Marsh v. Wallace
United States District Court for the Southern District of Mississippi
666 F. Supp. 2d 651 (2009)
Alden "Bubber" Wallace (codefendant) owed money to his longtime lawyer, John Howell (codefendant), and arranged to repay Howell from the proceeds of selling rental property to Kirk David Marsh (plaintiff); at Wallace's suggestion, Marsh asked Howell to also handle his side of the deal. Howell told Marsh about his debt-repayment arrangement with Wallace but never explained that arrangement created a conflict of interest, and the two never discussed or agreed on the scope of Howell's role in the transaction. After the sale closed, Marsh discovered the property generated less rental income than expected and sued Wallace for fraud and Howell for legal malpractice.
Whether a lawyer who represents the interests of multiple parties to a real estate transaction must ensure that each party understands the scope of his representation.