McFail v. Braden

59 Citing cases

  1. Klaskin v. Klepak

    126 Ill. 2d 376 (Ill. 1989)   Cited 38 times
    Explaining that the McFail factors are “[s]ome of the factors which this court deems persuasive ”

    When an attorney engages in a transaction with a client and is benefited thereby, a presumption arises that the transaction proceeded from undue influence. ( McFail v. Braden (1960), 19 Ill.2d 108.) Once a presumption is raised, the burden shifts to the attorney to come forward with evidence that the transaction was fair, equitable and just and that the benefit did not proceed from undue influence. ( Franciscan Sisters Health Care Corp. v. Dean (1983), 95 Ill.2d 452.) Because a strong presumption of undue influence arises when an attorney engages in a transaction with a client and is benefited thereby ( McFail v. Braden (1960), 19 Ill.2d 108), courts require clear and convincing evidence to rebut this presumption ( Franciscan Sisters Health Care Corp. v. Dean (1983), 95 Ill.2d 452). Some of the factors which this court deems persuasive in determining whether the presumption of undue influence has been overcome include a showing by the attorney (1) that he or she made a full and frank disclosure of all relevant information; (2) that adequate consideration was given; and (3) that the client had independent advice before completing the transaction.

  2. In re Schuyler

    434 N.E.2d 1137 (Ill. 1982)   Cited 16 times

    Moreover, the existence of the attorney-client relationship results in a fiduciary relationship as a matter of law. In re Czachorski (1969), 41 Ill.2d 459; In re Broverman (1968), 40 Ill.2d 302, 307; McFail v. Braden (1960), 19 Ill.2d 108; Gaffney v. Harmon (1950), 405 Ill. 273, 277. It is a time-honored principle that all transactions occurring between attorney and client, while the relationship continues, must be subject to the closest scrutiny.

  3. Niccum v. Meyer

    171 B.R. 828 (N.D. Ill. 1994)   Cited 1 times

    When an attorney engages in a transaction with a client and is benefited thereby, a presumption arises that the transaction proceeded from undue influence. ( McFail v. Braden (1960), 19 Ill.2d 108, 166 N.E.2d 46) Once a presumption is raised, the burden shifts to the attorney to come forward with evidence that the transaction was fair, equitable and just and that the benefit did not proceed from undue influence. ( Franciscan Sisters Health Care Corp. v. Dean, (1983), 95 Ill.2d 452, 69 Ill.Dec. 960, 448 N.E.2d 872) Because a strong presumption of undue influence arises when an attorney engages in a transaction with a client and is benefited thereby ( McFail v. Braden (1960), 19 Ill.2d 108, 166 N.E.2d 46), courts require clear and convincing evidence to rebut this presumption ( Franciscan Sisters Health Care Corp. v. Dean (1983), 95 Ill.2d 452, 69 Ill.Dec. 960, 448 N.E.2d 872). Some of the factors which this court deems persuasive in determining whether the presumption of undue influence has been overcome include a showing by the attorney (1) that he or she made a full and frank disclosure of all relevant information; (2) that adequate consideration was given; and (3) that the client had inde

  4. In re Berg

    387 B.R. 524 (Bankr. N.D. Ill. 2008)   Cited 29 times
    Recording of the eHome Mortgage against the property after the bankruptcy petition filing date was an act to perfect a lien against property which included property of the Estate in violation of the automatic stay

    As an attorney, Tucker owed his client, the Debtor, a fiduciary duty as a matter of law. See McFail v. Braden, 19 Ill.2d 108, 166 N.E.2d 46, 51 (1960). Tucker responds that he did not owe Debtor a fiduciary duty, because he did not represent Debtor at the time of the foreclosure sale in July 2000, or when the Quitclaim Deed was executed on April 3, 2005.

  5. In re Imming

    131 Ill. 2d 239 (Ill. 1989)   Cited 28 times
    Applying predecessor to Rule 1.8, Rule 5-104 of Illinois Code of Professional Responsibility

    This court has also held that where an attorney engages in transactions with a client and is benefited thereby, the burden rests on the attorney to show that it is fair, equitable and just, and that it did not proceed from undue influence. ( Schuyler, 91 Ill.2d at 11; Turner v. Black (1960), 19 Ill.2d 296, 305; McFail v. Braden (1960), 19 Ill.2d 108, 117.) In order to prove that the benefit received did not proceed from undue influence, the attorney must prove (1) that he made a full and frank disclosure of all the relevant information that he had, (2) that the consideration was adequate, and (3) that the client had independent advice before completing the transaction.

  6. Zachary v. Mills

    277 Ill. App. 3d 601 (Ill. App. Ct. 1996)   Cited 8 times

    Stuhlfauth, 88 Ill. App.3d at 981, 410 N.E.2d at 1068. In McFail v. Braden (1960), 19 Ill.2d 108, 166 N.E.2d 46, an attorney was hired to give advice to decedent on her real estate. On the attorney's advice, decedent conveyed the tract of real estate to the attorney's secretary and she in turn conveyed it to decedent and the attorney's son as joint tenants.

  7. In re Estate of Woodruff

    164 Ill. App. 3d 791 (Ill. App. Ct. 1987)   Cited 1 times

    Although the courts closely scrutinize dealings between an attorney and his clients, an attorney is not prohibited from contracting or getting benefits from a client, where the transaction is open, fair and honest, when deliberately made and not tainted with fraud, undue influence or corruption. Saladino, 71 Ill.2d at 270, 375 N.E.2d at 104; McFail v. Braden (1960), 19 Ill.2d 108, 117, 166 N.E.2d 46, 52. • 3 The supreme court clarified the rules regarding presumptions and burdens of proof in cases involving transactions between fiduciaries in Franciscan Sisters Health Care Corp. v. Dean (1983), 95 Ill.2d 452, 448 N.E.2d 872. There, the court determined that when an attorney presents sufficient evidence to rebut the presumption, the presumption vanishes.

  8. Ball v. Kotter

    723 F.3d 813 (7th Cir. 2013)   Cited 161 times
    Affirming grant of summary judgment in favor of attorney because plaintiff did not provide expert testimony regarding an attorney's standard of care related to conflicts of interest and also stressing that a violation of the Rules of Professional Conduct does not alone establish liability for legal malpractice.

    And in making this determination, Illinois courts consider three “significant” factors, also known as the McFail factors: whether (1) the fiduciary made a full and frank disclosure of all relevant information that he had; (2) the fiduciary paid adequate consideration; and (3) the principal had competent and independent advice. E.g., McFail v. Braden, 19 Ill.2d 108, 166 N.E.2d 46, 52 (1960); Miller, 268 Ill.Dec. 276, 778 N.E.2d at 267. Kotter argued in the district court that the presumption of donative intent, which arises with the creation of a joint tenancy, cancelled out the presumption of fraud as to Unit 4705.

  9. Garris v. Schwartz

    551 F.2d 156 (7th Cir. 1977)   Cited 16 times
    In Garris v. Schwartz- 551 F.2d 156 (7th Cir. 1977), our court of appeals predicted that the Illinois courts would also apply this principle to bar plaintiffs from recovering as damages the fees and expenses they incurred in litigation with a third party that was caused by the defendant.

    First, an attorney-client relationship between plaintiff and defendants would surely establish a duty of reasonable care, and I believe the complaint adequately alleges such a relationship. In McFail v. Braden, 19 Ill.2d 108, 116, 166 N.E.2d 46 (1960), the Illinois Supreme Court found "ample" evidence of an attorney-client relationship upon the "sole proof . . . that [the grantor of some deeds] sought [an attorney's] legal advice for a solution of her problems, and that it was he who recommended the execution of the deeds in question." Such proof is, of course, closely analogous to what is alleged in the instant complaint.

  10. Fielding v. Brebbia

    399 F.2d 1003 (D.C. Cir. 1968)   Cited 15 times
    In Fielding v. Brebbia, 399 F.2d 1003 (D.C. Cir. 1968), the plaintiff sued his attorney for breach of the fiduciary relationship, alleging that the attorney had counseled him to resign his position as president of a corporation, in order to help another client replace him and take over the business.

    As to the first count, we have no difficulty in deciding that there was error in the order of dismissal. See, e.g., McFail v. Braden, 19 Ill.2d 108, 166 N.E.2d 46, 51, 52 (1960); Kukla v. Perry, 361 Mich. 311, 105 N.W.2d 176, 178(1960); Smyrna Developers, Inc. v. Bornstein, 177 So.2d 16, 18 (Fla.App. 1965); Gerlach v. Donnelly, 98 So.2d 493, 498 (Fla. 1957); American-Canadian Oil Drilling Corp. v. Aldridge Stroud, Inc., 237 Ark. 407, 373 S.W.2d 148, 150, 151 (1963); Simler v. Conner, 282 F.2d 382, 385 (10 Cir. 1960). We assert no such assurance respecting the second count entitled "Intentional Falsehood" as to which the District Judge in colloquy with counsel prior to his ruling made no reference.