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District Court Rejects Legal Malpractice Claim Based Upon a Letter of Credit

RAFOOL v. Evans, Dist. Court, CD Illinois 2013 – Google Scholar.

This is a legal malpractice case where the plaintiff claimed that the defendant lawyers were negligent in failing to instruct the plaintiff to draw on a letter of credit prior to filing bankruptcy. The court held that there was no legal malpractice because the letters of credit were the property of the bankruptcy estate.  The letters of credit could have been assumed by the bankruptcy trustee.   The opinion also provides a thorough discussion of the law relating to letters of credit.

Thus, this is a case where the lawyers did not cause any damage to the plaintiff because the letters of credit were the property of the bankruptcy estate.