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Noble v. Bruce5/21/1998
First Federal intended to benefit the Flahertys ... whether that intent was the primary purpose of the transaction or relationship." Flaherty, 303 Md. at 137, 492 A.2d at 628. This Court also recognized that conflicts of interest may arise where an attorney represents both the mortgagor and mortgagee, but concluded that the Flahertys had asserted facts in their complaint that raised an inference that no conflict existed between their interests and First Federal's interests. Flaherty, 303 Md. at 138, 492 A.2d at 629.
Other jurisdictions have taken similar positions as this Court did in Flaherty that, in order for an attorney to owe a duty to a non-client, the non-client must show that the intent of the client to benefit the non-client was a direct purpose of the transaction or relationship. See, e.g., Jewish Hosp. v. Boatmen's Nat. Bank, 633 N.E.2d 1267, 1275 (Ill. App. Ct.)(noting that the non-client must prove that the primary purpose and intent of the attorney-client relationship was to benefit or influence the non-client), appeal denied, 642 N.E.2d 1282 (Ill. 1994); see also Needham v. Hamilton, 459 A.2d 1060, 1062 (D.C. 1983)(holding that a "direct and intended beneficiary" of a will may maintain a legal malpractice action against the attorney who drafted will); Schreiner v. Scoville, 410 N.W.2d 679, 682 (Iowa 1987)(noting that an attorney owes a duty of care only to the "direct, intended, and specifically identifiable beneficiaries of the testator as expressed in the testator's testamentary instruments").
In the Noble case, the Court of Special Appeals stated that the Flaherty rule is "generally applicable to all third party beneficiary/attorney malpractice claims." Although the Noble beneficiaries alleged in their complaint that they were the intended beneficiaries of the contract between the Longs and Bruce, the intermediate appellate court concluded that such a claim on its own did not satisfy the elements of a cause of action for attorney malpractice. The intermediate appellate court stated that additional elements set forth in Kirgan, and later reiterated in Layman v. Layman, 84 Md. App. 183, 190, 578 A.2d 314, 317 (1990), were required. Specifically,
"a testamentary beneficiary (or one claiming to be an intended beneficiary) has no cause of action against the testator's attorney for alleged negligence in drafting the will when, as in this case, the will is valid, the testamentary intent as expressed in the will has been carried out, and there is no concession of error by the attorney." (Emphasis in original).
Kirgan, 60 Md. App. at 12-13, 478 A.2d at 718-19. Similarly, the trial court in Fauntleroy applied the Kirgan test in reaching its decision.
In Kirgan, Mary Kirgan alleged that her friend, Clarence M. Plitt (the testator), had told her that he would change his will in her favor. Kirgan, 60 Md. App. at 4, 478 A.2d at 714. Kirgan had referred the testator to her attorney. Id. When Plitt died, his bequest to Kirgan left her approximately $7000 worth of furniture and other chattels. Id. The will bequeathed the rest of the estate valued at approximately $5 million to a charitable trust and designated Kirgan and First National Bank of Maryland as co-trustees. Id. Kirgan filed suit against the attorney alleging, inter alia, negligence in the preparation of the testator's will in failing to provide for Kirgan in the will as the testator intended and negligence under a third-party beneficiary contract theory. Kirgan, 60 Md. App. at 5, 478 A.2d at 715.
Because of the circumstances of the case, the Court of Special Appeals left open the general question of whether a testamentary beneficiary can maintain a legal malpractice action in M
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