Baker v. Beal

225 N.W.2d 106
CourtSupreme Court of Iowa
DecidedJanuary 22, 1975
Docket56782
StatusPublished
Cited by60 cases

This text of 225 N.W.2d 106 (Baker v. Beal) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Beal, 225 N.W.2d 106 (iowa 1975).

Opinion

REYNOLDSON, Justice.

Plaintiff’s intoxicated husband, transported home by a bartender from the Kickapoo Tavern, Davenport, Iowa, at about 1:30 A.M. on July 2, 1967, apparently stumbled as he entered the house. He sustained severe lacerations when his arm went through a glass in the kitchen door and he died at about 3:00 A.M. the same morning.

Shortly after the funeral, plaintiff employed these defendant-lawyers, as they later admitted, “to represent her interests for the purpose of recovering whatever amount she was entitled to recover from whomever was responsible to her under the statutes of the State of Iowa.”

November 1, 1967, defendant Doyle was present when plaintiff’s statement was taken by attorneys for Northwest Sportsmen’s Club, Inc. For almost two years defendant-lawyers negotiated with the “dram shop insurance lawyers” but received an offer of only $1500 which plaintiff rejected.

Increasingly concerned, plaintiff telephoned a different lawyer who told her the two year statute of limitations was about to expire. She again contacted defendant Doyle’s office. A zero-hour dram shop suit was instituted July 2, 1969 against “Carl Haas d/b/a Kickapoo Tavern.” This action, grounded on the “new” dram shop statute, § 123.95, The Code, 1966, prayed for $35,000 in damages for plaintiff’s loss of means of support.

Haas filed a special appearance. August 8, 1969, these lawyer-defendants amended plaintiff’s petition by adding Kickapoo Tavern and Northwest Sportsmen’s Club, Inc., d/b/a Kickapoo Tavern as party defendants. All those defendants filed motions to dismiss. Haas’ motion was sustained on the ground the petition did not allege Haas was a permittee or licensee as required by § 123.95. The amended petition was dismissed because the cause of action was barred by the limitation statute.

Plaintiff then commenced this legal malpractice action against these lawyer-defendants praying for $250,000 in damages. Following a non-jury trial the court filed extensive findings of fact and conclusions of law and held against plaintiff, who appeals. We reverse and remand for new trial.

Summarized, the following issues are presented for our review: 1) Did trial court err in holding plaintiff failed to prove her original action would have been successful absent defendants’ negligence? 2) Did trial court err in finding there was no evidence *109 of the amount of support plaintiff lost by reason of her husband’s death? 3) Did trial court err in holding defendants not negligent in failing to file suit under the “old” dram shop statute, § 129.2, The Code, 1966? 4) Did trial court err in holding defendants were not negligent in failing to properly assess plaintiff’s damages in the dram shop action?

I. At close of plaintiff’s evidence and at close of all evidence defendants entered motions to dismiss or for a directed verdict. Three months after trial, without reference to these motions, trial court proceeded to file “Findings of Fact, Conclusions of Law and Judgment Entry.” Upon a careful study of this instrument, the motions, and the record, we are persuaded trial court did not rule on a motion for directed verdict, but rather determined the whole controversy on its merits. See Batliner v. Sallee, 254 Iowa 561, 564, 118 N.W.2d 552, 554 (1962). Its findings of fact have the effect of a special verdict and are equivalent to a jury verdict. Frantz v. Knights of Columbus, 205 N.W.2d 705, 708 (Iowa 1973). If supported by substantial evidence and justified as a matter of law, the judgment will not be disturbed on appeal. Rule 344(f)(1), Rules of Civil Procedure.

II. Plaintiff asserts trial court erred in holding she had not sustained her burden of proving her dram shop action would have been successful absent defendants’ alleged negligence.

This plaintiff does not challenge the prevailing case law holding a client who seeks to recover against his or her lawyer in a malpractice action based upon negligent handling of a lawsuit for money damages must not only prove negligence but must also prove that, absent the lawyer’s negligence, the underlying suit would have been successful. 7 Am.Jur.2d, Attorneys at Law § 190, pp. 157-58, and citations; Annot., 45 A.L.R.2d 5, 10, 19, and citations; Coggin, Attorney Negligence * * * A Suit Within a Suit, 60 W.Va.L.Rev. 225 (1958). Although no Iowa decision has directly held that rule to be the law of this jurisdiction, it finds support in Getchell & M. Lumber & M. Co. v. Employers’ L. Assur. Corp., 117 Iowa 180, 90 N.W. 616 (1902).

In holding plaintiff failed to establish a viable underlying dram shop case under the provisions of § 123.95, The Code, 1966, trial court relied on her omission to prove “the Kickapoo Tavern, whatever its correct corporate name may be, was or was not a licensee or permittee.”

It is true only licensees and permittees are liable under § 123.95, The Code, 1966, which relevantly provided:

“Every * * * wife * * * who shall be injured in * * * means of support * * * resulting from the intoxication of any * * * person, shall have a right of action * * * against any licensee or permittee who shall sell or give any beer or intoxicating liquor to any such person while he is intoxicated, or serve any such person to a point where such person is intoxicated for all damages actually sustained.”

Plaintiff’s petition in the case sub judice alleged Kickapoo Tavern was owned and operated by Northwest Sportsmen’s Club, Inc. (which defendants admitted) and that corporation was licensee and permittee of Kickapoo Tavern (which was denied).

But plaintiff also alleged she relied on the legal competency of defendants in employing them “to represent her interests for the purpose of recovering whatever amount she was entitled to recover from whomever was responsible to her under the statutes of the State of Iowa,” which was admitted in the answer, as were the allegations plaintiff thereafter assumed they were “diligently proceeding to negotiate a settlement with the various parties concerned, the identities of which Plaintiff left in the hands of the defendants to ascertain.” Defendants’ answer further admitted defendant Doyle was present on or about November 1, 1967 when plaintiff’s statement was taken by attorneys representing Northwest Sportsmen’s Club, Inc.

*110 Finally, defendants conceded in the pleadings the dram shop action they brought was instituted under the provisions of chapter 123, The Code.

Thus defendants, who admittedly had two years to carry out their responsibility to determine the proper party or parties defendant in the dram shop case, and who negotiated with the dram shop insurance carrier, belatedly instituted action under § 123.95, The Code, 1966, which case could only lie against a permittee or licensee. Had there been no licensee or permittee the available action, of course, would have been under § 129.2, The Code, 1966 (since repealed, see Acts 64 G.A., ch. 131, § 152).

The above facts are undisputed. The only inference which can be drawn therefrom, assuming trial court drew any inference, militates against defendants.

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Bluebook (online)
225 N.W.2d 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-beal-iowa-1975.