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Purpose. Assist attorneys with early case evaluationFactors to consider:MeritsCostsDamagesCostly endeavorDamages must be evaluated at the outset. Elements of a Claim. Case law is well settledFox v. WhiteFour Elements:Existence of A-C relationshipNegligence or breach of contractProximat
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1. Analyzing the Economic Viability of a Legal Malpractice Claim in Missouri
Kevin Jones
2. Purpose Assist attorneys with early case evaluation
Factors to consider:
Merits
Costs
Damages
Costly endeavor
Damages must be evaluated at the outset
3. Elements of a Claim Case law is well settled
Fox v. White
Four Elements:
Existence of A-C relationship
Negligence or breach of contract
Proximate cause
DAMAGES
4. Damages to who? May recover for damages to non-clients
Donahue v. Shugart, Thompson, Kilroy, P.C.
Client must show specific intent
Exception: Johnson v. Sandler, Balkin, Hellman & Weinstein
Standing of non-client determined on case-by-case basis:
Existence of specific intent
Foreseeability
Degree of harm
How proximate?
Burden on legal profession
5. What Theory of Recovery? Damages dependant on theory of recover
Multiple theories:
Negligence
Breach of Contract
Breach of Fiduciary Duty
Other intentional torts (IIED)
Must elect ONE theory to submit to jury
See Ozark Air Lines, Inc. v. Valley Oil Co., L.L.C.
6. What Theory of Recovery? Professional Negligence
Punitive damages!!!
Direct damages dependant on “CWAC”
Pre-judgment interest
Case Law
Fox v. White, 215 S.W.3d 257 (Mo. App. W.D. 2007).
Sharp v. Robberson, 495 S.W.2d 394 (Mo. Banc 1973).
7. What Theory of Recovery? Breach of Contract
Nominal Damages
Hanna v. Darr, 154 S.W.3d 2 (Mo. App. E.D. 2004)
Special Damages
Shirley’s Realty, Inc. v. Hunt, 160 S.W.3d 804 (Mo. App. W.D. 2005).
Benefit of Bargain Damages
Kincaid Enterprises, Inc. v. Porter, 812 S.W.2d 892 (Mo. App. W.D. 1991)
Lost profits
BMK Corp. v. Clayton Corp., 226 S.W.3d 179 (Mo. App. E.D. 2007).
Post-judgment interest
RSMo. § 408.040
8. What Theory of Recovery? Breach of Fiduciary Duty
Difficult to establish
Intentional misconduct
Opens door to plethora of damages
Amounts to “constructive fraud”
Opens door to fraud damages
Attorney’s fees
Punitives
Benefit of bargain
Pre-judgment interest
Case Law
Klemme v. Best, 941 S.W.2d 493 (Mo. 1997).
9. Direct Damages Necessary to prove under negligence theory
Measured by damages sought in the “case within the case”
Necessary to investigate TWO cases:
Underlying action where malpractice was allegedly committed
Present action where recovery for malpractice is sought
Case Law
Stockman v. Frank, 239 S.W.3d 650 (Mo. App. E.D. 2007)
Steward v. Goetz, 945 S.W.2d 520 (Mo. App. E.D. 1997)
10. Interest – Breach of Contract Post-judgment interest – RSMo. § 408.040(1) Interest from date of judgment to date or payment Interest = greater of 9% or amount in contract No pre-judgment interest