Bankruptcy

Nachtrieb v. Law Offices of James M. Kelly, P.C. , 2017 IL App (2d) 160984-U

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In this unpublished opinion, the Second District affirmed the dismissal of a legal malpractice claim for lack of causation.  The court held that the plaintiff lacked standing to assert the underlying claim that his lawyer allegedly committed malpractice by failing to bring on his behalf.  Because the plaintiff had filed for bankruptcy and been discharged, the bankruptcy trustee owned the underlying claim.  As a result, the plaintiff’s lawyer could not have asserted it on the plaintiff’s behalf and, therefore,  did not damage the plaintiff by failing to do so.

Nachtrieb v. Law Offices of James M. Kelly, P.C., 2017 IL App (2d) 160984-U

(This is for informational purposes and is not legal advice.)

 

Recent Illinois Case: Bay Industrial Safety Services, Inc. v. Robert Wilson

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The Southern District of Illinois held that the assignment of a malpractice claim that occurred when a plaintiff filed for bankruptcy did not violate the rule against assigning malpractice claims, and that the Chapter 11 debtor-in-possession maintained standing to prosecute the claim for the benefit of the bankruptcy estate.

Bay Industrial Safety Services, Inc. v. Robert Wilson, 2016 WL 3541389

(This is for informational purposes and is not legal advice.)

Recent Illinois Case: In re Jahrling

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The Seventh Circuit affirmed a holding that the defendant attorney’s malpractice constituted “defalcation in a fiduciary capacity” and, thus, was not dischargeable in bankruptcy.  The attorney and client did not share a common language, and the attorney relied on opposing counsel to translate in connection with a real estate transaction in which his client was defrauded.

(This is for informational purposes and is not legal advice.)

In re John C. Jahrling, 2016 WL 1073240