Belden v. Emmerman

560 N.E.2d 1180, 203 Ill. App. 3d 265, 148 Ill. Dec. 583, 1990 Ill. App. LEXIS 1421
CourtAppellate Court of Illinois
DecidedSeptember 18, 1990
Docket1-89-1118
StatusPublished
Cited by44 cases

This text of 560 N.E.2d 1180 (Belden v. Emmerman) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belden v. Emmerman, 560 N.E.2d 1180, 203 Ill. App. 3d 265, 148 Ill. Dec. 583, 1990 Ill. App. LEXIS 1421 (Ill. Ct. App. 1990).

Opinion

PRESIDING JUSTICE DiVITO

delivered the opinion of the court:

Plaintiffs Benjamin Belden (Belden) and Adler Center for Behavior Modification (Adler) brought this action against their former attorneys alleging legal malpractice, breach of contract, breach of fiduciary duty, and fraud. The circuit court granted defendants’ motions to dismiss plaintiffs’ third amended complaint pursuant to section 2 — 619 of the Code of Civil Procedure (September 18, 1990. Rev. Stat. 1987, ch. 110, par. 2 — 619), on the basis that the complaint was time barred. On appeal, plaintiffs contend that the circuit court erred in holding that the statute of limitations had run on their claims.

The underlying facts of this case are as follows. Belden was the president of Adler, which was in the business of providing psychotherapy. Its offices were located at 310 South Michigan Avenue in Chicago. On May 2, 1982, Adler was notified that its lease would be terminated. On May 20, 1982, Adler’s lease was terminated following a dispute over storage space. Thereafter, the landlord accepted Adler’s rent payments for the months of May, June, and July.

On July 7, 1982, Adler retained defendants Howard Emmerman and Rudnick & Wolfe (jointly Rudnick & Wolfe) to represent it in the lease dispute. On July 12, Adler’s electricity was cut off. On July 13, some of its office fixtures were removed and its employees were locked out. That same day, Rudnick & Wolfe obtained a temporary restraining order against the landlord; despite that order, the landlord continued to oust Adler from possession of the leased office space.

On July 14, a rule to show cause was filed against the landlord and the hearing was continued until the following day. Rudnick & Wolfe then discovered that it had previously represented the landlord and filed a motion to withdraw as counsel. Rudnick & Wolfe recommended as substitute counsel defendants Michael Weissman and Weissman & Pond (jointly Weissman). On July 15, Belden and Weissman appeared for the scheduled hearing. However, no hearing occurred; instead, a settlement conference was held.

Belden, accompanied by attorneys from Rudnick & Wolfe, remained in the courtroom while settlement negotiations occurred in the judge’s chambers. Belden and Weissman conferred during the negotiations. Following the discussions in chambers, the circuit court vacated the temporary restraining order; ordered Adler to vacate the leased space in five days; ordered the landlord to pay Adler $9,500 as damages, $500 as a partial refund for July’s paid rent, and $1,050 as a refund of the security deposit; dismissed Adler’s complaint with prejudice; ordered the landlord to return all of Adler’s property; and ordered the parties to execute mutual general releases. Belden refused to execute a release and maintains that, despite the advice of Weissman and Rudnick & Wolfe, he did not consent to the settlement agreement.

Plaintiffs contend that on July 21, 1982, Rudnick & Wolfe continued to advise plaintiffs to execute the release, even though the firm had withdrawn from the litigation approximately one week earlier. Belden refused to act upon that advice.

On August 13, 1982, Weissman moved to vacate the July 15, 1982, settlement order and also moved to withdraw as counsel. The circuit court continued the motion to vacate and granted the motion to -withdraw. Thereafter, another law firm filed an appearance on Adler’s behalf. On September 24, 1982, an amended motion to vacate was filed and was subsequently denied.

Adler appealed from the circuit court’s order denying its amended motion to vacate. Adler argued that the negotiations were adversely affected by Rudnick & Wolfe’s presence, resulting in a gross disparity in bargaining positions because of its former representation of the landlord and that Weissman was the “alter ego” of Rudnick & Wolfe. (Adler Center for Behavior Modification, Inc. v. Chicago Title & Trust Co. (1984), 129 Ill. App. 3d 1024, 1027, 473 N.E.2d 378, 380.) We affirmed on December 18, 1984, and on January 22, 1985, we denied Adler’s motion for a rehearing.

On August 7, 1987, plaintiffs’ new attorneys filed this action. On May 20, 1988, following an amended pleading, these attorneys withdrew. Thereafter, plaintiffs’ present counsel filed a third amended complaint alleging legal malpractice, breach of contract, breach of fiduciary duty, and fraud. Defendants filed motions to dismiss under section 2 — 619 asserting that plaintiffs’ claims were untimely and that they were collaterally estopped from relitigating the validity of the settlement order. On March 31, 1989, the circuit court dismissed the complaint with prejudice based upon the period of limitations bar. This appeal followed.

I

Plaintiffs first maintain that the five-year statute of limitations period (Ill. Rev. Stat. 1983, ch. 110, par. 13 — 205 (eff. July 1, 1982)) did not commence until January 22, 1985, the day we denied Adler’s motion for a rehearing. Plaintiffs argue that the damage element of their legal malpractice claim was not present or known to them prior to that day.

Initially, we note that the elements of a claim of legal malpractice are: (1) the existence of an attorney-client relationship, (2) a breach of a duty arising from that relationship, (3) causation, and (4) damages. (Jackson Jordan, Inc. v. Leydig, Voit & Mayer (1990), 199 Ill. App. 3d 728, 732-33, (and cases cited therein); Coughlin v. SeRine (1987), 154 Ill. App. 3d 510, 514, 507 N.E.2d 505, 508; Bartholomew v. Crockett (1985), 131 Ill. App. 3d 456, 465, 475 N.E.2d 1035, 1041.) The various districts of the appellate court of this State have taken different views in determining when a cause of action for legal malpractice accrues under section 13 — 205 of the Code of Civil Procedure. Compare Dolce v. Gamberdino (1978), 60 Ill. App. 3d 124, 126, 376 N.E.2d 273, 275, with Tucek v. Grant (1984), 129 Ill. App. 3d 236, 240, 472 N.E.2d 563, 566.

The first district has held that legal malpractice actions ordinarily accrue “when the attorney breaches its duty.” (Jackson Jordan, Inc., 199 Ill. App. 3d at 733; Zupan v. Berman (1986), 142 Ill. App. 3d 396, 399, 491 N.E.2d 1349, 1351, citing West American Insurance Co. v. Sal E. Lobianco & Son Co. (1977), 69 Ill. 2d 126, 132, 370 N.E.2d 804, 807; Dolce v. Gamberdino, 60 Ill. App. 3d at 126, 376 N.E.2d at 275.) The second district has taken the position that “ ‘a cause of action for legal malpractice does not accrue until the client discovers, or should discover, the factors establishing the elements of his cause of action.’ ” (Tucek v. Grant (1984), 129 Ill. App. 3d 236, 240, 472 N.E.2d 563

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Cite This Page — Counsel Stack

Bluebook (online)
560 N.E.2d 1180, 203 Ill. App. 3d 265, 148 Ill. Dec. 583, 1990 Ill. App. LEXIS 1421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belden-v-emmerman-illappct-1990.