Bourne v. Melli Law, S.C.

2019 WI App 1, 923 N.W.2d 177, 385 Wis. 2d 210
CourtCourt of Appeals of Wisconsin
DecidedNovember 21, 2018
DocketAppeal No. 2017AP1166
StatusPublished

This text of 2019 WI App 1 (Bourne v. Melli Law, S.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bourne v. Melli Law, S.C., 2019 WI App 1, 923 N.W.2d 177, 385 Wis. 2d 210 (Wis. Ct. App. 2018).

Opinion

BLANCHARD, J.

¶1 This appeal follows a jury trial involving two, related legal malpractice actions. In one action, James Bourne and Madison Homes, Inc. (Bourne) sued Philip Bradbury and Melli Law, S.C. (Bradbury), alleging that Bradbury negligently represented Bourne in connection with Bourne's taking a buy-out of his membership in a company. In the other action, Bourne sued the law firm Hinshaw & Culbertson, alleging that Hinshaw missed the statute of limitations deadline in commencing Bourne's malpractice action against Bradbury. The circuit court consolidated the two malpractice actions for purposes of a jury trial to resolve one issue common to both: whether Hinshaw failed to serve Bradbury with the summons and complaint in Bourne's action against Bradbury before the statute of limitations barred the action. The jury found that Hinshaw met the statute of limitations deadline. As a result of this verdict, the court entered a non-final order stating that Bradbury could not use the statute of limitations as a defense in subsequent litigation between Bourne and Bradbury. We granted leave to appeal and Bradbury appeals.

¶2 Bradbury argues that the circuit court erred by deciding to consolidate the two malpractice actions for purposes of the statute of limitations trial and in using certain language for the special verdict form, which was based on a pattern instruction. Bradbury also argues that the court erroneously exercised its discretion in: denying his motions for mistrial and to withdraw from a stipulation to hold the statute of limitations trial, based on Bradbury's position that Bourne and Hinshaw both pursued an improper "trial strategy"; denying Bradbury's motions for mistrial or continuance, based on use of exhibits not identified as exhibits before trial; setting the order of proof at trial; and admitting statements that Bradbury contends are hearsay. Bradbury requests that we reverse and remand "for further proceedings regarding all issues," including a retrial on the statute of limitations issue.

¶3 We conclude that the circuit court properly consolidated the two actions, consistent with WIS. STAT. § 805.05 (2015-16), for the limited purpose of resolving the statute of limitations issue, and that the pattern special verdict form that the court gave accurately conveyed the pertinent law to the jury.1 We further conclude that the court did not erroneously exercise its discretion in denying Bradbury's motion relating to "trial strategy" pursued by Bourne and Hinshaw, allowing into evidence exhibits not specifically identified before trial, setting the order of proof, and admitting the alleged hearsay statements. Accordingly, we affirm.

BACKGROUND

¶4 We briefly summarize pertinent facts alleged in the two legal malpractice actions before turning to additional events leading to this appeal.

First Malpractice Action: Bourne Against Attorney Bradbury

¶5 Bourne was one of four members of a company. Bourne learned that two other members intended to vote to remove him from the company, and that they purportedly had the votes to do this because the fourth member, Sweeney, supported Bourne's removal. Aiming to salvage what he could from what he understood to be a bad situation, Bourne retained Bradbury to negotiate a buy-out of Bourne's ownership interest. Bradbury helped negotiate a buy-out agreement, which Bourne executed on July 23, 2003. However, months later, Bradbury and Bourne were told that Sweeney would not have voted to force out Bourne. In other words, Bourne alleges that he eventually learned that he had not needed to negotiate a buy-out on terms that were disadvantageous to him, based on the false premise that he was about to be forced out by the other three members.

¶6 The above facts, with emphasis on the allegedly missing information about Sweeney's actual views in advance of the buy-out, formed the basis for Bourne's eventual claim that Bradbury was negligent in representing Bourne in connection with the buy-out.

Second Malpractice Action: Bourne Against The Hinshaw Firm

¶7 Bourne hired Hinshaw to sue Bradbury for legal malpractice based on the allegations summarized above. Hinshaw filed a complaint against Bradbury on July 22, 2009. This would have been within the applicable statute of limitations by one day, see WIS. STAT. § 893.52(1), except that Hinshaw failed to timely serve the summons and complaint on Bradbury. Hinshaw refiled Bourne's suit against Bradbury on December 17, 2009, and this time successfully served the summons and complaint on Bradbury.

¶8 Bradbury asserted against Bourne the affirmative defense that the statute of limitations barred the second filed action. The circuit court ruled for Bradbury, granting his summary judgment motion and dismissing Bourne's claim based on the statute of limitations defense.

¶9 The above facts formed the basis for Bourne's claim in the second malpractice action, alleging that Hinshaw was negligent in failing to timely file and serve the summons and complaint against Bradbury.

Further Events

¶10 Bourne appealed the circuit court's dismissal of the action against Bradbury. We reversed and remanded for further proceedings, based on our determination that genuine issues of material fact existed regarding the "discovery rule" and its application to the pertinent statute of limitations period.2 See Bourne v. Melli Law, S.C. , No. 2014AP2861, unpublished slip op. ¶ 16 (WI App. Jan. 14, 2016) (insufficient evidence "compel[ed] the inference" that Bourne had an "objective belief" that his malpractice claim against Bradbury had accrued by December 17, 2003).

¶11 After remand, Bourne and Bradbury stipulated to bifurcate trial into a first trial, devoted to the statute of limitations issue, and a second trial, if needed, on the merits of Bourne's malpractice claim against Bradbury in connection with the buy-out.

¶12 After the circuit court accepted the stipulation between Bourne and Bradbury, Hinshaw moved to consolidate Bourne's two malpractice actions. This would allow Hinshaw to participate in the statute of limitations trial along with Bourne and Bradbury. Bradbury opposed Hinshaw's motion to consolidate. The court rejected Bradbury's opposition and ordered consolidation.

¶13 With the two actions consolidated for purposes of an initial statute of limitations trial, the second trial (the one after the statute of limitations trial) would now resolve one of two issues. If the jury at the first trial determined that the statute of limitations is not a bar, the second trial would resolve the merits of Bourne's claim against Bradbury. But if the jury found that the statute of limitations is a bar, then the second trial would resolve the merits of Bourne's claim against Hinshaw.

¶14 At the statute of limitations trial, Bourne and Hinshaw both argued that Hinshaw did not miss the statute of limitations in commencing Bourne's suit against Bradbury. Bradbury alone argued to the contrary.

¶15 The circuit court instructed the jury with pattern instruction WIS. JI-CIVIL 950, which informs the jury how to evaluate a claim that a plaintiff used reasonable diligence in discovering an injury before a statute of limitations allegedly lapsed, and incorporates a proposed special verdict form on this topic.

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Bluebook (online)
2019 WI App 1, 923 N.W.2d 177, 385 Wis. 2d 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bourne-v-melli-law-sc-wisctapp-2018.