Legal Question in Business Law in New York
lawyer malpractice
My father had 2 houses & was advised by an accountant & lawyer to protect the houses in case he ended up in a nursing home to create a C corp and make my sister & myself the sole stockholders, my father passed away 8/03 & at that time my sister & I have decided to dissolve the corp & each one of us take one house each and put it in our personal name. In November of 2003 when I saw the corp lawyer just wasn't doing anything & I called another lawyer I'd worked with in the past and asked him to get involved to help speed things up, the second lawyer claims everything was done wrong as to how the houses were transferred to the C corp & he�d get with the corp lawyer & setup a game plan, well it�s now the end of May 2004 & everyone passes the buck, when I call & ask the status of everything each lawyer always tells me they�re waiting to hear back from the other lawyer, I�m fed up & like to know if they can be held accountable for all this wasted time or am I simply at their mercy?
5 Answers from Attorneys
Re: lawyer malpractice
Have you WRITTEN to them to simply ask what, and why? Writing a nice, polite, simple letter letter with you questions should hopefully get you a response.
Good Luck
Re: lawyer malpractice
Six or seven months is a long time for nothing to have been done. And it is difficult to understand what could have been done wrong! Was a deed prepared transferring the property from your father to the Corporation? If this was done, I cannot fathom what type of problem your lawyers are having. I would not send a very polite letter - I would send a rather nasty one, demanding a return of the documents. If the deed was not prepared and the transfer was not made, nothing could be done now to correct that problem. The details would have to be examined to understand what is going on.
Re: lawyer malpractice
call both lawyers and discharge them and request that the complete files be sent to your attention immediately. Once a competant lawyer takes a look at them I am sure they will advise you on what to do and how long it should take. Do not accept any excuses from your old attorneys. They must turn over your files immediately upon you r request
Re: lawyer malpractice
I am inclined to agree with Lou. However, without seeing the Deed used to transfer the property and also the corporate formation documents, I cannot opine if anything was done wrong. Presuming that the corporation was properly formed and the stock issued to you and your sister, and a proper Deed prepared and recorded, this should be relatively simple, although there may be some tax consequences, depending upon the values of the houses at the time of transfer to the corporation. Plus, dissolution and liquidation can be somewhat complicated and requires processing documents with the NY Secretary of State and Tax Departments, which can be slightly time consuming. In the worst case scenario, everything was done wrong and the houses are still in your father's name, you need to probate his Will or apply for administration (if there was no Will) in the Surrogate's Court in the County where your father died. Then you can simply prepare new Deeds as administrators of his estate. The probate may also be slightly complicated also, again depending upon the value of the houses at your father's date of death. To properly advise you, I would need to see the corporate documents and the purported Deed. Contact me directly if you need more information or want to discuss the matter. Additionally, if your father's attorney made a mistake, you may have a malpractice claim against him.
Re: lawyer malpractice
You may discharge your attorney at any time and for no reason. Send a letter certified mail asking for the return of all your documents. Then you can retain a corporate tax attorney that concentrates in those areas.
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