Phillips v. Carson
Kansas Supreme Court
731 P.2d 820 (1987)
Thelma Phillips (plaintiff) retained attorney David Carson (defendant) and his firm for her late husband's estate, then personally loaned Carson $200,000 and later $70,000 to help with his finances, taking a mortgage on Carson's property as security; Carson persuaded Phillips to release that mortgage in exchange for a mortgage on a different property, which he then never recorded, using firm staff and resources throughout without ever advising Phillips to get independent counsel. When Carson defaulted and filed for bankruptcy, Phillips sued Carson and his firm; the trial court granted summary judgment against Carson personally but for the firm, finding Carson had acted outside the scope of the firm's ordinary business, and both sides appealed.
Whether an attorney who engages in personal business transactions with a client has likely breached his fiduciary duty by failing to advise the client to seek independent counsel regarding those transactions.