Overview:

• Daniel Hamilton sold his moving business to Jesse Standing for $650,000, with a $5,000 deposit and vendor financing of $220,000 over ten years at 4% interest.
• Todd Herter, Hamilton's lawyer, drafted a new asset sale agreement including a personal guarantee from Standing.
• Standing defaulted on the loan and declared bankruptcy, leading Hamilton to sue Herter for professional negligence and breach of contract.

Issues:

1. Scope of retainer between Hamilton and Herter.
2. Whether the standard of care required Herter to secure the purchaser’s personal guarantee.
3. Whether Herter breached the standard of care.

Key Findings:

• Scope of Retainer: The retainer was verbal and unwritten, focusing on closing the asset sale. Herter's version of the retainer was preferred, considering Hamilton's long-standing client relationship and instructions.
• Standard of Care: Herter acted with reasonable care, skill, and knowledge. The standard of care did not require obtaining security on the personal guarantee, given Hamilton's experience and instructions.
• Credibility: Herter’s evidence was found more credible than Hamilton’s. Hamilton’s understanding and involvement in business dealings, including previous experiences with personal guarantees, supported Herter’s actions.

Conclusion:

• The court found that Herter did not breach his professional duty or the contractual agreement.
• Hamilton's claim was dismissed, and parties were encouraged to negotiate costs within 30 days.
• No monetary award was specified.