WOOD V. MCGRATH, NORTH, MULLIN & KRATZ, P.C.
589 N.W.2d 103 (1999)

PROCEDURAL POSTURE: Plaintiff client's petition for further review of a decision of Nebraska Court of Appeals was granted. The court of appeals had concluded that, as a matter of law, defendant attorney did not breach the standard of care or commit legal malpractice by failing to inform plaintiff that the law relating to two issues relevant to a divorce settlement was unsettled and that the settlement resolved those issues against her.

ISSUE: "When an attorney presents a client with a settlement is mere a duty to inform the client of possible options when the law relating to a relevant issue is unsettled?

RULE OF LAW: "When an attorney presents a client with a settlement mere is a duty to inform the client of possible options when the law relating to a relevant issue is unsettled.

Holding: Client brought legal malpractice action against attorney who had represented her in dissolution proceeding which was concluded by settlement and decree. At the close of the evidence, the District Court, Douglas County, Joseph S. Troia, J., directed verdict in favor of attorney, and client appealed. The Court of Appeals, 7 Neb.App. 262, 581 N.W.2d 107, affirmed, and client petitioned for further review. The Supreme Court, Connolly, J., held that doctrine of judgmental immunity did not apply to attorney who failed to advise client of unsettled nature of law regarding whether unvested stock options were part of marital estate and whether marital estate's unvested stock options should have been valued without deducting potential capital gains tax. Reversed and remanded.

AnalysisThe court reversed a decision finding defendant attorney was not negligent as a matter of law in failing to inform plaintiff of the unsettled nature of the law regarding two issues and remanded the cause to a district court for a new trial because the doctrine of judgmental immunity did not apply to an attorney's failure to inform a client of unsettled legal issues relevant to a settlement agreement.