Attorney Guilty of Financial Elder Abuse

A California appeals court rules that there was enough evidence for a jury to find an attorney guilty of elder financial abuse after the attorney assisted a trustee in selling a house that a nursing home resident had a life estate in without giving the resident any of the proceeds. McQueen v. Drumgoole (Cal. Ct. App., No. A126825, March 14, 2011).

When Earl Blacksher died in 1990, he left his family home in trust for the lifetime benefit of his elderly daughter Ida McQueen, who has severe physical and mental disabilities. After Ms. McQueen moved into a skilled nursing facility, the trustee's attorney, Carol Veres Reed, had her sign a power of attorney in favor of the trustee. Then the trustee of her trust sold the home for $240,000. The trustee, acting on advice of Ms. Reed, distributed the funds to the remainder beneficiaries without ever informing Ms. McQueen of the sale or giving her a share.

A conservator was appointed for Ms. McQueen and she instigated a lawsuit against the trustee, Ms. Reed, and the family members who received the sale proceeds. A jury awarded Ms. McQueen damages and Ms. Reed was found liable for elder abuse and ordered to pay $320,748 for attorneys' fees and costs. Ms. Reed appealed, arguing that she did not have a fiduciary duty to Ms. McQueen and that the jury should not have heard instructions in the language of the Rules of Professional Conduct.

The California Court of Appeals affirms, holding that there was enough evidence for the jury to conclude Ms. Reed violated her fiduciary duty. According to the court, Ms. Reed advised family members to sell the house and took responsibility for deciding how profits should be distributed as well as procuring a power of attorney from Ms. McQueen, so a jury could conclude that Ms. Reed appropriated Ms. McQueen's property. The court also rules that Ms. McQueen did owe a fiduciary duty to beneficiaries of the trust and that the rules of professional conduct were relevant because they helped to define her duty.

For the full text of this decision, go to:  https://caselaw.findlaw.com/ca-court-of-appeal/1552752.html

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