April Madding v. Keech Law Firm, P.A. And Ppgmr Law, P.L.L.C.

2023 Ark. App. 377
Court of Appeals of Arkansas·Decided September 13, 2023·Published

Opinion

Cite as 2023 Ark. App. 377 ARKANSAS COURT OF APPEALS DIVISION IV

No. CV-21-236

APRIL MADDING Opinion Delivered September 13, 2023 APPELLANT

APPEAL FROM THE UNION

COUNTY CIRCUIT COURT

V. [NO. 70CV-20-29]

KEECH LAW FIRM, P.A.; AND PPGMR HONORABLE ROBIN CARROLL, LAW, P.L.L.C. JUDGE APPELLEES

AFFIRMED

RAYMOND R. ABRAMSON, Judge This is an appeal of a legal-malpractice lawsuit that the Union County Circuit Court dismissed. On appeal, appellant April Madding argues four points: (1) the circuit court erred in granting separate appellee Keech Law Firm’s (Keech’s) motion to dismiss for failure to state a cause of action; (2) the circuit court erred in granting appellee PPGMR Law, P.L.L.C.’s (PPGMR’s) discovery motion; (3) the circuit court abused its discretion in denying April’s motion to recuse and awarding attorney’s fees; and (4) the circuit court erred in granting PPGMR’s motion for summary judgment. We affirm.

April and Darrell Madding were married. Darrell owned interests in All-Star Recycling, LLC; All-Star Transportation, LLC; and GML Energy, Inc., f/k/a Darrell Madding, Inc. To assist with some company financing in August 2011, April signed a

“Mortgage, Fixture Filing, and Security Agreement” and a “Continuing Payment and Performance Guaranty.” At her husband’s request, she also signed a “Master Credit Agreement” with Metal Recycling Corporation and personally guaranteed the $375,000 loan.

In October 2015, Metal Recycling Corporation filed a complaint in Union County against April, Darrell, his companies, and others for breach of contract, fraud, conversion, and theft. In part, that complaint alleged that April guaranteed a $375,000 loan agreement. The court issued a summons for April.

In spring 2016, Kevin Keech (the principal of Keech) and Darrell called April at work.

The three of them discussed the possibility that she and Darrell file bankruptcy, but April stated that she was not interested in doing so.

On June 15, 2016, Keech filed an answer on behalf of April, Darrell, and the other defendants. Less than three weeks later, on July 5, Keech requested to withdraw as counsel for all defendants. On July 26, the circuit court approved Keech’s withdrawal. April claims that she was unaware that Keech represented her, filed an answer on her behalf, or withdrew from representing her. Later, PPGMR entered an appearance on her behalf, and filed an answer to Metal Recycling Corporation’s amended complaint. Although PPGMR was served with a motion to strike and a motion for partial summary judgment, it withdrew from representing April without responding to those motions.

On February 22, 2017, Metal Recycling Corporation was awarded a default judgment against April and other defendants in the amount of $1,257,246.83. April contends that she

did not become aware of the judgment until she was deposed on September 15, 2017. At the time, she was represented by Brian Ratcliff, a lawyer with PPGMR. During the course of the Metal Recycling Corporation litigation, April and Darrell were married and lived together. He was the one who retrieved the mail from their mailbox. April did not know whether any mail or litigation documents were delivered to her home or if they were possibly intercepted by Darrell and then withheld from her. In May 2018, April divorced Darrell “for not telling her about the lawsuit.”

On January 21, 2020, April filed a legal-malpractice complaint against Keech and PPGMR. April subsequently filed a first amended complaint against Keech and PPGMR. PPGMR answered, and Keech moved to dismiss, arguing that the three-year statute of limitations had run. April alleged that Keech was negligent; she did not allege any fraud or intentional concealment by Keech. Among other allegations, she contended that Keech answered the lawsuit without her permission, failed to assert certain defenses, and failed to notify her of his withdrawal. In Keech’s motion to dismiss, it argued that the statute of limitations begins to run when the alleged negligent act occurs, not when the client discovers it. Keech explained that its representation of April concluded on July 26, 2016, and that April failed to file suit until January 27, 2020. April responded and admitted that the court granted Keech’s withdrawal on July 26, 2016, but argued that her claim was not barred. The circuit court held a hearing on Keech’s motion to dismiss.

April conceded that given that the “lawsuit wasn’t filed until January of 2020,” “the statute of limitations rules.” But she then claimed that the wrongdoing was concealed, that

an “attorney has a duty to tell the client of the wrongdoing,” and that Keech’s failure to tell her of its withdrawal was “negligence.” At no point did she argue that Keech’s negligence was fraudulently concealed or that Keech took affirmative action to conceal April’s claim. Keech explained that the complaint does not state what Keech did wrong, what was concealed, or what Keech affirmatively did to conceal it. At the conclusion of the hearing, the court granted Keech’s motion to dismiss. On October 12, 2020, the circuit court entered its order dismissing April’s claims against Keech, finding that the three-year statute of limitations had expired and that there were insufficient concealment allegations in the complaint. The court dismissed April’s claims against Keech with prejudice.

April later filed a second amended complaint against PPGMR. On December 22, 2020, PPGMR moved for summary judgment based on the statute of limitations. A week later, on December 29, PPGMR filed a second motion for summary judgment with respect to proximate cause, arguing that the judgments about which April complained were entered due to conduct that occurred when she was proceeding pro se and prior to any appearance or representation by PPGMR. On March 12, 2021, the court entered an order granting PPGMR’s statute-of-limitations and proximate-causation summary-judgment motions, ruling all remaining motions were moot, and it dismissed the claims against PPGMR with prejudice. This timely appeal is now properly before our court.

April’s first appellate point is that the circuit court erred in dismissing her claims against Keech. We first note that April contends that our review should be based on a de novo standard. She is mistaken. “This court’s standard of review for the granting of a motion

to dismiss is whether the circuit court abused its discretion.” Richardson v. Madden, 2012 Ark. App. 120, at 3 (citing Dockery v. Morgan, 2011 Ark. 94, 380 S.W.3d 377) (reviewing statute- of-limitations decision in a legal-malpractice case for abuse of discretion) ; see also Smith v. May, 2013 Ark. 248, at 4 (“When reviewing a dismissal for failure to state a claim under Rule 12(b)(6), our standard of review is whether the trial court abused its discretion in dismissing the complaint.”); Worden v. Kirchner, 2013 Ark. 509, at 6, 431 S.W.3d 243, 247.

April’s claims are barred on the face of her complaint because she did not file suit within three years of Keech’s withdrawal from representing her, and the limitations period was not tolled because she failed to allege facts demonstrating fraudulent concealment. She has not shown an abuse of discretion, nor has she preserved the fraudulent-concealment argument that she asserts on appeal.

The statute of limitations for legal-malpractice actions is three years. Delanno, Inc. v.

Peace, 366 Ark. 542, 545, 237 S.W.3d 81, 84 (2006); Ark. Code Ann. § 16-56-105 (Repl. 2005). For well over one hundred years, the Supreme Court of Arkansas has held “that the statute of limitations in an action against an attorney for negligence begins to run, in the absence of concealment of the wrong, when the negligence occurs, not when it is discovered by the client.” Riggs v. Thomas, 283 Ark. 148, 149, 671 S.W.2d 756, 757 (1984) (citing White v. Reagan, 32 Ark. 281 (1877)).

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April Madding v. Keech Law Firm, P.A. And Ppgmr Law, P.L.L.C., 2023 Ark. App. 377 (Ark. Ct. App. 2023).

2023 Ark. App. 377 (April Madding v. Keech Law Firm, P.A. And Ppgmr Law, P.L.L.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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