David S. Kaufman, P.A. v. Moskowitz
David S. Kaufman, P.A. v. Moskowitz
Opinion of the Court
By these consolidated appeals, the appellant, Kaufman, seeks review of a final judgment for the appellee, Moskowitz, entered by the trial court, pursuant to a jury verdict in an action for legal malpractice, and trustee’s negligence. Kaufman also seeks review of a judgment awarding him only $1,300.00 attorney’s fees on his counterclaim.
Moskowitz hired Kaufman as an attorney to handle the closing on a parcel of real property that Moskowitz wanted to sell. The property sold in 1987. At time of the sale, Moskowitz wanted to effect a “Starker exchange” for tax purposes.
To receive the benefit of a “Starker” transaction, the grantor of a sale of real property can have no control over the funds received, which are to be held by a third party for a reinvestment in “like” property within a certain time limit. Mos-kowitz’ only viable cause of action against Kaufman, as the holder of the “Starker” funds, would have been for Kaufman acting as an imprudent person in the protection of the funds. See and compare Dodson v. National Title Ins. Co., 159 Fla. 371, 31 So.2d 402 (1947); SMP, Ltd. v. Syprett, Meshad, Resnick & Lieb, P.A., 584 So.2d 1051 (Fla. 2d. DCA 1991); Biadi v. Lawyers Title Ins. Corp., 374 So.2d 30 (Fla. 3d DCA 1979); Silverman v. Turner, 188 So.2d 354 (Fla. 3d DCA 1966). No evidence as to how a prudent person would have handled these funds was before the court at the conclusion of the plaintiff’s case, and consequently the directed verdict should have been granted. Therefore, we reverse the final judgment under review and find no merit in the cross appeal as to the jury award on attorney’s fees. Graham v. Knap, 209 So.2d 708 (Fla. 3d DCA), cert. denied 214 So.2d 621 (Fla. 1968); Carr Quality Jewelers, Inc. v. Coker, 201 So.2d 798 (Fla. 4th DCA1967).
The final judgment under review is reversed with directions to the trial court to enter judgment for Kaufman on the plaintiff’s claim and to enter judgment of $1,300 for Kaufman on his counterclaim.
Reversed and remanded with directions.
. A Starker exchange is an action taken by the seller of property to take advantage of the tax benefits afforded a like-kind exchange of property. See § 1031 Internal Revenue Code. This is accomplished by taking the proceeds of a cash sale and removing it from control of the seller for a limited time until these proceeds are invested in a like-kind property. See Starker v. United States, 602 F.2d 1341 (9th Cir. 1979).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.