Stake v. Harlan

Summary

In Stake v. Harlan, 529 So.2d 1183 (Fla. 2d DCA 1988), the court held that an attorney who has actual knowledge of a certified question pending before the Florida Supreme Court that could materially affect a client’s interests has a duty to inform the client of the potential change in the law, even though attorneys generally are not required to predict changes in the law. The case involved a legal malpractice claim where the attorney advised clients to proceed with a “quiet assumption” of a mortgage containing a due-on-sale clause while the enforceability of such clauses was under review; the supreme court later upheld the clause, resulting in foreclosure. The appellate court reversed the dismissal of the complaint, ruling that the allegations stated a cause of action for breach of duty.

Holdings

1. An attorney who has actual knowledge that a question of law bearing upon a client's interests has been certified to a higher court owes a duty to advise the client of that fact and its potential consequences, even though there is no general duty to predict changes in the law.
2. The amended complaint stated a cause of action for legal malpractice because the facts alleged, taken as true, show the attorney had a duty to advise his clients of the pending certified question and its implications, and his failure to do so caused loss.

Questions Presented

1. Whether an attorney has a duty to inform clients of a possible change in the law of which the attorney has actual knowledge.
2. Whether the amended complaint stated a cause of action for legal malpractice.

Disposition

reversed_and_remanded