Where a plaintiff could not show that she justifiably relied on alleged negligent misrepresentations from a financial advisor, the trial court’s award of damages to the plaintiff was reversed.
In Bartholomew v. Southard, No. W2024-01494-COA-R3-CV (Tenn. Ct. App. May 29, 2026) (memorandum opinion), the plaintiff represented a client in a wrongful death action, helping to obtain a large settlement for the client with a present value of $2,250,000. The plaintiff’s attorney’s fees totaled $750,000, but rather than paying the full fee immediately, the client asked to pay the fee over time as the settlement was paid. The plaintiff attorney and the client entered into an assignment agreement, whereby the plaintiff was to receive over $2.1 million over a 30-year period. The plaintiff asked the defendant, a financial advisor, to calculate the annual amounts to be paid by the client, and the plaintiff paid the defendant $250 for this work.
In 2011, the client stopped making annual payments under the assignment agreement. By this time, the client had paid $600,752.72 to the plaintiff attorney. The plaintiff attorney filed a complaint against the client, and shortly thereafter the client filed an ethics complaint against the attorney. The client alleged that the plaintiff did not counsel him to seek independent legal advice before agreeing to the assignment agreement, and that the assignment agreement was not in his best interest. Before the plaintiff and client mediated their fee dispute, the plaintiff’s counsel realized that some of the calculations suggested by the defendant had not been reduced to their present value, which would have resulted in an overpayment to the plaintiff. The plaintiff ultimately settled with the former client for an additional payment of $100,000.


