Marsh v. Wallace

666 F. Supp. 2d 651 (2009)

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Marsh v. Wallace

United States District Court for the Southern District of Mississippi
666 F. Supp. 2d 651 (2009)

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Facts

Alden "Bubber" Wallace (codefendant) owed money to his longtime lawyer, John Howell (codefendant). Wallace arranged with Howell to repay Howell from the proceeds of Wallace's sale of rental property to Kirk David Marsh (plaintiff). At Wallace's suggestion, Marsh asked Howell to handle Marsh's side of the transaction. Before agreeing to do so, Howell informed Marsh of his debt-repayment arrangement with Wallace. However, Howell did not tell Marsh that the arrangement inevitably created a conflict of interest, and the two men never discussed or agreed as to the nature of Howell's legal role in the transaction. The transaction closed successfully. However, Marsh soon found that his newly acquired property produced less rental income than he expected. Marsh sued Wallace and Howell in federal district court for fraud and legal malpractice, respectively.

Rule of Law

Issue

Holding and Reasoning (Lee, J.)

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