Collier v. Manring (Mo. Ct. App., W.D., No. WD70268, May 4, 2010)

A Missouri appeals court holds that an attorney who drafted a trust that transferred property contained in an earlier trust without deeds executed by the original trustee may be liable for the original trust beneficiary's attorney fees. Collier v. Manring (Mo. Ct. App., W.D., No. WD70268, May 4, 2010).

John Collier set up a trust with his daughter, Rhonda Haight, as co-trustee. Among other things, the trust provided that after Mr. Collier died, his farm would be put in a trust for his son, Rodney. Later, Mr. Collier hired attorney Edward Manring to change the trust to leave the farm outright to Rodney. Mr. Manring created a separate trust for Rodney. After Mr. Collier died, Mrs. Haight claimed the farm remained in the original trust because she never executed deeds to transfer the property.

Rodney filed a petition with the court that included a claim against Mrs. Haight asking for a declaratory judgment that the property belonged to the new trust and a claim against Mr. Manring for legal malpractice for failing to require Mrs. Haight to approve the transfer of the property. Rodney and Mrs. Haight eventually settled, and Rodney claimed Mr. Manring was required to pay attorney fees. Under state law, attorney fees are recoverable only where authorized by statute except when a breach of duty involves an individual in collateral litigation. The trial court found that the collateral litigation exception did not apply because the claim for legal malpractice was included with the claim against Mrs. Haight. Rodney appealed.

The Missouri Court of Appeals vacates the trial court's opinion, holding that Rodney could be entitled to attorney fees under the collateral litigation exception. The court finds that even though the claims were in the same petition, they were separate claims. The court remands the case to determine if Mr. Manring's actions breached a duty to Mr. Collier and if the attorney fees were a proximate cause of that breach.