Cantey Hanger, Llp v. Philip Gregory Byrd, Lucy Leasing Co., L.L.C., and Pgb Air, Inc.
467 S.W.3d 477 · Texas Supreme Court · 2015
Facts
Following a contentious divorce decree awarding a Piper Seminole aircraft to Simenstad, her former husband, Byrd, sued her attorneys, Cantey Hanger, for fraud. Byrd alleged Cantey Hanger falsified a bill of sale for the aircraft, signing Simenstad as an unauthorized manager of Byrd's company, to shift tax liability to Byrd in contravention of the decree. Cantey Hanger moved for summary judgment based on attorney immunity.
Issue
Does attorney immunity protect a law firm from civil liability to a non-client for allegedly fraudulent conduct, such as falsifying a property transfer document to shift tax liability, when that conduct occurs in the course and scope of representing a client in post-divorce property transfers?
Holding
Yes, the Supreme Court held that Cantey Hanger established its affirmative defense of attorney immunity as a matter of law. The court reversed the court of appeals' judgment, finding that the alleged conduct, though potentially wrongful, fell squarely within the scope of the firm's representation of its client in the divorce proceedings.
Rule
Attorney immunity protects attorneys from civil liability to non-clients for actions taken within the scope of representing a client in litigation, focusing on the "kind" of conduct rather than its meritorious or wrongful nature. Fraud is not an exception to this immunity unless the fraudulent conduct is entirely outside the scope of the attorney's legal representation and foreign to the duties of an attorney.
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Case brief last reviewed . Prepared by CaseReader from the published opinion.