Tuesday, May 17, 2005

Supreme Court reverses bankruptcy malpractice verdict

The Nebraska supreme Court about 2 weeks ago in an unpublished opinion reversed a $640,000 malpractice verdict against Lincoln attorney Bill Chapin, which was related to his handling a Hall County farm's bankruptcy. The Court did not explain why it did not publish the decision but the Court ordered the case on remand to Lancaster County District Court Judge Jeffre Cheuvront to be completely dismissed. Also if the case did not merit a published opinion, why did the Supremes take the case in the first place? Through much of the case in District Court the Plaintiff, an elderly woman, represented herself and handwrote her pleadings. Suing your bankruptcy lawyer is hard to do, as in PATTERSON v.SWARR, MAY, SMITH & ANDERSON, 473 N.W.2d 94, 238 Neb. 911 (1991). (http://versuslaw.com/ registration required). The Supreme Court reversed over a $1million verdict against attorneys who improperly advised debtor clients to spend cash collateral on operating expenses, which lead to bank repossession of ther livestock and quick liquidation of their bankruptcy. The debtors experts could not prove that the debtors would have completed the more orderly liquidation plan. The Supreme Court ordered the $1million case dismissed on remand.

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