Iliescu, Jr. Vs. Hale Lane Peek Dennison And Howard Prof'L Corp.

CourtNevada Supreme Court
DecidedJanuary 23, 2020
Docket76146
StatusPublished

This text of Iliescu, Jr. Vs. Hale Lane Peek Dennison And Howard Prof'L Corp. (Iliescu, Jr. Vs. Hale Lane Peek Dennison And Howard Prof'L Corp.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iliescu, Jr. Vs. Hale Lane Peek Dennison And Howard Prof'L Corp., (Neb. 2020).

Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

JOHN ILIESCU, JR., INDIVIDUALLY, No. 76146 AND JOHN ILIESCU, JR. AND SONNIA ILIESCU AS TRUSTEES OF THE JOHN ILIESCU, JR. AND SONNIA ILIESCU 1992 FAMILY TRUST AGREEMENT, FILED Appellants, JAN 2 3 2020 vs. ELIZABETH IV BROWN HALE LANE PEEK DENNISON AND CLERK OF,. 5UPREME COURT BY _ Y HOWARD PROFESSIONAL ÐEPUr9: filn' CORPORATION, D/B/A HALE LANE, Res • ondent.

ORDER OF AFFIRMANCE This is an appeal from a district court order granting summary judgment in a legal malpractice action. Second Judicial District Court, Washoe County; Elliott A. Sattler, Judge. This action stems from a failed real estate transaction initiated in 2005.1 Appellants, John Iliescu, Jr., et al., (collectively, Iliescu) retained respondent law firm Hale Lane Peek Dennison and Howard (Hale Lane) in an attempted sale of Iliescu's undeveloped property in downtown Reno. The would-be purchaser, who planned to develop a high-rise condominium project on the property, contracted with an architectural firm to perform off- site design services for the planned development. Hale Lane represented both Iliescu and the would-be purchaser. After the would-be purchaser

1We recounted in greater detail the underlying facts surrounding the proposed transaction in Riescu v. Steppan, 133 Nev. 182, 183-85, 394 P.3d 930, 932-33 (2017). Here, we need only recite the facts relevant to this case. SUPREME COURT OF NEVADA

(01 1947A ‘17, 2o-o3 too failed to obtain financing and the proposed sale fell through, architect Mark Steppan filed a $1.8 million mechanic's lien against Iliescu's property for unpaid fees. Hale Lane attempted to expunge the mechanic's lien, arguing that it was filed without statutorily required notice, and that a legal exception excusing strict compliance with pre-lien notice requirements2 did not apply. The district court rejected Hale Lane's attempt to expunge the lien and ordered further discovery in the action to foreclose the mechanic's lien. Iliescu replaced Hale Lane with new counsel and moved forward with the litigation challenging the mechanic's lien. Iliescu also filed a third-party complaint against Hale Lane for professional malpractice and negligence, alleging Hale Lane negligently executed the failed transaction, specifically in failing to advise Iliescu to protect against a mechanic's lien by filing a notice of non-responsibility, and subsequently failing to expunge the mechanic's lien. The mechanic's lien suit proceeded while the professional negligence action against Hale Lane was stayed. After this court decided Iliescu v. Steppan, 133 Nev. 182, 394 P.3d 930 (2017), in favor of Iliescu, invalidating the mechanic's lien and holding that the Fondren exception did not apply to offsite design services, Hale Lane moved for summary judgment in the professional negligence action. Hale Lane argued that its original attempt to expunge the lien should have succeeded, and that this court's decision in Iliescu v. Steppan validated its earlier argument, which the district court rejected. The

2Under our holding in Fondren v. K/L Complex Ltd., 106 Nev. 705,

710, 800 P.2d 719, 721-22 (1990), a lien claimant may be excused from strictly complying with statutory pre-lien notice requirements where a property owner has actual notice of the work the lien claimant performed and for which the lien is filed (the Fondren exception). SUPREME COURT OF NEVADA 2 (01 I947A asgiiiOn district court agreed with Hale Lane and determined that, despite any purported negligence on Hale Lane's part, once the district court erroneously rejected Hale Lane's legal argument, there was no causal connection between any alleged transactional negligence and Iliescu's litigation damages. The district court also rejected Iliescu's NRCP 15(a) motion to amend his pleadings, and Iliescu's NRCP 56(f) motion for more time to complete discovery and to secure an expert witness to establish the appropriate standard of care. Iliescu now appeals. DISCUSSION Iliescu challenges the district court's order granting summary judgment for Hale Lane. The district court determined summary judgment was appropriate in light of Iliescu's failure to establish the proximate causation element of his legal malpractice action. We review a district court's decision to grant summary judgment de novo. Wood u. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005). Summary judgment is appropriate where, viewed in a light most favorable to the nonmoving party, the pleadings and all other evidence on file demonstrate no genuine issue of material fact exists and the moving party is entitled to summary judgment as a matter of law. Id. To succeed on his legal malpractice claims against Hale Lane, Iliescu must establish: (1) the existence of an attorney-client relationship; (2) a duty owed to Iliescu to use such skill, prudence, and diligence as lawyers of ordinary skill and capacity possess; (3) a breach of such duty; (4) that the breach proximately caused damages to Iliescu; and (5) actual loss or damages. Day u. Zubel, 112 Nev. 972, 976, 922 P.2d 536, 538 (1996). The district court granted summary judgment for Hale Lane solely on the issue of causation, concluding that the district court's prior judicial error

SUPREME COURT OF NEVADA 3 (01 I447.4 ‘`sever[ed] the causal connection between the alleged legal malpractice and Iliescu's claimed damages." We need only address the causation issue here. Proximate causation in legal malpractice actions Iliescu alleges that Hale Lane committed professional malpractice by negligently representing Iliescu during the failed real estate transaction, and during subsequent litigation to expunge the mechanic's lien. Iliescu argues that Nevada treats litigation malpractice and transactional malpractice differently for purposes of establishing proximate causation. Specifically, Iliescu argues that Hale Lane could have taken various preventive measures during the failed real estate transaction to protect against the risk of a mechanic's lien, and that Hale Lane's alleged transactional negligence should be subject to a substantial factor test for causation, rather than the but-for test. We are not persuaded that different standards for proximate causation control in this case. To satisfy the causation element, Iliescu must prove that "but foe Hale Lane's negligence, Iliescu would have achieved a better result in the underlying action. Orrick Herrington & Sutcliffe LLP v. Superior Court, 132 Cal. Rptr. 2d 658, 661 (Ct. App. 2003). It is not enough to show that the attorney "might have erred, exposing [the plaintiff] to possible future claims." kl. at 662. Instead, in both litigation and transactional malpractice cases, the plaintiff must prove that "but for" the alleged malpractice, "the harm or loss would not have occurred." Viner v. Sweet, 70 P.3d 1046, 1048 (Cal. 2003). The "but foe standard prevents "damages based on pure speculation and conjecture." Orrick Herrington & Sutcliffe LLP, 132 Cal. Rptr.2d at 661. While litigation malpractice and transactional or non- adversarial malpractice are treated differently for purposes of tolling the

SUPREME COURT OF NEVADA 4 (0) I947A statute of limitations in an attorney negligence action, Moon v. McDonald, Carano & Wilson LLP, 129 Nev. 547, 551-52, 306 P.3d 406, 409-10 (2013), courts do not distinguish transactional and litigation malpractice for purposes of determining proximate cause. Frederick u. Wallerich, 907

N.W.2d 167, 173 (Minn.

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Iliescu, Jr. Vs. Hale Lane Peek Dennison And Howard Prof'L Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/iliescu-jr-vs-hale-lane-peek-dennison-and-howard-profl-corp-nev-2020.