Legal Question in Legal Malpractice in New Jersey

Legal ethics issue

I had a liquor audit (restaurant) in '96 which was being negotiated with the state of NJ. During that time I sold my home, the state mandated the amount of the tax obligation be held in escrow until settled. One week later I sold the restaurant to my son and my attorney (they had an LLC) they bought the property with the tax obligation attached (follows the property) we reduced the price of the business the amount of the tax, but were still trying to settle with the state. My son and my attorney split up, the attorney stayed in the business a few more months then decided to sell, the new buyer would not buy the property with tax issue not settled, our attorney wired the money to the state at settlement to pay the tax and sold the property. He then put a claim in against the title company who in turn paid him (he said he knew nothing of the taxes) and now we are in litigation with the title company. By paying the tax he ended our ability to negotiate with the state, plus we reduced the price for it anyway. Now we have a court date with the title company and the attorney will swear under oath he knew nothing of the taxes, when he is the one who recommended an accountant and an attorney to recoup the taxes from NJ. Any ideas?


Asked on 8/04/04, 1:50 pm

1 Answer from Attorneys
Scott Diamond DIAMONDLAWYER

Re: Legal ethics issue

You need to get an attny invloved asap. this is compolicated stuff and you need to sue the attny right away otherwise you may ose your claim. It is also unethical for anaattny to be partners with a client under certain circumstances. Let me know the County of venuye and the name of the attny. I may be able to help you find soemone right for the job.

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Answered on 8/04/04, 2:09 pm


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