Hale v. Groce
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Hale v. Groce | |
Court | Oregon Supreme Court |
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Citation | 304 Or. 281, 744 P.2d 1289 |
Date decided | February 18, 1987 |
Facts
- Mr. Groce = "Groce" = attorney handling the estate plan of Mr. Rogers = defendant
- Ms. Hale = "Hale" = the beneficiary of the estate of Rogers = plaintiff
- Mr. Rogers = benefactor
- Rogers wanted to give Hale $300,000 in the 1980s. So, Groce drafted the estate planning documents.
- Upon the death of Rogers, Hale suddenly noticed that the expected $300,000 wasn't being bequeathed upon her.
Procedural History
- Hale sought judicial correction to the will of Rogers without success.
- Next, Hale sued Groce for damages. In the lawsuit, Hale alleged both negligence & breach of contract.
- Hale lost in the trial court. Groce won.
Issues
Can an attorney who makes a drafting error in a client's estate plan be held liable for breach of contract by the planned recipient who was harmed by the drafting error?
Arguments
Groce argued that he only owed a legal duty of care to his deceased client Rogers. Groce argued that Hale was an outsider (3rd party) with no basis to sue him.
Holding
Yes. Because the planned recipient is the 3rd-party beneficiary of the attorney-client contract, the recipient can pursue a breach-of-contract action against the attorney.
Rule
Justice Linde: Common law traditionally only permitted clients to recover for attorney's negligence--not 3rd parties.
Many states have now departed from this staple of common law. Some states allow liability of the attorney under tort law while others under contract law.
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