Kolschefsky v. Harris

2003 WY 86, 72 P.3d 1144, 2003 Wyo. LEXIS 103, 2003 WL 21649121
CourtWyoming Supreme Court
DecidedJuly 15, 2003
Docket02-23
StatusPublished
Cited by6 cases

This text of 2003 WY 86 (Kolschefsky v. Harris) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kolschefsky v. Harris, 2003 WY 86, 72 P.3d 1144, 2003 Wyo. LEXIS 103, 2003 WL 21649121 (Wyo. 2003).

Opinions

GOLDEN, Justice.

[¶1] Delores A. Kolschefsky and Dwayne H. Kolschefsky (Kolschefskys) filed a legal malpractice action against Mark W. Harris and Harris Law Firm, P.C. (Harris), claiming Harris was negligent in failing to file a medical malpractice claim on their behalf within the period of the statute of limitations. The district court entered summary judgment against Kolschefskys on the grounds that their voluntary bankruptey petition constituted an anticipatory breach or repudiation of the contingent fee agreement with their attorney, discharging him from any further performance as their attorney. We affirm the summary judgment for that reason and on the additional grounds that the Kolschef-skys' interest in the underlying medical malpractice claim was transferred by operation of law to their bankruptcy estate.

ISSUES

[¶2] Kolschefskys state numerous issues:

® Should the lower court have even considered the summary judgment motion which was untimely raised?
e Did the filing of the bankruptcy reject the fee agreement and, if so, what is the effect of the rejection?
e Did Harris re-affirm the fee agreement by his actions?
e Was Harris required to give notice in writing of his termination of the fee agreement?
e Do the Rules of Professional Responsibility have any applicability?
e Do the Rules Governing Contingency Fee Agreements have any applicability?
e Did Harris act as the Kolschefskys' attorney both before and after the filing of the bankruptey petition?
e Even if the defense is deemed to have been timely asserted, then does the fact that the executory fee agreement was rejected nullify the attorney's responsibilities?
e Did Harris continue to represent the clients even after the bankruptey petition was filed, and, if so, what is the effect of his continued representation?

Appellees state the issue from their perspective:

Was the district court correct in ruling that there was no genuine issue of material fact and that the Appellees were entitled to summary judgment as a matter of law?

FACTS

[¶3] Delores Kolschefsky was allegedly injured on May 13, 1998, while undergoing chiropractic manipulation to her neck. On June 15, 1998, the Kolschefskys consulted with Attorney Harris, who agreed to represent them regarding a possible medical malpractice claim against the chiropractor. The Kolschefskys and Harris signed a written contingent fee representation agreement on June 18, 1998. Pursuant to the applicable statute of limitations, Wyo. Stat. Ann. § 1-3-107 (LexisNexis 2001), any action against the chiropractor would have had to be brought within two years of the alleged injury date of May 13, 1998.

[¶4] Between June 1998 and August 1999, Harris investigated Kolschefskys' case and attempted to obtain a medical expert to testify regarding the chiropractic standard of care and its breach. The sufficiency and reasonableness of those efforts is contested by the parties, as is Harris' statement that he terminated his representation agreement with the Kolschefskys verbally in August 1999. Nevertheless, it is undisputed that on November 16, 1999, Kolschefskys filed a joint petition for Chapter 7 liquidation in the United States Bankruptcy Court for the District of Wyoming. Despite the bankruptcy filing, Kolschefskys and Harris continued to have some limited discussions about the medical malpractice claim, and Harris made at least one contact to a potential expert witness on [1146]*1146their behalf in May 2000. Harris then returned their file to Kolschefskys in July 2000.

[¶5] Kolschefskys filed their bankruptcy pro se; they did not consult with or inform Harris before the filing or seek any bank-ruptey advice from him after the filing. Mrs. Kolschefsky prepared the bankruptcy petition and schedules with the help of an instructional book and forms that she had purchased. In their bankruptcy filings, the Kol-schefskys did not disclose as an asset their medical malpractice claim against the chiropractor or any legal malpractice claim against Harris. They also did not identify the contingent fee agreement with Harris either as a liability or an executory contract. Harris was listed as an unsecured creditor in the amount of $298 for costs he advanced in the medical malpractice matter.

[¶6] The bankruptcy trustee appointed to administer Kolschefskys case filed his case report with the bankruptey court on February 15, 2000, indicating that there were no assets to be administered for distribution to creditors and that all scheduled property should be abandoned back to the debtors. A Discharge of Debtor was issued by the bank-ruptey court on March 15, 2000, and the bankruptey case was closed on March 22, 2000.

STANDARD OF REVIEW

[T7] In reviewing summary judgment, we apply the same standards as the trial court, without affording any deference to the trial court's decisions on issues of law. Bevan v. Fix, 2002 WY 43, ¶ 18, 42 P.3d 1013, ¶ 13 (Wyo.2002). In Bevan we stated:

Summary judgment is appropriate if the record, viewed in the light most favorable to the non-moving party, reveals that no genuine issues of material fact exist and the prevailing party is entitled to judgment as a matter of law. Worley v. Wyoming Bottling Co., Inc., 1 P.3d 615, 620 (Wyo.2000) Terry v. Pioneer Press, Inc., 947 P.2d 273, 275 (Wyo.1997); Davis v. Wyoming Medical Center, Inc., 934 P.2d 1246, 1250 (Wyo.1997); W.R.C.P. 56(c). A fact is material if it establishes or refutes an essential element of a claim or defense. Tidwell v. HOM, Inc., 896 P.2d 1322, 1324 (Wyo.1995).

Id. Moreover, we may uphold the grant of summary judgment upon any proper legal ground finding support in the record. Id. at 11 26, 42 P.8d 1018.

DISCUSSION

[¶8] The district court granted defendants' summary judgment based upon the effect of Kolschefskys' bankruptcy filing on the representation agreement between them and Harris. We concur with the district court's analysis.

[¶9] We have held that in a legal malpractice action, although the standard of care sounds in tort when it is stated in terms of a reasonably competent attorney, the basis of the action is contractual and an attorney/client relationship is an essential element for maintenance of the lawsuit. Bowen v. Smith, 838 P.2d 186, 196 (Wyo.1992); Brooks v. Zebre, 792 P2d 196, 201 (Wyo.1990). Viewing the facts in the light most favorable to the Kolschefskys, we accept that Harris had a valid attorney/client contract with them in November 1999 when they filed for bank-ruptey. That contract was executory in that both sides' performance obligations had yet to be fulfilled.

[¶10] Upon commencement of a bank-ruptey case, the bankruptcy trustee has authority to assume or reject the debtor's exec-utory contracts and leases. 11 U.S.C. § 865(a) (2000).

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2003 WY 86, 72 P.3d 1144, 2003 Wyo. LEXIS 103, 2003 WL 21649121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolschefsky-v-harris-wyo-2003.