Likover v. Sunflower Terrace II, Ltd

In Likover v. Sunflower Terrace II, Ltd., 696 S.W.2d 468 (Tex. App.--Houston 1st Dist. 1985, no writ), an attorney and his clients joined together in a scheme to exact money, to which they were not legally entitled, from the plaintiffs. There, the plaintiffs purchased an apartment complex from the defendants and paid them for architectural services and rehabilitation of the property. Id. at 469-70. However, the parties did not execute a contract for rehabilitation, and the defendants, who were not licensed architects, did not prepare plans or blueprints. Id. at 470. On the advice of the attorney, the defendants then refused to sign the deed to the apartment complex as promised, unless the plaintiffs paid them an additional $400,000. Id. at 471. On appeal, the attorney asserted that he "merely gave legal advice to a client." Id. at 474. The Court held, however, that "an attorney is liable if he knowingly commits a fraudulent act that injures a third person, or if he knowingly enters into a conspiracy to defraud a third person." Id. at 472.