Petersen v. Wallach

764 N.E.2d 19, 198 Ill. 2d 439, 261 Ill. Dec. 728 (Ill. 2002) (Ill. 2002) · Supreme Court of Illinois · January 25, 2002 · No. 89947

Summary

The Supreme Court of Illinois held that the exception to the six-year statute of repose for attorney malpractice actions under 735 ILCS 5/13-214.3(d) applies whenever the injury occurs upon the death of the person for whom professional services were rendered. The exception applies regardless of whether the decedent's assets are distributed through probate, an inter vivos trust, or another mechanism.

Court
Supreme Court of Illinois
Writing for the Court
Kilbride
Jurisdiction
Illinois
Decision date
January 25, 2002
Docket number
89947
Procedural posture
Appeal from the Appellate Court, First District, which reversed the circuit court's dismissal of the complaint as time-barred.
Standard of review
de novo
Precedential value
published
Parties
Stanley J. Wallach v. Leslee C. Petersen
Disposition
affirmed

Topics

plain meaning rulestatutory interpretationcanons of constructionprofessional negligenceestate planning

Practice areas

attorney malpracticestatutory interpretationestate planningprobate

Questions Presented

  1. Whether the exception to the six-year statute of repose for attorney malpractice actions under section 13-214.3(d) of the Code of Civil Procedure applies only when assets pass by way of the Probate Act of 1975, or applies more broadly to all attorney malpractice cases where the injury occurs upon the death of the client.

Holdings

  1. Section 13-214.3(d) applies in all attorney malpractice cases when the injury occurs upon the death of the person for whom services were rendered, regardless of the manner used to distribute the decedent's assets.

Key quotations

The lone inquiry made by a court when determining whether section 13-214.3(d) is applicable is simply whether the injury caused by the malpractice occurred upon the death of the client. The manner of distributing the decedent's assets is of no consequence. (at 22)
Section 13-214.3(d) unambiguously applies in all cases when the alleged injury caused by the malpractice does not occur until the death of the client, regardless of whether the deceased client's assets are distributed by probate, inter vivos trust, or some other mechanism. (at 24)

Factual background

Plaintiff's mother engaged defendant for estate planning advice. Defendant recommended making substantial taxable inter vivos gifts to plaintiff. The gifts were made, but upon the mother's death, they were added back into her estate for tax purposes, increasing tax liability by $238,000. Plaintiff sued for malpractice, but defendant argued the claim was barred by the six-year statute of repose.

Procedural history

The circuit court of Cook County dismissed plaintiff's complaint as time-barred. The appellate court reversed. The Illinois Supreme Court affirmed the appellate court.

Court Document

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