IRL R. SILVERSTEIN, PLC. v. Juarez

740 So. 2d 702, 1999 WL 346580
CourtLouisiana Court of Appeal
DecidedJune 1, 1999
Docket98-CA-1322
StatusPublished
Cited by4 cases

This text of 740 So. 2d 702 (IRL R. SILVERSTEIN, PLC. v. Juarez) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
IRL R. SILVERSTEIN, PLC. v. Juarez, 740 So. 2d 702, 1999 WL 346580 (La. Ct. App. 1999).

Opinion

740 So.2d 702 (1999)

IRL R. SILVERSTEIN, PLC., Irl R. Silverstein, PLC, Pension Benefit Plans, The R.C. Trust, and The P.L. Trust
v.
Paul L. JUAREZ.

No. 98-CA-1322.

Court of Appeal of Louisiana, Fifth Circuit.

June 1, 1999.
Rehearing Denied June 28, 1999.
Writ Denied November 5, 1999.

*703 Albert Dale Clary, David L. Guerry, Jennifer L. Vosburg, Long Law Firm, L.L.P., Baton Rouge, Louisiana, Attorneys for Defendant-Appellant, Paul L. Juarez, Jr.

Irl R. Silverstein, Gretna, Louisiana, Attorney for Plaintiffs-Appellees, Irl R. Silverstein, P.L.C., Irl R. Silverstein, R.C. Trust, P.L. Trust, Robert A. Caplan and Lewis & Caplan, a P.L.C.

Court composed of Judges H. CHARLES GAUDIN, CHARLES GRISBAUM, Jr. and SUSAN M. CHEHARDY.

CHEHARDY, Judge.

This is an appeal from a judgment against a guarantor of certain promissory notes, finding him liable for his virile share of the balance due, plus interest and attorney's fees. Defendant has appealed. We affirm.

Paul Juarez, defendant, was a member of Academy Mortgage Company, L.L.C., together with Irl R. Silverstein, Robert A. Caplan and Peter Lewis. Juarez served as manager of Academy until he was terminated from the position on September 24, 1996. Between 1985 and 1996 Juarez signed twelve promissory notes as guarantor, executed in favor of Silverstein, Caplan, Lewis or trusts of which they were trustees (Irl R. Silverstein, PLC, Pension Benefits Plans; the R.C. Trust; the P.L. Trust). On each of the notes which Juarez cosigned, at least one and usually two of the other partners/members also cosigned.

On September 24, 1996 Juarez was terminated from his position as manager of Academy and suit was filed against him on *704 behalf of Academy alleging mismanagement and breach of fiduciary duty (Academy Mortgage Company, L.L.C. v. Juarez, No. 499,090, 24th Judicial District Court, appeal filed as No. 99-CA-963 in this Court). Juarez impleaded Silverstein and Caplan in that suit, raising allegations of legal malpractice against them.[1]

On May 20, 1997 the payees on the promissory notes filed the instant suit (Silverstein v. Juarez, No. 509,297, 24th Judicial District Court, appeal filed as No. 99-CA-1322 in this Court) to collect on the promissory notes on which Juarez had signed as guarantor. During course of the litigation two of the notes mentioned in the original petition were determined to have been satisfied. The remaining notes were as follows:

Payee                    Date              Amount
Irl R. Silverstein PLC   09/17/84       20,000.00
Pension Benefit Plans
Robert A. Caplan         05/31/85      100,000.00
Pete Lewis               08/05/85       50,000.00
Irl R. Silverstein PLC   09/09/85       20,000.00
Pension Benefit Plans
Robert A. Caplan         09/20/85       25,000.00
Robert A. Caplan         11/26/85       40,000.00
Robert A. Caplan         12/03/85       25,000.00
Pete Lewis               03/20/86       50,000.00
Robert A. Caplan         02/29/88       10,000.00
Pete Lewis               07/1/96       100,000.00

(All the notes payable to Robert Caplan were indorsed over to the R.C. Trust and all the notes payable to Pete Lewis were indorsed over to the P.L. Trust.)

Juarez filed a third-party demand in this suit seeking security and indemnity from Academy and a reconventional demand seeking contribution from Silverstein, Caplan and Lewis. He also raised allegations of legal malpractice against Silverstein and Caplan.

Juarez sought consolidation of the two suits in the district court, but his motion to consolidate was denied. Each case thereafter proceeded to trial in separate divisions of the district court.

In the suit by Academy Mortgage against Juarez, the legal malpractice claims were rejected in the district court as prescribed. This court upheld that ruling on appeal, finding the causes of action had prescribed due to peremption. Academy Mortgage Company, L.L.C. v. Juarez, No. 98-963 (La.App. 5 Cir. 6/1/99), 740 So.2d 708.

In the case now before us, Silverstein and Caplan brought an exception of prescription as to the legal malpractice claims. On March 9, 1998 the trial court granted the exception regarding all the claims except those pertaining to the 1996 promissory note. On April 24, 1998 the court granted the exception of prescription as to the 1996 note, thus dismissing all the legal malpractice claims.

On May 7, 1998 the court rendered judgment on the merits of the main action, finding Juarez liable for his virile share of each note and awarding interest of 12% and attorney's fees of 20% on each note, plus casting Juarez for all costs. Juarez' motion for new trial was denied.

Juarez appeals the judgment of April 24, 1998 and the judgment of May 7, 1998. On appeal he asserts the trial judge erred in dismissing his legal malpractice claims and in finding him liable for his virile share on the promissory notes when no effort was made to pursue the maker or the other guarantors.

PRESCRIPTION/PEREMPTION

Juarez contends the court erred in granting the exception of prescription as to his claim regarding lack of proper legal advice on the 1996 promissory notes because, prior to ruling, the court heard evidence to determine whether there was an attorney-client relationship regarding that promissory note. Juarez contends that the court should not rule on an exception *705 of prescription without first determining the merits of the claim.

We note first that it is peremption rather than prescription that is applicable to legal malpractice claims. La. R.S. 9:5605 governs actions for legal malpractice. It provides that any action for damages against an attorney at law, whether based upon tort, breach of contract, or otherwise, arising out of an engagement to provide legal services must be filed "within one year from the date of the alleged act, omission, or neglect, or within one year from the date that the alleged act, omission, or neglect is discovered or should have been discovered." La. R.S. 9:5605(A). In all events, however, even as to actions filed within one year from the date of such discovery, "such actions shall be filed at the latest within three years from the date of the alleged act, omission, or neglect." Id. The statute specifies that the one-year and three-year periods of limitation are peremptive periods and thus may not be renounced, interrupted, or suspended.

The question of whether a cause of action is prescribed is considered separate and apart from other issues presented by a particular case. Dozier v. Ingram Barge Co., 96-1370 (La.App. 4 Cir. 1/28/98) 706 So.2d 1064, 1066.

Irl Silverstein testified that in the ten years prior to trial of this matter he handled several real estate transactions for Mr. and Mrs. Juarez. The last time he handled a matter for them was in April 1996, a real estate refinancing transaction in which he did a title examination, prepared closing documents, and handled the closing. He was never retained to provide advice or counsel regarding the execution of the promissory notes and never gave them legal advice on such. There were no written employment contracts. They did have a joint venture in which they owned real estate together. Silverstein was also the attorney for Academy Mortgage, but his duties consisted mostly of handling collections.

Robert Caplan testified that he was also an original partner in Academy, but generally did no legal work for the company. He handled two cases for the Juarez family.

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Bluebook (online)
740 So. 2d 702, 1999 WL 346580, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irl-r-silverstein-plc-v-juarez-lactapp-1999.