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Legal Updates for Lawyers' Professional Liability

New Jersey Defines When Attorneys Owe Duties to Non-Client

Legal Updates for Lawyers’ Professional Liability March 2026 - CASE LAW UPDATE

Christakos v. Boyadjis, 262 N.J. 447 (2026)

When does an attorney owe a non-client a duty of care? And when can that non-client bring forth an action for legal malpractice? Christakos v. Boyadjis, 262 N.J. 447 (2026), undertakes these questions and considers the appropriate standard.

In the present matter, the plaintiffs brought suit against the attorney that prepared the wills of their two family members, alleging legal malpractice. The two plaintiffs were the sister-in-law and niece to the decedents. The decedents were brothers and, in 2003, they executed mirror image wills, along with completing powers of attorney (POA) documents in 2001. As a result of these documents, the plaintiffs stood to inherit part of the estate, and one plaintiff was attorney-in-fact under the POA. However, the plaintiffs had no knowledge of this or the testamentary documents.

In 2017, the brothers sought to make changes to their wills, expressing a strong desire to disinherit their nephew and nieces, wanting to leave their estate to their church and local community members that were supporting them in their advanced age. In 2018, their health began to decline, and the attorney made the final changes to their wills. The will for the first brother was completed in January 2018, leaving everything to the surviving brother, and the alternative residuary was to be split equally between two neighbors, their church, and then their sister-in-law, which is one of the plaintiffs. The other brother was not competent to execute the will and continued to have cognitive decline. This brother executed his will on April 7, 2018, after a home health aide determined that he was in a lucid state and had testamentary capacity. A few days letter, that brother was confirmed to be incompetent and needed a legal guardian appointed. Both brothers died in 2018, and the niece filed two caveats, challenging both wills among other probate actions.

In 2020, the plaintiffs sued the attorney for legal malpractice, breach of fiduciary duty, and other claims, arguing that the attorney owed them a duty of care because they were beneficiaries to the brothers' estate.

After years of motion practice and appeals, the Supreme Court of New Jersey expressly adopted the provisions of Section 51 of the Restatement (Third) of the Law Governing Lawyers to determine when a lawyer owes a duty of care to a non-client. In doing so, the court determined that the standard hinges upon reliance and clear, convincing evidence of intention.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.