The plaintiff, a CPA, sued his former lawyer for breach of contract and solicitor negligence, alleging improper advice regarding tax liability on a forgiven employment loan.
The plaintiff claimed the lawyer failed to advise him that he would be responsible for taxes on a $125,000 loan forgiveness from his former employer, Gemstar, and that Gemstar had agreed to pay these taxes.
The defendant lawyer asserted he advised the plaintiff that the documents did not obligate Gemstar to pay taxes and that the plaintiff, as a CPA, was aware of the tax implications of loan forgiveness.
The court found the plaintiff's evidence unreliable and preferred the defendant's, concluding that Gemstar never agreed to pay the taxes and that the lawyer provided correct advice regarding the loan forgiveness extinguishing the debt.
The court dismissed the action, finding no breach of the standard of care or compensable damages, and no loss of a real chance to sue Gemstar or negotiate a better deal.