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Ivancic v. Davies (11th Dist. App. 2011-L-050), 2012 Ohio 3639. Decedent died intestate, leaving two daughters, one born out of wedlock (Ivancic) and raised by another man and one born to decedent and his wife (Enos). For two years prior to decedent's death, decedent retained attorney to perform legal work for him in exchange for a one-third interest in decedent's residence, which Attorney recorded as a mortgage lien two days prior to decedent's death. After decedent's death, attorney was retained by decedent's legitimate daughter to represent her in the administration of her father's estate. Attorney did not notify decedent's daughter that he had a creditor's claim against the estate. Instead, attorney sold the estate's real property and took his one-third interest unbeknownst to the court and/or the beneficiaries of the estate. Attorney also never identified decedent's other daughter and closed the estate, distributing it to the fiduciary of the estate.

Ivancic filed a claim for breach of fiduciary duty and conversion against Enos and attorney for failing to notify her of the estate proceedings and failing to make a distribution to her. Enos eventually joined Ivancic in her claim against the attorney and requested that attorney's fees be disgorged plus damages. The attorney asserted that he did not have a fiduciary duty to either beneficiary and the probate court lacked jurisdiction to hear their claims. At trial, the court found that attorney breached a fiduciary duty owed to Enos and failed to disclose his conflict of interest as an estate creditor. On appeal, the court found that while the attorney client relationship between Enos and attorney created a fiduciary duty that Attorney breached, R.C. 5815.06 shielded Attorney from liability to Ivancic, a third party.

As a result of the attorney's breach, the court's disgorgement of all attorney's fees and estate funds unaccounted for was upheld on appeal because the attorney's representation in the estate administration did not preserve or augment decedent's estate. The court also awarded the beneficiaries with the payment of their attorney's fees by Attorney personally due to attorney's bad faith conduct in breaching his fiduciary duties.