M & D ENTERPRISES, INC. v. Wolff

923 S.W.2d 389, 1996 WL 135626
CourtMissouri Court of Appeals
DecidedMay 20, 1996
Docket19983, 20049
StatusPublished
Cited by25 cases

This text of 923 S.W.2d 389 (M & D ENTERPRISES, INC. v. Wolff) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & D ENTERPRISES, INC. v. Wolff, 923 S.W.2d 389, 1996 WL 135626 (Mo. Ct. App. 1996).

Opinions

GARRISON, Judge.

This appeal involves the statute of limitations in a suit against attorneys for legal malpractice. The suit was filed by M & D Enterprises, Inc. (M & D) and International Materials Corporation (IMC) (collectively referred to as Plaintiffs) against Defendants Richard Wolff (Wolff) and Constantine G. Pulos, as well as professional corporations with which they were associated (collectively referred to as Defendants), alleging that Defendants improperly represented Plaintiffs in their suit against Carboline Company, Inc. (Carboline). Plaintiffs appeal from an order granting Defendants’ motions for summary judgment based on the statute of limitations. We affirm.1

[392]*392The essential facts are as follows:2 M & D entered into an agreement with Carboline by which M & D would manufacture, and Carbo-line would market, fireproofing materials for which M & D owned a patent. Later, the principals of M & D formed IMC, which then entered into an agreement with Carboline to manufacture and sell the products internationally in return for royalties.

As a result of disagreements with Carbo-line, Harvey Davis, the president of both M & D and IMC, met with Defendants on May 16, 1978, and discussed the possibility of employing them to pursue claims against Carboline for commissions owed and for the unauthorized use of the product formulas. On May 19, 1978, however, Carboline filed a suit in St. Louis County seeking injunctive relief against M & D and obtained a temporary restraining order. Defendants were employed to represent Plaintiffs in the Car-boline suit on May 26,1978.

When Mr. Davis appeared in court on July 18, 1978 in response to an order to show cause why the temporary restraining order should not be converted into a temporary injunction, Wolff presented him with a “Temporary Consent Injunction,” already signed by himself and Carboline’s attorney, and which had been approved by the judge. He advised Davis to sign the consent injunction, saying the judge had already made up his mind and would hear nothing further. Mr. Davis consented to the injunction, which barred Plaintiffs from manufacturing the product at issue, after Wolff allegedly refused his demands to oppose the injunction and request a hearing on the matter.

On July 26, 1978, Defendants filed a counterclaim against Carboline seeking damages. Plaintiffs allege, however, that contrary to Mr. Davis’ requests, the counterclaim did not include claims for fraud and breach of fiduciary duty. Thereafter, Mr. Davis complained to Defendants about the lack of progress of the ease, including a letter dated January 2, 1980 which recited that there had been no action by the court in the last year. The case was later placed on the dismissal dockets at least twice, in 1983 and in 1985, but dismissal was avoided each time.

Carboline later merged with Sun Company, Inc. (Sun) and on Wolffs recommendation that a federal suit would permit a more expeditious processing of their claims, Defendants filed suit, on behalf of Plaintiffs, against Sun in the United States District Court for the Eastern District of Missouri. The suit alleged generally the same causes of action as were alleged against Carboline in the state court counterclaim. The federal court, however, sustained Sun’s motion for summary judgment on January 8, 1985 for failure to join an indispensable party (Carbo-line), whose joinder would have defeated diversity jurisdiction. Plaintiffs allege that, contrary to their request, Defendants did not appeal that ruling. Defendants also informed Plaintiffs that Sun planned to seek recovery of approximately $26,000 in costs as a result of the dismissal of the federal case. Although Plaintiffs did receive a bill of costs in the amount of $26,278 in that case, in fact something in excess of $5,0003 was apparently assessed and paid by Plaintiffs.

As a result of Plaintiffs’ growing dissatisfaction with Defendants, Mr. Davis wrote a letter addressed to the Bar Association of Metropolitan St. Louis on May 2,1985, which he claims was never mailed, complaining about Defendants’ services and saying that Plaintiffs had lost confidence in them. Mr. [393]*393Davis stated that they had made arrangements to employ other counsel in Springfield, Missouri, but it was necessary to resolve an existing fee dispute with Defendants.4 He also said that Defendants were not entitled to any additional fees because of the way they had represented Plaintiffs in the matters.

On June 24, 1985, Plaintiffs entered into a written contingent fee contract with attorneys in Springfield. During the discussions, the Springfield attorneys discussed with Mr. Davis the possibility of a malpractice suit. In July, 1985, Defendants withdrew from both the St. Louis County and federal court cases. On August 9, 1985, Plaintiffs wrote Defendants discharging them “for cause,” saying their “employment as attorneys is revocable for cause including, but not necessarily limited to nonperformance and failure to prosecute our claims with reasonable diligence.” Thereafter, Defendants performed no further legal services for Plaintiffs.

Plaintiffs’ new counsel filed an action against Sun in Greene County and, on May 27,1988, obtained a dissolution of the Temporary Consent Injunction in the suit pending in St. Louis. In October, 1989, Plaintiffs reached a settlement of the St. Louis and Greene County actions under which Plaintiffs received $2,660,000 and return of the disputed formulas. After litigation of Defendants’ claim against Plaintiffs for attorney fees,5 Plaintiffs also settled Defendants’ claim for the reasonable value of their services, with the agreement that the settlement would not prejudice any other rights the parties might have.

On April 2, 1998, Plaintiffs filed this suit alleging that Defendants were guilty of negligence and breach of fiduciary duties in their representation of Plaintiffs. Defendants filed motions for summary judgment claiming that the applicable statute of limitations, § 516.120,6 expired prior to the filing of Plaintiffs’ petition. The trial court sustained these motions and entered summary judgment for Defendants.

On this appeal, Plaintiffs allege trial court error in granting the summary judgment because: (1) the statute of limitations could not have commenced running until Plaintiffs sustained damages, which did not occur until the conclusion of the underlying claim against Carboline; (2) the statute of limitations could not have commenced running until the last item of damage suffered by Plaintiffs had accrued which also would have been when the underlying claims were settled; (8) Defendants should be equitably estopped from raising the statute of limitations as a defense or § 516.280 should have prevented the statute from running; and (4) there were genuine issues of material fact concerning the accrual of the cause of action.

POINT I

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Bluebook (online)
923 S.W.2d 389, 1996 WL 135626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-d-enterprises-inc-v-wolff-moctapp-1996.