Latter v. ABC Ins. Co.

719 So. 2d 653, 1998 WL 677796
CourtLouisiana Court of Appeal
DecidedSeptember 30, 1998
Docket97-CA-1968
StatusPublished
Cited by2 cases

This text of 719 So. 2d 653 (Latter v. ABC Ins. Co.) 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
Latter v. ABC Ins. Co., 719 So. 2d 653, 1998 WL 677796 (La. Ct. App. 1998).

Opinion

719 So.2d 653 (1998)

Stanford LATTER and Robert L. Yuspeth
v.
ABC INSURANCE CO., J.B. Kiefer, Ann W. Schneider, and Kiefer & Rudman, a Professional Law Corporation.

No. 97-CA-1968.

Court of Appeal of Louisiana, Fourth Circuit.

September 30, 1998.

*654 Thomas A. Gennusa, II, Gina A. Gennusa, Metairie, for Plaintiffs-Appellees.

Paul B. Deal, Lemle & Kelleher, L.L.P., New Orleans, for Defendants-Appellants.

Before KLEES, BYRNES and LOBRANO, JJ.

LOBRANO, Judge.

This case was remanded by the Supreme Court because our original opinion erroneously designated September 13, 1993, rather than September 3, 1993, as the date suit was filed. Based on that erroneous date we granted defendant's exception of peremption, reversed the trial court's judgment in plaintiffs' favor and dismissed their lawsuit. We relied on the Supreme Court's decision in Reeder v. North, 97-0239 (La.10/2/97), 701 So.2d 1291. For the following reasons, we now reverse our original holding and affirm the trial court judgment.

FACTS AND PROCEDURAL HISTORY:

In June of 1983, Stanford Latter and Robert L. Yuspeth, plaintiffs, retained J.B. Kiefer and his law offices, defendants, to represent them in a claim against the State for rental arrearages and utility cost reimbursement. The plaintiffs' claim against the State arose as a result of a lease agreement wherein the State, through the Department of Health and Human Resources (DHHR), agreed to lease office space from plaintiffs.

Pursuant to a bid proposal, the State and plaintiffs executed a lease agreement for a five year term commencing November 1, 1981 and ending October 31, 1996. The first page of the lease provides a date of August 14, 1981 as the execution date, but the last page shows a date of September 1, 1981. Regardless, at least by September 1st the lease was signed by plaintiffs and R.P. Guissinger, Secretary of DHHR. Despite the fact that November 1, 1981 was the beginning date of the lease, the Department of Administration did not approve the lease until April 13, 1982 and the State did not take occupancy until July 15, 1982.

Kiefer, on plaintiffs' behalf, filed suit on November 18, 1985 seeking recovery for lost rent and utility expenses incurred from November 1, 1981 to July 15, 1982. The State responded with a peremptory exception of prescription which the trial court granted on September 13, 1991. A written judgment dismissing plaintiffs' suit was signed on October *655 4, 1991. Kiefer continued to represent plaintiffs and appealed to the First Circuit Court of Appeal. On March 12, 1993 that court affirmed the trial court judgment. On May 21, 1993 the Supreme Court denied writs.

Plaintiffs then filed the instant malpractice suit against Kiefer and his law corporation on September 3, 1993.[1] Defendants filed an exception of prescription as well as an answer asserting that plaintiffs' underlying claim lacked merit and thus the malpractice suit should be dismissed.

Because Kiefer admitted he was negligent in filing the underlying claim too late, he bore the burden in the instant malpractice suit to show that it lacked merit. Jenkins v. St. Paul, 422 So.2d 1109 (La.1982). Kiefer relied on the terms of the lease and La. R.S. 39:1641(A) to support his position. However, the trial court concluded that Kiefer failed to carry his burden, and that, had he timely filed suit, plaintiffs would have been successful in their underlying claim against the State. Consequently the court awarded plaintiffs damages in the amount of $81,856.22 plus interest and costs. The court did not rule on the prescriptive plea. Defendants perfect this appeal reurging their exception of prescription and asserting the trial court erred in finding that plaintiffs' underlying claim had merit. For the following reasons, we affirm.

PRESCRIPTION/PEREMPTION:

It is undisputed that Kiefer's error occurred sometime prior to November 18, 1985, the date he filed suit on plaintiffs' behalf against the State. At that time, prescription in a legal malpractice case was governed by Civil Code article 3492 which provides for a one year liberative prescriptive period. In 1990, the legislature enacted La. R.S. 9:5605, which provided that a legal malpractice claim prescribed within one year from the date of the negligent act or one year from the date the alleged negligent act was discovered or should have been discovered. The statute further provided that "even as to actions filed within one year from the date of such discovery, in all events such actions shall be filed at the latest within three years from the date of the alleged act, omission or neglect."

In 1992 the statute was amended by Act 611 to provide, inter alia, the following:

"The provisions of this Section are remedial and apply to all causes of action without regard to the date when the alleged act, omission, or neglect occurred. However, with respect to any alleged act, omission, or neglect occurring prior to September 7, 1990, actions must, in all events, be filed in a court of competent jurisdiction and proper venue on or before September 7, 1993, without regard to the date of discovery of the alleged act, omission, or neglect. The one year and three year periods of limitation provided in Subsection A of this section are peremptive periods within the meaning of Civil Code article 3458 and, in accordance with civil Code article 3461, may not be renounced, interrupted, or suspended."

In Lima v. Schmidt, 595 So.2d 624 (La. 1992), decided after the enactment of R.S. 9:5605 in 1990, but prior to the 1992 amendment, the Supreme Court applied the one year prescriptive period of Civil Code article 3492 where the negligent act occurred and the malpractice claim was filed prior to 1990. Because the period was prescriptive rather than peremptive, the court concluded that prescription was suspended "during the attorney's continuous representation of the *656 client regarding the specific subject matter in which the alleged wrongful act or omission occurred." Id. at 630.

In Perez v. Shook, 97-0420 (La.App. 4 Cir. 12/3/97), 703 So.2d 821, writ denied 98-0438 (La.3/27/98), 716 So.2d 894, this court interpreted the Lima decision to mean that if the malpractice cause of action occurs prior to its effective date, R.S. 9:5605 is not applicable and the one year prescription of article 3492 is applicable. Even though the malpractice suit in Perez was filed September 3, 1993, after the statute's effective date and after the 1992 amendment, because the negligent act occurred prior to 1990 we held that the "continuous representation" rule of Lima suspended prescription and therefore plaintiffs suit was timely.

In Reeder v. North, supra, decided by the Supreme Court six weeks prior to our decision in Perez v. Shook, supra, the alleged malpractice occurred prior to 1990, but the malpractice suit was filed September 15, 1994. Relying on the clear wording of subsection "B" of R.S. 9:5605, (the 1992 amendment) the court held that since the statute provides that the three year period is peremptive, it cannot be suspended, interrupted, or suspended. The court concluded that "there is no doubt that the legislature intended that three years after the act, omission, or neglect, the cause of action is extinguished, regardless of when the negligence is discovered and regardless of whether a malpractice action may be brought within that three year period." Reeder, supra at 1297.

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