The United States Court of Appeals for the Third Circuit has ruled that a New Jersey attorney is liable for damages for using undue influence to take $391,000 from an elderly relative.

Jane Adkins sued her brother, New Jersey attorney John Sogliuzzo, in federal court, claiming that her brother misappropriated assets belonging to Mary Grimley, their mother’s elderly cousin. Sogliuzzo acted as Grimley’s power of attorney during her later years.

In her lawsuit, Adkins alleged, among other things, that Sogliuzzo was liable for undue influence, breach of fiduciary duty, negligence, fraud, and misrepresentation under New Jersey law when he misappropriated $70,000 in cash that was found in Grimley’s apartment and that he redeemed $321,000 in savings bonds belonging to Grimley between 2004 to 2006 and kept the proceeds.

After a five-day bench trial, the district court held that Sogliuzzo was liable for undue influence, breach of fiduciary duty, negligence, fraud, and misrepresentation for his mismanagement of Grimley’s estate. However, the court declined to award damages, ruling that Adkins failed to offer sufficient evidence that a gift was made during Grimley’s lifetime. Adkins appealed.

The Third Circuit Court of Appeals reversed. The appeals court ruled that the district court’s denial of damages, resting on the conclusion that the plaintiff failed to sufficiently prove that an inter vivos gift or transfer occurred, contradicted the district court’s earlier finding of undue influence based on transfers made during the donor’s lifetime, which assumed that an inter vivos gift was made.

As a result, the Third Circuit vacated the district court’s order and remanded the case to the lower court for a determination of damages.

The Third Circuit opinion is attached here – Adkins v. Sogliuzzo

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