractice claim against defendant attorney Dick Williams, who represented decedent in a divorce proceeding. Plaintiffs complaint alleged that defendant was negligent in his representation of Dennis Gale. Count I was brought by Ruth Gale, individually, and count II was brought by Ruth Gale in her capacity as administrator of the estate of Dennis Gale. The court granted defendant Williams’ motion to dismiss and found that plaintiffs count I failed to state a claim for legal malpractice and count II was time-barred by the applicable statute of limitations. Plaintiff appeals.

FACTS

Defendant Dick Williams represented Dennis Gale, deceased, in a divorce proceeding between Dennis and his then wife, Mary Gale. A decree for divorce was entered on March 24, 1994. Dennis Gale died intestate on May 29, 1995, and his mother became administrator of his estate.

Plaintiff’s allegations of legal malpractice stem from an “All Benefits Plan” beneficiary designation form, dated September 26, 1985, and signed by Dennis Gale, in which Dennis Gale designated beneficiaries for certain employer-provided plans, including group life insurance, employee thrift and a pension/retirement plan. Mary Gale is the primary beneficiary and Ruth Gale is designated as the contingent beneficiary.

It is undisputed that defendant had no knowledge of the “All Benefits Plan” form. Dennis Gale knew of the existence of the form and he signed the divorce decree, which contained no provisions requiring any change in the beneficiary designations of the employer-provided plans. The qualified domestic relations orders (QDROs), prepared by defendant after the entry of judgment of dissolution, as well as other post-divorce correspondence between defendant and decedent’s employer, did not involve a change of beneficiaries for any employer-provided plan.

Plaintiff alleges however, that, as part of defendant’s representation of the deceased in the divorce proceedings, defendant was obligated to change the beneficiary designation to name her, Ruth Gale, as the primary beneficiary to the employer-sponsored plans. Additionally, as administrator of the estate of Dennis Gale, plaintiff claims that defendant had a duty to name the estate as the primary beneficiary to the employer-provided plans.

Defendant filed a motion to dismiss plaintiffs complaint on the basis that Ruth Gale, individually, lacked standing to bring a legal malpractice claim, and that the estate’s claim was time-barred by the two-year statute of limitations. The trial court granted defendant’s motion and dismissed plaintiffs complaint with prejudice. We affirm.

ANALYSIS

In resolving a motion to dismiss, a court must assume that all well-pleaded facts are true and may consider all reasonable inferences that can be drawn from those facts. Williams v. Board of Education, 222 Ill. App. 3d 559, 584 N.E.2d 257 (1991). Mere conclusions of law and unsupported conclusions of fact are not to be considered. Gilbert Brothers, Inc. v. Gilbert, 258 Ill. App. 3d 395, 630 N.E.2d 189 (1994). A motion to dismiss should only be granted where it clearly appears that no set of facts can be proved that will entitle plaintiff to recover. Ogle v. Fuiten, 102 Ill. 2d 356, 466 N.E.2d 224 (1984). The review of an order dismissing a complaint is de novo. Zelenka v. Krone, 294 Ill. App. 3d 248, 689 N.E.2d 1154 (1997).

I

The first issue we address is whether defendant attorney owed a duty of reasonable care to the nonclient plaintiff.

In order to state a legally sufficient claim for negligence, a plaintiff must set out facts that establish the existence of a duty owed by the defendant to the plaintiff, a breach of that duty, and an injury proximately caused by that breach. Pelham v. Griesheimer, 92 Ill. 2d 13, 440 N.E.2d 96 (1982). Whether a duty exists is a question of law for the determination of the trial court. McLane v. Russell, 131 Ill. 2d 509, 546 N.E.2d 499 (1989). To conclude that a duty exists, the trial court must find that the defendant and the plaintiff stood in such a relationship to one another that the law imposed upon the defendant an obligation of reasonable conduct for the benefit of the plaintiff. Pelham, 92 Ill. 2d 13, 440 N.E.2d 96.

The general rule in Illinois is that an attorney can only be liable in negligence to his client and not to nonclient third parties. Pelham, 92 Ill. 2d 13, 440 N.E.2d 96. A contract for professional services between an attorney and a client does not create a professional obligation between the attorney and a third party (Byron Chamber of Commerce, Inc. v. Long, 92 Ill. App. 3d 864, 415 N.E.2d 1361 (1981)), unless the attorney was hired by the client with the intent and purpose of benefitting that third party (Pelham, 92 Ill. 2d 13, 440 N.E.2d 96).

The exception carved out by the Pelham court expands an attorney’s liability to nonclients but only in certain limited circumstances. The “key consideration” for determining if the attorney owes a duty to the third party is whether the attorney “act[ed] at the direction of or on behalf of the client to benefit or influence [the] third party.” Pelham, 92 Ill. 2d at 21, 440 N.E.2d at 100. In other words, for a nonclient plaintiff to succeed in a negligence action against an attorney, the nonclient must prove that the primary intent and purpose of the attorney-client relationship was to benefit or influence the non-client. Pelham, 92 Ill. 2d 13, 440 N.E.2d 96.

Applying these principles to the facts of this case, we find that the primary and direct reason that decedent hired attorney Williams was to obtain a divorce, not to represent plaintiffs interests. No facts were introduced that would establish any duty owed by defendant attorney to plaintiff or that plaintiff was the intended beneficiary of the attorney-client relationship. Plaintiff simply cannot allege that the primary reason her son hired the defendant attorney was to change her status from contingent beneficiary on the employer-provided plans to primary beneficiary. At best, plaintiff is only an incidental beneficiary of the attorney-client relationship, and an incidental beneficiary is not qualified to bring a malpractice action of this character. York v. Stiefel, 99 Ill. 2d 312, 458 N.E.2d 488 (1983).

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Bluebook (online)
701 N.E.2d 808, 299 Ill. App. 3d 381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gale-v-williams-illappct-1998.