Estate of Edward C Benevente v Maquera [2000] GUSC 9; 2000 Guam 09 (7 February 2000)

IN THE SUPREME COURT OF GUAM

ESTATE OF EDWARD C. BENAVENTE,
ESTATE OF PEDRO S.N. CASTRO
Plaintiff-Appellant

vs.

LEON G. MAQUERA
Defendant-Appellee

OPINION

Filed: February 7, 2000

Cite as: 2000 Guam 9

Supreme Court Case No. CVA98-011
Superior Court Case No. CV0024-90

Appeal from the Superior Court of Guam
Argued and Submitted on August 16, 1999
Hagåtña, Guam

Appearing for Plaintiff-Appellant: Mark S. Smith, Esq. Brief prepared by: Bill R. Mann, Esq. Berman O'Connor & Mann Suite 503, Bank of Guam Building 111 Chalan Santo Papa Hagåtña, Guam 96910

Appearing for Defendant-Appellee: Leon G. Maquera, Esq. Maquera Law Offices P.O. Box 11976 Yigo, Guam 96929

BEFORE: RICHARD H. BENSON, Acting Chief Justice[1], JOHN A. MANGLONA, Designated Justice, and JOHN C. DIERKING, Justice Pro Tempore.

BENSON, J.:

[1] This case raises issues of Guam law concerning the fiduciary duty attorneys owe clients in transactions with their clients. Appellee, Leon G. Maquera (AMaquera@), an attorney, provided legal services to Appellant, Pedro S.N. Castro (ACastro@).[2] In exchange for services rendered, Castro conveyed a piece of property to Maquera. Castro then sought to set aside the conveyance, alleging that Maquera, as a practicing attorney, had a fiduciary duty toward Castro, his client, which Maquera had breached. The trial court found that because Castro had not proven the existence of a trustee relationship, Maquera had not breached a fiduciary duty. Thus, the trial court denied Castro the relief sought. Upon review of the matter, we find that the lower court erred in failing to apply the law of fiduciaries to this case. Accordingly, the decision of the lower court is reversed and the matter is remanded to the trial court.

FACTUAL AND PROCEDURAL BACKGROUND

[2] The Appellant, Castro, was a man of limited education, finishing only the sixth grade. The Appellee, Maquera, is an attorney of approximately 42 years experience. Sometime in 1982, Maquera met Castro. Thereafter, Maquera began to provide legal services to Castro. The parties did not execute a written fee agreement regarding the legal services rendered nor did Maquera keep records documenting time spent for work performed. Over the years, Maquera handled a number of legal matters for Castro, most of which dealt with land transactions. Although the two men did not socialize together, a casual friendship developed.

[3] On or about December 17, 1987, after completing some legal work for Castro, the parties discussed the matter of outstanding legal fees owed Maquera. At the time, Maquera estimated that the amount owed was somewhere between $12,000.00 and $45,000.00.[3] For remuneration of services, Maquera suggested that Castro give him a particular piece of property that Castro owned.[4] Therefore, on or about January 4, 1988, Castro gave Maquera a Quitclaim Deed to the subject property. The property is located in Harmon, zoned R-2 and is approximately 5,000 square meters in size.

[4]