Leonard Pivnick v. White Getgey & Meyer Co. LPA

CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 12, 2009
Docket07-4304
StatusPublished

This text of Leonard Pivnick v. White Getgey & Meyer Co. LPA (Leonard Pivnick v. White Getgey & Meyer Co. LPA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard Pivnick v. White Getgey & Meyer Co. LPA, (6th Cir. 2009).

Opinion

RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit Rule 206 File Name: 09a0012p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT _________________

X - LEONARD PIVNICK, - Plaintiff-Appellant, - - No. 07-4304 v. , > - Defendants-Appellees. - WHITE, GETGEY & MEYER CO., LPA et al., - N Appeal from the United States District Court for the Southern District of Ohio at Cincinnati. No. 05-00580—Michael R. Barrett, District Judge. Argued: December 9, 2008 Decided and Filed: January 12, 2009 Before: GILMAN, SUTTON, and KETHLEDGE, Circuit Judges.

_________________

COUNSEL ARGUED: R. Michael Phebus, F. HARRISON GREEN CO., Cincinnati, Ohio, for Appellant. Shea W. Conley, REMINGER CO., Lexington, Kentucky, for Appellee. ON BRIEF: R. Michael Phebus, F. Harrison Green, F. HARRISON GREEN CO., Cincinnati, Ohio, for Appellant. Shea W. Conley, REMINGER CO., Lexington, Kentucky, Brian D. Goldwasser, REMINGER CO., Cincinnati, Ohio, for Appellee. _________________

OPINION _________________

RONALD LEE GILMAN, Circuit Judge. This is a legal malpractice case arising from Leonard Pivnick’s purchase of a thoroughbred horse from Fasig-Tipton Company (FTC) at an auction. Because Pivnick never paid for the horse, FTC eventually repossessed and sold the animal at a private sale. Pivnick argued that the notices he received from FTC regarding his default and the subsequent resale of the horse were not commercially reasonable and thus violated Kentucky’s version of the Uniform Commercial Code. He

1 No. 07-4304 Pivnick v. White, Getgey & Meyer Co. et al. Page 2

hired the law firm of White, Getgey & Meyer Co., LPA (WGM) to represent him in a suit against FTC, but WGM failed to prosecute the case that it had filed in state court. This caused the case to be dismissed.

Pivnick then sued WGM for legal malpractice in federal court. WGM stipulated to its legal malpractice, but defended on the ground that Pivnick would not have succeeded on the merits in the underlying suit against FTC even if the case had gone forward. The jury returned a verdict in WGM’s favor. For the reasons set forth below, we AFFIRM the judgment of the district court.

I. BACKGROUND

A. Factual background

Pivnick purchased a one-year-old thoroughbred horse for $410,000 at an FTC auction in Saratoga Springs, New York in August 1997. Although he repeatedly promised FTC that payment was imminent, Pivnick never paid for the horse. At trial, Pivnick admitted that he did not have sufficient funds to make the payment until January 1998.

The purchase of the horse was subject to a document titled Conditions of Sale, which provided in relevant part as follows:

NINTH – TITLE AND DELIVERY: Title passes to Buyer at fall of the hammer. . . . Buyer shall immediately present himself to make settlement upon fall of the hammer . . . . TENTH – CREDIT AND SETTLEMENT: . . . Buyer grants to Auctioneer a Security interest in each horse purchased, . . . to secure payment of the amount of unpaid purchase price, sales tax, and other indebtedness owed by buyer to Auctioneer or Auctioneer’s affiliates . . . . Buyer agrees that Auctioneer shall have all rights and remedies of a Secured Party pursuant to the Conditions of Sale and the Uniform Commercial Code or other applicable law. ELEVENTH – DEFAULTERS: SHOULD BUYER FAIL TO COMPLY IN ANY RESPECT WITH CONDITIONS NINTH AND TENTH ABOVE, THE AUCTIONEER MAY, IN ITS ABSOLUTE DISCRETION, PURSUE ANY REMEDY AVAILABLE AGAINST THE DEFAULTING BUYER, INCLUDING, BUT NOT LIMITED TO, TAKING POSSESSION OF THE HORSE, RESALE OF THE HORSE AT PUBLIC AUCTION OR BY PRIVATE TREATY FOR ACCOUNT OF DEFAULTER. In any case, Buyer shall be liable for any deficiency after charging to Buyer’s account all No. 07-4304 Pivnick v. White, Getgey & Meyer Co. et al. Page 3

costs of maintenance and resale, including, but not limited to, service charges, attorney’s fees, costs of litigation, and damages available to Auctioneer by law. Pivnick acknowledged and agreed to the Conditions of Sale in an Acknowledgment of Purchase form that he signed on August 5, 1997.

On September 4, 1997, Pivnick received a letter from Boyd Browning, FTC’s Executive Vice President, advising him that he was in default and that FTC required payment of the purchase price within seven days. In a conversation on the same day, Pivnick orally promised Browning that he would pay for the horse in one or two weeks. Browning sent Pivnick a follow-up letter the following day, stating that if payment was not received by FTC on or before September 18, 1997, FTC “reserved all its rights available per the Conditions of Sale, including taking possession of the horse for the purpose of resale, either at public auction or by private treaty . . . .” The horse was subsequently resold at a private sale on November 6, 1997 for $375,000. Browning informed Pivnick of the sale in a letter dated the same day. After being “broken” and trained for racing, the horse was then sold for $800,000 in late February 1998 at a public sale.

B. Procedural history

Pivnick brought suit in state court against FTC in March 1998, seeking consequential damages for the sale of the horse. FTC counterclaimed for the difference between the price that Pivnick had agreed to pay and the price that FTC obtained in the private sale. In June 2001, Pivnick hired WGM as successor counsel in the case. WGM failed to prosecute Pivnick’s claims, which resulted in the dismissal of the case by the state court in September 2004. FTC’s counterclaim was likewise dismissed.

In September 2005, Pivnick filed suit in federal court against WGM for legal malpractice. WGM stipulated to its legal malpractice, but defended on the ground that Pivnick would not have succeeded in the underlying case against FTC. The trial was originally set for September 10, 2007, but the district court moved the start date to September 12, 2007 due to a scheduling conflict. One of WGM’s witnesses, Browning, was available to testify only on September 12, the first day of trial. Over Pivnick’s objections, the court permitted Browning to testify out of turn and before Pivnick presented his case. No. 07-4304 Pivnick v. White, Getgey & Meyer Co. et al. Page 4

After Browning testified, Pivnick moved for a mistrial. The record does not show that the court has ever formally ruled on the motion.

Pivnick then presented his case. At the close of his proof, he moved for judgment as a matter of law. The district court denied the motion. Pivnick did not renew his motion at the close of all the evidence. The jury subsequently returned a verdict in WGM’s favor. Pivnick then moved to set aside the jury verdict and again for judgment as a matter of law. These motions were denied by the court. This timely appeal followed.

II. ANALYSIS

A. Sufficiency of the notice

1. Standard of review

“In a diversity case such as this, we look to state law for the standard with which to review a denial of [a motion for judgment as a matter of law].” Nationwide Mut. Fire Ins. Co. v. May, 860 F.2d 219, 222 (6th Cir. 1988) (citation omitted). Under Kentucky law, the jury’s verdict must be upheld if, “draw[ing] all fair and rational inferences from the evidence in favor of the party opposing the motion,” the evidence is sufficient to sustain the verdict. Spivey v. Sheeler, 514 S.W.2d 667, 673 (Ky. 1974) (citation and internal quotation marks omitted). Kentucky courts thus recognize that “it is the jury’s province to weigh the evidence.” Perry v. Ernest R.

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Leonard Pivnick v. White Getgey & Meyer Co. LPA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-pivnick-v-white-getgey-meyer-co-lpa-ca6-2009.