New Jersey | Legal Malpractice
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?
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