Peeler v. Hughes & Luce

909 S.W.2d 494 (1995)

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Nature of the Case

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Facts

P was an officer at a corporation trading in government securities. P and other individuals came under federal criminal investigation by the IRS because they were suspected of engineering illegal tax write-offs for wealthy investors. Peeler hired Jordan, a partner with D to represent her. She paid D a $250,000 non-refundable retainer fee and further agreed to pay any hourly fees exceeding that amount. A federal grand jury indicted P on twenty-one counts. That grand jury also indicted her husband, and the other Hillcrest principals on various charges. P signed a plea agreement, and the United States dropped the balance of the charges against her, dismissed all charges against her husband, and recommended a relatively short prison sentence. She was sentenced to a $100,000 fine, $150,000 in restitution, and five years of probation in lieu of incarceration. P sued D for malpractice. Prior to the time she pled guilty, D failed to tell her that the United States Attorney had offered her absolute transactional immunity if she would become a witness and testify against her colleagues. D learned about this offer from a journalist three days after pleading guilty. P sued for legal malpractice, breach of contract, and breach of warranty. D moved for summary judgment because P's own conduct was the sole proximate or producing cause of her damages, and she did not seek to withdraw her plea or set aside her conviction. The trial court rendered summary judgment and P appealed.