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Lawyer's Widow Says Associate Took Funds, Clients
By Jessica M.
Walker
New York Lawyer
Miami Daily Business Review
February 15, 2005
As prominent Miami lawyer
William Huggett lay dying in the hospital last August, his associate
and friend Jay Wingate approached Huggett’s wife, Jacqueline, and
asked her to appoint him as the Huggett Law Firm’s inventory
attorney.
Wingate said "she needed to
consent to him as inventory attorney in order to protect her
interest in the firm or otherwise the court would appoint a stranger
and give the cases to another firm," Mrs. Huggett says in court
papers.
Shortly after that, Huggett
died of a stroke, at age 65. His widow promptly signed documents
making Wingate, 60, the inventory attorney for the thriving maritime
firm, which had scores of complex, possibly lucrative cases. Wingate
was the firm’s only associate at the time of Huggett’s death.
Mrs. Huggett, who has twin
10-year-old sons by Huggett and is serving as the personal
representative of her late husband’s estate, is accusing Wingate of
manipulating her in her time of grief to get the appointment, then
using his dual position as inventory attorney and associate to loot
the firm of money and about 100 of the firm’s clients. Mrs. Huggett
is now fighting in court to rebuild her husband’s practice, in both
the litigation surrounding the inventory attorney appointment and in
a lawsuit filed this month.
At the center of the fight
is the question of where an inventory attorney’s loyalty lies if he
or she is also an employee of the firm. The Huggett estate asserts
that Wingate had a fiduciary duty to the firm, as its sole
associate.
Wingate counters that once
he was appointed inventory attorney, his duty to the clients
superseded any obligation to the firm, allowing him to solicit the
Huggett firm’s clients while still employed by the Huggett Firm.
Inventory attorneys are appointed by the court when an attorney dies
or abandons his clients, leaving no one behind to sort through the
cases.
Inventory attorneys are
responsible for making sure the cases do not fall through the
cracks. The law allows them to take on the cases themselves or dole
them out to other attorneys.
Mrs. Huggett filed an
unjust enrichment and breach of duty suit against Wingate in
Miami-Dade Circuit Court on Feb. 3. David H. Pollack is representing
Mrs. Huggett, who argued in court documents that Wingate’s efforts
to snatch clients happened only after his failed negotiations to buy
the firm from her.
Mrs. Huggett had hoped to
maintain the cases at the firm until she found a suitable buyer.
But last week, Chief
Miami-Dade Circuit Judge Joseph P. Farina Jr. ruled in favor of
Wingate in the inventory attorney litigation, denying Mrs. Huggett’s
motion to force Wingate to return any clients he solicited from the
firm.
He found that Wingate’s
duties as an associate were superseded by his duties as inventory
attorney. As an associate, Wingate would be amiss to solicit away
the Huggett Firm’s clientele while still in its employ under Florida
law, since he would owe a duty to the firm.
However, Farina ruled that
the duty owed to the clients outweighed any duty to the firm, and
that Wingate had the right to keep Huggett’s cases.
In his order, Farina wrote
that The Florida Bar has not adequately addressed what constitutes a
proper contact letter from an inventory attorney to clients. Farina
asked the Bar to address the issue.
Mrs. Huggett’s attorney
plans to appeal Farina’s decision.
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