Channel v. Loyacono

954 So. 2d 415, 2007 WL 1151045
CourtMississippi Supreme Court
DecidedApril 19, 2007
Docket2005-CA-01395-SCT
StatusPublished
Cited by68 cases

This text of 954 So. 2d 415 (Channel v. Loyacono) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Channel v. Loyacono, 954 So. 2d 415, 2007 WL 1151045 (Mich. 2007).

Opinion

954 So.2d 415 (2007)

Sarenthia CHANNEL; Peggy Crist; Theresa Edwards; Patricia Guthrie; Jane Hamilton; Helen Heard; Alice McCraven; Bertha Mixon; Jennie Parker; James Reed, Jr.; Glenda Rivers; Molly Robinson; Pamela Robinson; Karen Thornton; Virginia Townsend; Vera Wells; Mary Whittington; Linda Williams; and Peggy Winters
v.
Paul Kelly LOYACONO and E. Scott Verhine.

No. 2005-CA-01395-SCT.

Supreme Court of Mississippi.

April 19, 2007.

*417 Ronald W. Lewis, David G. Hill, David Minyard, Oxford, attorneys for appellants.

Glenn Gates Taylor, Christy Michelle Sparks, Ridgeland, attorneys for appellees.

Before COBB, P.J., EASLEY and GRAVES, JJ.

*418 COBB, Presiding Justice, for the Court.

¶ 1. The Hinds County Circuit Court, First Judicial District, dismissed with prejudice the plaintiffs'[1] claims of legal malpractice against defendant attorneys Paul Kelly Loyacono and E. Scott Verhine. In granting the defendants' Motion to Dismiss, or Alternatively, for Summary Judgment the circuit court found that the plaintiffs' claims were barred by: (1) the statute of limitations, (2) res judicata and collateral estoppel, (3) waiver and estoppel, (4) accord and satisfaction, and (5) settlement and release. We affirm in part and reverse and remand in part.

FACTS

¶ 2. In February and March 2000, Loyacono and Verhine, attorneys in Vicksburg, contracted with approximately fifty individuals to represent them against American Home Products (AHP) for alleged injuries resulting from the use of certain diet drugs produced by AHP, including "Fenphen," Pondimin, and Redux. These contracts authorized Loyacono and Verhine to hire additional counsel to litigate the claims. Loyacono and Verhine associated the law firm of Varas and Morgan to assist with the AHP claims in May 2000. In this at-will association, Loyacono and Verhine never transferred to Varas and Morgan any of the representation contracts, and Varas and Morgan never entered into representation contracts with the clients.

¶ 3. Varas and Morgan filed lawsuits against AHP on behalf of numerous plaintiffs, including the clients of Loyacono and Verhine.[2] Loyacono and Verhine became dissatisfied with the way Varas and Morgan were handling the claims. In November 2000, Loyacono and Verhine decided to disassociate from Varas and Morgan and deal directly with AHP. Varas and Morgan were given written notice of the termination of the association on January 4, 2001.[3]

¶ 4. In late November and early December 2000, Loyacono and Verhine began settlement discussions with AHP. At that time, Loyacono and Verhine obtained settlement offers from AHP and began meeting with each client to discuss the settlement offers. Loyacono and Verhine explained to each client that the client had the option of accepting the offer or rejecting the settlement offer and holding out for more money and possibly a trial. The clients were advised of the risks and benefits of refusing the settlement offer, including the possibility that the offer would not be made again, that their claims could take months or even years to be resolved, and that representatives for AHP had mentioned the possibility of bankruptcy. Loyacono and Verhine also made clear that they would continue to *419 pursue the claims of the clients who chose not to settle.

¶ 5. Some clients chose not to accept the settlement offer, and Loyacono and Verhine went back to AHP demanding higher settlements. Loyacono and Verhine were able to get higher offers which some of these clients found acceptable. Some of the clients refused the new offer and rejected settlement altogether. Ultimately, all of the plaintiffs in this action ("the clients") settled. Each of the clients received their funds on January 26, 2001.

¶ 6. Varas and Morgan contacted the settling clients of Loyacono and Verhine. In late December 2000, Varas and Morgan began their effort to get the clients to fire Loyacono and Verhine and allow Varas and Morgan to represent them. Varas and Morgan also wanted to find out how much money had been offered to each of the clients by AHP and tried to persuade the clients to reject the settlement offers.

¶ 7. In late January 2001, Varas and Morgan filed motions in two of the prior actions, Green and Williams, see n. 2 supra, challenging Loyacono and Verhine's right to represent the clients and the validity of the settlement agreements negotiated by Loyacono and Verhine. An identical motion was filed in the third of the prior actions, Harried, in December of 2003.[4] The motions accused Loyacono and Verhine of acting dishonestly, negligently, and fraudulently in negotiating the settlements.

¶ 8. A hearing was held in the circuit court on January 18, 2002, regarding the motions in Green and Williams. The hearing in Harried was held in March of 2004. Most of the clients attended these hearings and challenged the validity of the settlement agreements. Many of the clients actually testified at the hearings.[5] While all of the clients testified that Loyacono and Verhine had acted dishonestly, negligently, and fraudulently in negotiating their settlements, each of them testified that they had signed their settlement agreements, received the proceeds, and considered their cases settled. None of the clients offered to return or refund any of the proceeds. The signed settlement agreements, receipt of settlement funds agreements, and representation agreements with Loyacono and Verhine were entered into evidence.

¶ 9. The circuit court ruled on the motions in Green and Williams in March 2004. It held that Loyacono and Verhine were the clients' attorneys; that Loyacono and Verhine negotiated the settlement agreements; and that the clients knowingly and voluntarily agreed to and signed the settlement agreements, received the monies that were under the settlement agreements, and considered their respective claims settled. The same ruling was made on the Harried motion in April 2004. Pursuant to Rule 54(b), final judgment was entered on each of the motions. The clients did not appeal.

¶ 10. The legal malpractice action presently before this Court was filed in Hinds County on January 5, 2004. The clients asserted claims against Loyacono and Verhine for legal malpractice, negligence, and conspiracy in connection with the settlement agreements. On June 15, 2004, Loyacono and Verhine filed their Motion to Dismiss, or, Alternatively, for Summary *420 Judgment on the grounds that, both as a matter of law and undisputed fact, that the clients' claims were barred by the statute of limitations, res judicata, collateral estoppel, waiver and estoppel, accord and satisfaction, and settlement and release.

¶ 11. The Circuit Court of the First Judicial District of Hinds County held that any alleged malpractice, fraud, or negligence by Loyacono and Verhine would have occurred in November and December 2000 when Loyacono and Verhine negotiated and obtained settlement offers and presented them to the clients for acceptance or rejection; the clients presented no evidence to show that Loyacono and Verhine committed any negligent or fraudulent acts or omissions after the conclusion of the settlement negotiations and presentations in December 2000; and that the clients' claims were without merit and were barred by the defenses raised by Loyacono and Verhine. The clients appeal from the judgment of the circuit court.

STANDARD OF REVIEW

¶ 12.

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Cite This Page — Counsel Stack

Bluebook (online)
954 So. 2d 415, 2007 WL 1151045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/channel-v-loyacono-miss-2007.