McLane v. Russell

Grace and Helen Shugart, two unmarried sisters, owned a farm. In 1958, with the assistance of attorney Fred Russell of the law firm Johnson, Martin & Russell (collectively, Russell) (defendants), Grace and Helen placed the farm into joint tenancy ownership with right of survivorship. Cecil McLane (plaintiff) and his son, Keith McLane (plaintiff), were tenants on the farm for decades. After Helen was adjudicated incompetent, Grace asked Russell to draft a new will for herself. In 1975 the will Russell prepared for Grace provided that upon Grace’s death, Cecil would have a life estate in her interest in the farm, and upon the death of Cecil, Keith would get the remainder of Grace’s interest in the farm. Russell did not advise Grace that she would need to sever her joint tenancy with survivorship rights for the will to take effect if Grace predeceased Helen. Russell told Cecil that Cecil would get a life estate in Grace’s interest of the farm, and that if Helen predeceased Grace, then Cecil would get the entire farm instead of just half an interest. Several other witnesses also understood that Grace intended to devise her half interest in the farm to the McLanes. Grace died in 1977. Because the joint tenancy remained, Grace’s interest in the farm passed to Helen. Upon Helen’s death, the farm transferred to Grace and Helen’s cousins rather than the McLanes. The McLanes filed a malpractice action against Russell claiming that they were intended beneficiaries of the attorney-client relationship between Grace and Russell. Following trial, the jury awarded the McLanes an amount that was one-half the value of the farm. The appellate court affirmed, and Russell appealed.