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Stephen v. Sallaz & Gatewood

150 Idaho 521 (2011)

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Stephen v. Sallaz & Gatewood

Idaho Supreme Court
150 Idaho 521 (2011)

Facts

Gary Stephen filed for divorce from Pamela Stephen (plaintiff). Pamela retained Scott Gatewood (defendant) as her attorney for the divorce. Pamela and Gary owned a property known as the Crescent Rim property. In Gary’s answers to interrogatories, he valued the property at $500,000. In Pamela’s answers to interrogatories, she valued the property at $385,500. Gatewood did not inform Pamela of Gary’s higher estimate, and Pamela relied on her estimate of $385,500 during settlement negotiations. The court approved the settlement agreement. Eventually Pamela learned that she had misvalued the property and therefore her part of the settlement was worth less than Gary’s. Pamela sued Gatewood for malpractice, arguing that Gatewood failed to advise her concerning the fair market value of the Crescent Rim property and that Gatewood’s malpractice resulted in a lower property settlement than Pamela would have received otherwise. The trial court found that Gatewood committed malpractice in failing to inform and advise Pamela regarding the Crescent Rim property’s value. Gatewood appealed to the Idaho Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Jones, J.)

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